Net Branch Shuts Down

The bank will continue to make mortgage loans, President, Chairman and CEO Joe Williams told MortgageDaily.com.

But the net branch model no longer fits with Synergy’s long term plans, Williams said. The company began a restructuring in 2003 and has been closing net branches ever since.

“For some people [net branching] works great,” Williams said. “Obviously we think the slowdown in production happening now will continue in 2006 and 2007. We just feel more comfortable with the more standard retail operation as opposed to the net branch format.”

Williams said at one time the company had more than 40 net branches, mostly in the northeast. Though Synergy is based in Waco, Texas, the last six branches were all located outside of the state, he said.

All of the branches have been “shut down, sold or allowed to relocate to another net branch,” Williams said.

The fate of employees who worked in the net branches “were totally at the discretion of each branch manager,” he said.

Several employees moved to other companies when the branches were merged into other operations, Williams said, though he did not offer specifics on the number of employees who had worked in Synergy’s net branch business.

Williams would not discuss any financial aspects of the decision or how it will impact the company. He did say Synergy Bank will continue to make mortgage loans but that segment of the business is “a local and relatively small retail mortgage” operation.

According to Synergy Mortgage’s Web site, it was founded in September of 2001 at the height of the home buying and refinancing boom. At one the time the company was licensed to do business in 33 states.