Peoples Announces Branch Consolidations

Peoples Heritage Bank announced today a series of branch consolidations. The consolidations are primarily a response to evolving customer patterns, given Peoples' various delivery systems and changing technology, said David J. Ott, president and CEO of Peoples Heritage Bank.

"Bricks and mortar used to be the only way we delivered banking services," Mr. Ott said. "Over the past decade, many customers have become primarily ATM users, particularly to get cash. Additionally, the introduction of our PhoneBank three years ago has been embraced by customers to the point that we now take literally hundreds of thousands of calls each month through a combination of live operators and automated response units. Through PhoneBank, customers can open deposit accounts and complete loan applications as well as get balance information and make account transfers."

The bank will utilize some of the savings from the upcoming branch consolidations, most of which will occur in the next few months, to help fund an Internet banking initiative expected to be announced later this year.

"Branches will never go away but other delivery systems are replacing some of the customer traffic we used to see in them," said Mr. Ott. "Internet banking activity from all indications will be very substantial."

In virtually all the areas where branches are being consolidated, Peoples Heritage will continue to operate other branches and ATMs in the same communities.

The consolidations are as follows:

The Saco Main Street branch will be consolidated into the Shaw's supermarket branch in that community; the Biddeford supermarket branch will be consolidated into the freestanding banking center in that city.

In Lewiston-Auburn, the 664 Main Street (Lewiston) office will be consolidated into the Middle and Main Street Lewiston office; and the Center Street banking center in Auburn will be consolidated into the nearby Great Falls office.

The Main Street Shaw's supermarket branch in Bangor will be consolidated into a new Exchange Street office; the Farmington Shop 'n Save supermarket branch will be consolidated back into the Route 4 office; the West Paris banking center of Oxford Bank & Trust will be consolidated into the South Paris office; and the Wells Shop 'n Save supermarket branch will be consolidated into the York banking center.

Following the consolidations, Peoples Heritage will operate 67 banking centers and more than 90 ATMs throughout the state. The bank has approximately $4.5 billion in assets and the state's leading deposit market share.

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