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Restructuring Charges | 9 Months Ended
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Sep. 30, 2020
Restructuring And Related Activities [Abstract] |
Restructuring Charges |
(2.) | RESTRUCTURING CHARGES
On July 17, 2020, the Bank announced management’s decision to adapt to a full-service branch model to streamline retail branches to better align with shifting customer needs and preferences. The transformation resulted in six branch closures and a reduction in staffing. The announcement was the result of a nine-month comprehensive assessment of all lines of business and functional areas, conducted in partnership with a leading process improvement organization. The data-driven analysis identified, among other things, overlapping service areas, automation opportunities and streamlining of processes and operations that would enhance customer experiences and facilitate the long-term sustainability of current and future branches. The announced consolidations represented about ten percent of the branch network and impacted approximately six percent of the total Company workforce. Where possible, those impacted were offered alternative roles or the opportunity to apply for open positions in other areas of the Company. Separated associates received a comprehensive severance package based on tenure. The Company expects to complete a substantial majority of these actions by December 31, 2020. The Company incurred total pre-tax expense related to the branch closures of approximately $1.6 million, including approximately $0.2 million in employee severance, $0.5 million in lease termination costs and $0.9 million in valuation adjustments on branch facilities. The Company expects $0.7 million of total costs will result in future cash expenditures. The Company recognized all of these expenses during the third quarter of 2020. The Company anticipates annual expense savings of approximately $2.6 million as a result of these branch closures.
(2.) | RESTRUCTURING CHARGES (continued)
The following table represents the consolidated statements of income classification of the Company’s restructuring charges (in thousands):
|  |  |  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | Income Statement Location |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Severance costs |  | Salaries and employee benefits |  | $ | 224 |  |  | $ | — |  |  | $ | 224 |  |  | $ | — |
Lease termination costs |  | Restructuring charges |  |  | 454 |  |  |  | — |  |  |  | 454 |  |  |  | — |
Valuation adjustments |  | Restructuring charges |  |  | 908 |  |  |  | — |  |  |  | 908 |  |  |  | — |
Total |  |  |  | $ | 1,586 |  |  | $ | — |  |  | $ | 1,586 |  |  | $ | — |
The following table represents the changes in the restructuring reserve (in thousands):
|  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Beginning balance |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Restructuring charges |  |  | 1,586 |  |  |  | — |  |  |  | 1,586 |  |  |  | — |
Cash payments |  |  | (249 | ) |  |  | — |  |  |  | (249 | ) |  |  | — |
Ending balance |  | $ | 1,337 |  |  | $ | — |  |  | $ | 1,337 |  |  | $ | — |

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- References No definition available. + Details
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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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