Select Bank Sites at 42 Safeways in Colo. to Close

December 18, 2002

By Aldo Svaldi
Denver Post Business Writer

Safeway Select Bank locations across the United States, including 42 in Colorado, will shut down starting at the end of this month.

The Internet bank plans to keep nine Safeway store locations open across the state until the U.S. Treasury's Office of Thrift Supervision approves the closure, most likely early next year.

"It was absolutely a financial decision," said Susan McDougall, spokeswoman for Canadian Imperial Bank of Commerce, which ran Safeway Select through its U.S. subsidiary Amicus Federal Savings Bank.

Besides Safeway Select, Amicus ran another chain of grocery store locations at Winn-Dixie Stores.

McDougall said Amicus failed to meet financial expectations, but emphasized that regulators did not require the closure.

Canadian Imperial Bank of Commerce voluntarily asked for regulatory approval to transfer accounts and close Amicus, which had 177,000 customers and $832 million in deposits.

Customers received notices last week with details on the closure. One called the 9News Tipline wanting more information.

Accounts with less than $1,000 will be closed and any balances returned to customers after Amicus winds down.

E-Trade Bank, an online bank with $8.2 billion in deposits, has agreed to acquire certificates of deposit and savings and checking accounts with balances above $1,000.

E-Trade, best known for its online brokerage, has opened locations at Target stores and its customers have access to more than 100 ATMs in the state.

Safeway Select accounts will no longer take deposits after Nov. 30. Customers who direct-deposit checks will need to have their employer reroute them.

Canadian Imperial plans to sell off loans issued through Safeway Select, and borrowers will be notified when that happens.

Credit lines will be frozen Nov. 30 and must be paid in full by Dec. 31. Likewise, outstanding balances on Safeway Select Visa credit cards must be paid by the end of the year.

The Safeway Select locations, called pavilions, consist of Internet kiosks and automated teller machines with one or two support staff.

Approximately 70 to 80 workers in the state will lose their jobs as a result of the closures, McDougall said.

Denver was an early market for Safeway Select when it rolled out in 2000 and was second only to California in the number of locations.

Safeway Select customers can call 877-924-7800 to get more information about their accounts. They can also visit www.etrade.com

http://www.denverpost.com/Stories/0,1413,36%257E33%
257E999692%257E,00.html