American Founders Bank lays off 11 employees

ssloan@herald-leader.comMarch 19, 2013 

Lexington-based American Founders Bank laid off 11 of its nearly 80 employees last week.

"Like any company out there, we're just trying to make sure we operate as smoothly and efficient as we possibly can," CEO Barry Brauch said.

The 11 affected employees, who will receive severance packages, all worked in behind-the-scene headquarters operations, Brauch said. He attributed their layoffs to the bank upgrading its technology for "structural changes."

"It didn't really affect branches or customer service," he said. "We want to keep people out there with the customers, so we need to be as efficient from the back-office perspective as we can."

The company decided late last year to close its Southland Drive branch and sell another in Shelbyville to focus more on business customers and better embrace technology.

The company's lease on the Southland Drive branch was up, and Brauch said at the time that it made sense to close the branch because those customers also tended to use the company's three other branches: in downtown, Tates Creek and Palomar. The bank also has two branches in Louisville.

Brauch said Monday that the bank has not seen many complaints from customers because of the Southland Drive closing.

"The traffic has increased at the Palomar location a lot," he said.

Scott Sloan: (859) 231-1447. Twitter: @HeraldLeaderBiz.

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