A month after warning its U.S. electronic banking units were facing the axe, Canadian Imperial Bank of Commerce confirmed Thursday it will shut down the money losing operations.
The move affects CIBC National Bank and Amicus FSB.
"These operations were not meeting financial expectations," CIBC said in a statement.
The bank must still obtain regulatory approval for the closures.
Last month, CIBC warned it would incur a $525 million pre-tax restructuring charge in the current fourth quarter. About $375 million of the total stemmed from scaling back or closing all together the U.S. operations.
CIBC National Bank provides financial services under the Marketplace Bank brand, while Amicus FSB operates under the Safeway Select Bank brand.
Customers with balances of $1,000 or more on the date of closing will be transferred to ETrade Bank, subject to regulatory approval.
"Customer deposits are secure and remain at all times FDIC-insured up to the applicable limits," CIBC said.
Existing loan and credit card accounts will still be serviced "in accordance with their existing terms unless transferred to another financial institution or otherwise closed," the bank said.
Amicus has been losing about $60 million a quarter. It sells banking services through 185 supermarkets operated by Winn-Dixie Stores Inc. of Jacksonville, Fla., and another 161 operated by Safeway Inc. of Pleasanton, Calif. The move does not impact Amicus' far more successful operations in Canada. It is partnered with President's Choice Financial, a unit of grocery giant Loblaw Cos. Ltd.
Earlier this month, CIBC said it would close its bizSmart operation, a program of no-fee banking services for small businesses it launched two years ago.
CIBC reports its fourth-quarter financial results on Nov. 27.
The move affects CIBC National Bank and Amicus FSB.
"These operations were not meeting financial expectations," CIBC said in a statement.
The bank must still obtain regulatory approval for the closures.
Last month, CIBC warned it would incur a $525 million pre-tax restructuring charge in the current fourth quarter. About $375 million of the total stemmed from scaling back or closing all together the U.S. operations.
CIBC National Bank provides financial services under the Marketplace Bank brand, while Amicus FSB operates under the Safeway Select Bank brand.
Customers with balances of $1,000 or more on the date of closing will be transferred to ETrade Bank, subject to regulatory approval.
"Customer deposits are secure and remain at all times FDIC-insured up to the applicable limits," CIBC said.
Existing loan and credit card accounts will still be serviced "in accordance with their existing terms unless transferred to another financial institution or otherwise closed," the bank said.
Amicus has been losing about $60 million a quarter. It sells banking services through 185 supermarkets operated by Winn-Dixie Stores Inc. of Jacksonville, Fla., and another 161 operated by Safeway Inc. of Pleasanton, Calif. The move does not impact Amicus' far more successful operations in Canada. It is partnered with President's Choice Financial, a unit of grocery giant Loblaw Cos. Ltd.
Earlier this month, CIBC said it would close its bizSmart operation, a program of no-fee banking services for small businesses it launched two years ago.
CIBC reports its fourth-quarter financial results on Nov. 27.
