Bank of the Pacific to Close Two Branches Consolidating into Nearby Coastal Branch Locations


ABERDEEN, Wash., Oct. 19, 2018 (GLOBE NEWSWIRE) -- Pacific Financial Corporation (OTCQB: PFLC), the holding company for Bank of the Pacific, today announced plans to close two branches in the Pacific Northwest communities of Naselle and Warrenton.  Both branches will retain an automated teller machine (ATMs) in their respective locations.  Effective February 1, 2019, customer accounts from the Naselle branch will be consolidated into the nearby Long Beach or Cathlamet branches in Coastal Washington.  The Warrenton accounts will be consolidated into the adjoining Astoria or Seaside branches in Coastal Oregon. 

“Based on a thorough assessment of the current and future banking environment, the declining use of the physical branch is becoming increasingly apparent.  In the case of Naselle, branch transactions have steadily declined in concert with the decline in its population and increased use of online tools to access banking services.  As such, the branch has been operating on limited hours for some time.  It makes sense to transfer our customer accounts to more viable nearby locations,” said Denise Portmann, President and Chief Executive Officer.  “Fortunately, due to retirement and other staffing opportunities at this time, there will be minimal impact to our employees.  We will be able to retain a majority of the staff from Naselle and relocate them to other branches.

“Similarly, the Warrenton branch was also not achieving its desired market penetration, and nearby branches in our Seaside and Astoria markets attracted the bulk of the deposits in Clatsop County in recent years.  In fact, per data recently released by the FDIC, the city of Warrenton has the smallest average branch size for banks in Clatsop County compared to other cities within the county,” added Portmann.  “We believe our customers will have minimal disruption as we transfer their accounts to neighboring branches in Astoria or Seaside.

“While we are closing the physical locations in Naselle and Warrenton, business development efforts will continue in both markets,” said Portmann.  “In the meantime, customers from Naselle and Warrenton will each be receiving a letter in the coming days outlining the details of the transition.  Customers will continue to have access to all of our branch locations as well as our technology-based banking services such as mobile banking, remote deposit capture, ATMs, debit cards and online banking.  We believe optimizing our branch network plays a significant role in prudently allocating our capital resources.

“The financial impact of these transactions is anticipated to result in a reduction of $437,000 in operating costs.  We will take a one-time charge of approximately $60,000 for associated closing costs, including severance and write-down of fixed assets,” added Portmann.  “Upon completion of these transactions, Bank of the Pacific will have enhanced the effectiveness of its branch delivery network, while continuing to maintain a strong presence in the States of Washington and Oregon.”

ABOUT PACIFIC FINANCIAL CORPORATION
Pacific Financial Corporation of Aberdeen, Washington, is the bank holding company for Bank of the Pacific, a state chartered and federally insured commercial bank. Bank of the Pacific offers banking products and services to small-to-medium sized businesses and professionals in western Washington and Oregon. At June 30, 2018, the Company had total assets of $887 million and operated fifteen branches in the communities of Grays Harbor, Pacific, Whatcom, Skagit, Clark and Wahkiakum counties in the State of Washington, and three branches in Clatsop County, Oregon. The Company also operated loan production offices in the communities of DuPont and Burlington in Washington and Salem, Oregon. Visit the Company’s website at www.bankofthepacific.com. Member FDIC.

Cautions Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other laws, including all statements in this release that are not historical facts or that relate to future plans or events or projected results of Pacific Financial Corporation and its wholly-owned subsidiary, Bank of the Pacific. These forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those projected, anticipated or implied. These risks and uncertainties include various risks associated with growing the Bank and expanding the services it provides, successfully completing and integrating the acquisition of new branches and development of new business lines and markets, competition in the marketplace, general economic conditions, changes in interest rates, extensive and evolving regulation of the banking industry, and many other risks. We undertake no obligation to update or revise any forward-looking statement. Readers of this release are cautioned not to put undue reliance on forward-looking statements.

Contacts:
Denise Portmann, President & CEO
Douglas Biddle, EVP & CFO
360.537.4061