Village Bank closing three branches
Monday, September 14, 2009 4:58 AM
Village Bank is closing three of its four branches due to economic conditions, bank officials said this morning.
The Springfield-based bank is closing its two Springfield branches - at 2760 S. Kansas Expressway and 1776 E. Independence St. - as well as its branch in Ozark, at 1301 W. South St., on Dec. 11. The bank's main branch, at 2360 E. Sunshine St., will remain open.
"The current economic environment has had an impact on businesses nationwide, including Village Bank," the bank said in the release. "We are taking appropriate actions to streamline operations to enable Village Bank to continue to provide excellent service to our customers and the community."
The employees of the affected branches, who were notified Friday of the closure, are being offered severance packages if they stay on with the bank until Dec. 11, according to bank President and CEO George Marino.
He added that Village Bank officials have contacted other Springfield banks to alert them of the closure and seek help in placing affected workers.
"We're going to try to place anyone that wants to be placed with another bank in the area," Marino told Springfield Business Journal. "We can't hire for them, but we can sure make a sincere effort to get that done."
Customers were notified by mail on Friday about the closure. The release also notes that all accounts remain covered by insurance through the Federal Deposit Insurance Corp.
The bank, founded in Springfield in 1997, has been in consolidation mode since last year; it sold its branch at 2920 E. Chestnut Expressway to Bank of Bolivar in late 2008, citing a desire to shrink to a more manageable size.
As of June 30, Village Bank assets totaled $92 million, loans totaled $64.8 million, and deposits totaled $67.9 million, according to data from the FDIC.