TD Banknorth said Friday it will close one of its four branches in Westport, once part of the old Westport Bank & Trust Co., as part of a restructuring plan that will shutter 24 branches and cut 400 positions.
There was no official word on which Westport office will close, but a bank source said it would be the one at 420 Post Road West. The other branches are located at 90 Post Road East, 1111 Post Road East, and 50 Charles St.
Customers will be notified of specific branch closings in mid-April, with most offices tentatively scheduled to be closed during the third quarter, the company said.
The four Connecticut branches to be closed employ a total of 14 people, a company spokeswoman said. The employees, who were given the news Thursday, will be reassigned to other branches where possible.
The other affected Connecticut branches are in Trumbull, Waterbury, and New Britain. The other branches to be closed or consolidated include 13 in New Jersey, three in New York, two in Pennsylvania and two in Massachusetts.
The Portland, Maine-based bank also operates in Maine, New Hampshire and Vermont. The $40 billion bank is owned by TD Bank Financial Group in Toronto, and last year announced a plan to go private.
TD Banknorth has struggled in recent quarters from slowing loan growth, stiff competition for loans and deposits, and narrowed lending margins, analysts said.
“The steps we’ve taken today will position the bank for organic growth going forward and are part of our previously announced goal of reducing our operating expenses by between 5 percent and 8 percent by 2008,” said TD Banknorth President and CEO Bharat Masrani in a written statement.
“These were extremely difficult decisions to make, but ones that were necessary in response to the current operating environment.”
Hudson United took over Westport Bank & Trust Co. and its six-branch Fairfield County franchise in 1996 for almost $69 million through its then-owned Lafayette American Bank. It renamed the bank with its own name in 1999.
In 2005, TD Banknorth said it agreed to buy Hudson United for $1.9 billion in cash and stock to expand in the Northeast. The sale closed in early 2006.
In November 2004, Hudson United sold its landmark downtown building—which had housed Westport Bank & Trust for 80 years—to developer David Waldman for $4.2 million. It moved its operations across the street to the old Westport Town Hall at 90 Post Road East.
The Westport TD Banknorth branch closing comes amid a wave of branch openings in town by other banks, including HSBC, Peoples, Citibank and Commerce Bank. (See WestportNow Marrch 14, 2007)
