Two County Banks Will Close Branches for Lack of Business

Banks are always looking to expand, but more bricks and mortar aren’t always the answer.

Two Orange County banks, for instance, are each closing a branch office by the end of the year because the amount of business doesn’t justify the expense of maintaining the buildings.

CommerceBank in Newport Beach has sent letters to customers of its El Modena branch in Orange saying that it will close the branch by the end of the year and transfer their accounts to the downtown Orange office. The branch came with the bank’s acquisition of California City Bank earlier this year.

The $8 million in deposits at the east side branch was well below the bank’s average of $50 million per branch, said Clyde Gossert, the bank’s president. In addition, the bank is primarily a business bank that holds large deposits from relatively few customers, and the El Modena branch holds mainly consumer checking accounts.

Landmark Bank in La Habra, meantime, is shutting down its Santa Fe Springs branch and moving the accounts to its main office. The Santa Fe Springs branch had deposits of $5 million, considerably lower than roughly $25 million at other branches.

Craig Collette, Landmark’s president, said the bank is consolidating its commercial services--the prime activity at Santa Fe Springs--in the main office. It plans to open two branches in more promising areas in west Orange County and west Riverside County.

The branch closings must first be approved by state banking regulators.