Prime Pacific Bank to close Lynnwood branch
The branch at 4710 196th St. SW will close on Sept. 20, said bank president and CEO Glenn Deutsch. The move will affect about 160 customers. The bank will sell the building after its closure.
Deutsch said the consolidation will improve Prime Pacific's operational efficiencies. When the bank opened the headquarters office at 2502 196th St. SW in 2009, he said, it was thought that a large number of customers would resist driving across I-5 to do their banking. That hasn't panned out.
"We thought there would be a bigger division of customers," Deutsch said.
"When we bought the new building, merging the two branch operations was a consideration," board chairman Tim McMahon said in a statement. "From a shareholder perspective, this move makes good sense; additionally, it will continue to give customers access to all of our banking services."
The consolidation will improve Prime Pacific Bank's profitability and capitalization, Deutsch said, but it's not related to the bank's 2009 order from the Treasury Department's Office of Comptroller of the Currency to improve capitalization. The bank completed two stock offerings in the past year to raise capital and is "growing the rest organically," he said.
Prime Pacific Bank has complied with most other elements of the federal order, Deutsch said.
The bank is operationally profitable, but the cost of working through "bad credits" from the 2008 recession continues to be a drag, he said.
Prime Pacific Bank officials said customers have already been notified and expect the branch transfer will be seamless. Customers will maintain their same account information.
Prime Pacific Bank was founded in May 1995 as a full-service community bank. It has $110 million in deposits, Deutsch said.
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