Atlantic Union planning new round of branch closures

Atlantic Union Bancshares in Richmond, Va., is closing more branches.

The $19.9 billion-asset company said in regulatory filing Tuesday that it will shutter five branches in February.

The announcement comes two months after Atlantic Union closed 14 branches, or roughly a tenth of its network. The company shed about 125 jobs when those locations where closed.

Atlantic Union said the latest closures will save it $1.6 million annually. The company expects to incur $2.5 million in one-time expenses, which will be recognized in the fourth quarter and first quarter.

Banks for years have been reducing the size of their branch networks, but those efforts have gained momentum as the pandemic forced more customers to lean heavily on digital channels.

Banks closed 1,275 branches over the 12-month period that ended on Sept. 30, according to data compiled by S&P Global Market Intelligence.