Restructuring Charges

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES

Effective September 3, 2021, ALC ceased new business development and permanently closed its 20 branch lending locations in Alabama and Mississippi to the public. The closure of ALC’s branches eliminated the majority of ALC’s full-time employment positions during the third quarter of 2021. ALC continues to service its remaining portfolio of loans from its headquarters in Mobile, Alabama. The cessation of new business and closure of ALC’s branch locations were undertaken by the Company as part of a long-term strategy to reduce expenses, fortify asset quality, and focus the Company’s loan growth efforts in other areas, including the Bank’s commercial lending and consumer indirect lending efforts.

Total restructuring charges incurred during the nine months ended September 30, 2022 and the year ended December 31, 2021 consisted of the following:


	Nine Months Ended		Year Ended
	September 30, 2022		December 31, 2021
	(Dollars in Thousands)
Expense Category
Severance and personnel expenses	$	108	$	263
Lease termination costs		2		224
Fixed asset valuation adjustments		—		239
Termination of technology contracts		45		85
Other expenses		—		93
Total expenses	$	155	$	904

As of September 30, 2022, the majority of restructuring charges associated with the closure of ALC's branches have been incurred.