Brief: LV escapes bank cuts

Monday, Dec. 21, 1998 | 11:59 a.m.

The bank said it would cut 220 jobs nationwide, close unprofitable branches and sell some supermarket branches.

Colonial has acquired two Nevada banks within the past year, Commercial Bank in Las Vegas and Interwest Bancorp in Reno. The acquisition of Commercial Bank gave Colonial three Las Vegas branches.

Colonial Chief Financial Officer Flake Oakley said the company still plans to add a branch in Las Vegas next year.

Based in Montgomery, Ala., Colonial said it expects fourth quarter earnings to be "significantly below" those of the same period last year as it absorbs a $30 million loss on the value of mortgage servicing rights and takes several one-time charges.

The bank, which has about $9.2 billion in assets, said it would have one-time pre-tax charges of $32 million from acquisitions, restructuring and other extraordinary costs.

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