In September 2021, the Company announced that, effective immediately, ALC ceased new business development and permanently closed its 20 branch lending locations in Alabama and Mississippi to the public. The closure of ALC’s branches eliminated 56 full-time employment positions during the third quarter of 2021. ALC will continue to service its remaining portfolio of loans from its headquarters in Mobile, Alabama. The cessation of new business and closure of ALC’s branch locations are being undertaken by the Company as part of a long-term strategy to reduce expenses, fortify asset quality, and focus the Company’s loan growth efforts in other areas, including the Bank’s commercial lending and consumer indirect lending efforts.

Total restructuring charges incurred during the three months ended September 30, 2021 consisted of the following:

	Three Months Ended
	September 30, 2021
	(Dollars in Thousands)
Expense Category
Severance and personnel expenses	$	155
Lease termination costs		65
Fixed asset valuation adjustments		150
Termination of technology contracts		85
Other expenses		93
Total expenses	$	548

In connection with the ALC branch closures, the Company recorded pre-tax charges of approximately $0.5 million during the third quarter of 2021. These one-time expenses included severance and related personnel costs, lease termination costs, fixed asset valuation adjustments, termination of technology contracts, and other costs to administer the branch closures. The Company expects to incur approximately $0.5 million in additional expenses primarily related to personnel expenses associated with one-time payments to ALC personnel that continue to manage the remaining loan portfolio, as well as expenses associated with the ultimate termination of ALC’s remaining branch leases. It is expected that the majority of the remaining one-time expenses will be incurred during the fourth quarter of 2021 and the first quarter of 2022

and will be fully offset by ongoing cost savings that result from the closures. The ongoing cost savings include reduced personnel-related expenses, branch lease and property depreciation expenses, and other overhead expenses that will no longer be incurred.