TD Banknorth to lose Barnstable branch and seven Cape employees in companywide consolidation
by Glenn RittMarch 23, 2007 -- While some rivals are expanding their operations on the Cape, TD Banknorth is contracting. It’s part of a companywide evaluation of its branch network across the entire Northeast and Mid-Atlantic after years of rapid-fire acquisitions that included Cape Cod Bank & Trust.
As a result, TD Banknorth is laying off about 400 employees companywide, including seven on the Cape. Among 24 branch closings are two in Massachusetts – one in Marion and one at 3206 Route 6A in Barnstable. Seven Cape employees have lost their jobs.
“These were extremely difficult decisions to make, but ones that were necessary in response to the current operating environment,” said Bharat Masrani, TD Banknorth president and CEO. “We are committed to treating our employees with respect and will do everything we can to assist them during these difficult times.”
“Our goal is to ensure that our retail network is efficiently meeting the needs of customers,” said Suzanne Poole, EVP for Retail Delivery. “We will minimize the impact to our customers and ensure this transition is as comfortable for them as possible.”
“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,” added Masrani.
Growth has been challenging on the Cape since TD Banknorth acquired CCB&T more than three years ago. It has lost its No. 2 market share for consumer deposits to Citizens Bank. Meanwhile, community-based banks have picked up share despite an overall shrinking market. Also, a chunk of its wealth management business moved to other banks, particularly Cape Cod Five Cents Savings Bank, which hired several key CCB&T trust and asset managers two years ago.
This consolidation process began last year and gained momentum after the company’s last acquisition, Hudson United Bank in New Jersey. “It’s part of a long-term strategy looking forward,” said Joanne Sullivan, assistant vice president for community relations.
"As part of our commitment to enhance the customer experience, we are also upgrading some of our branches and expanding our hours of operation to make it more convenient for our customers," said Sullivan. "This may include opening some new locations."
TD Banknorth’s consolidation comes at a particularly challenging times for banks as they face a bevy of challenges – some unprecedented. In Massachusetts, consumer deposits are down across the marketplace as people move money from savings accounts and CDs back into the stock market. Higher energy and insurance costs also have eaten into overall savings.
More significantly, banks are confronting an inverted yield curve, which is severely pinching profits at a time when residential mortgage and refinancing businesses are suffering in the midst of the housing downturn.
Meanwhile, branch operations are particularly expensive at a time when banks must also invest heavily in technology – the same technology that makes branches less relevant for both consumers and businesses that can handle everything from bill paying to check scanning right from their computers.
Another mega-bank, Sovereign, has announced layoffs and branch closings of its own. On the Cape, it is closing its Route 132 location in Hyannis and its East Harwich branch. Observers are anticipating other cost-saving moves by other banks on the Cape, where a dozen financial institutions vie for customers.
Glenn Ritt Glenn Ritt is editor and co-publisher of Cape Business Publishing LLC. He is the former publisher of Cape Cod Community Newspapers and editor of The Bergen Record in New Jersey. 
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