On September 3, 2021, the Company announced that, effective immediately, ALC had 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 56 full-time employment positions during the third quarter of 2021. ALC is continuing 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 are being 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. As of December 31, 2021, ALC employed eight full time employees, compared to 81 as of December 31, 2020.

	Year Ended
	December 31, 2021
	(Dollars in Thousands)
Expense Category
Severance and personnel expenses	$	263
Lease termination costs		224
Fixed asset valuation adjustments		239
Termination of technology contracts		85
Other expenses		93
Total expenses	$	904

In connection with the ALC branch closures, the Company recorded pre-tax charges of approximately $0.9 million during the year ended December 31, 2021. These one-time expenses included severance and related personnel costs, lease termination costs, fixed asset valuation adjustments, termination of technology contracts, and other costs to administer the branch closures. The Company expects to incur approximately $0.1 million in additional one-time charges primarily associated with payments to ALC personnel that continue to manage the remaining loan portfolio. It is expected that the majority of the remaining one-time charges will be incurred during the first quarter of 2022.