Fort Worth bank to lay off 130 employees, customers ‘not impacted’
Employees at a Fort Worth bank with 70 years of history will soon be out of a job.
Colonial Savings F.A., a privately held and federally chartered savings bank with six locations in Dallas-Fort Worth, said in a state filing that 130 people would be laid off starting Jan. 1.
What happened?
When businesses announce layoffs in Texas, it must notify the Texas Workforce Commission 60 days in advance by filing a “Worker Adjustment and Retraining Notice.” Colonial Savings filed a WARN notice on Wednesday.
Who will be affected?
According to the notice, obtained by the Star-Telegram, the layoffs will be concentrated at the bank’s headquarters at 2626A West Freeway, along the Trinity River south of the Cultural District.
The layoffs are “part of an organizational restructuring following the sale of Colonial’s mortgage servicing portfolio,” according to Graham Ashley, a Colonial spokesperson.
In 2023, according to a press release, Colonial Savings stopped writing new loans by shutting down its origination division and shifted to assisting customers with preexisting loans.
A Texas institution
Colonial Savings has been around for more than 70 years, founded by James DuBose in 1952.
DuBose grew the company by providing home loans to postwar Texas families.
In 2012, during the financial crisis, Colonial Savings received no federal government bailouts. Even in its worst year, during the Great Recession of 2008, the bank lost roughly $600,000 of its $900 million in assets, according to previous Star-Telegram reporting.
DuBose died in 2017 at age 93.
What happens next?
All employees who will be laid off have been notified, Ashley said, and they will receive transition assistance.
Ashley also said that there would be “no impact” to Colonial’s banking customers.
