Byline in Chicago joins list of community banks closing branches
Byline Bancorp in Chicago is planning to close a fifth of its branches.
The $6.4 billion-asset company said in a press release Friday that it will shutter 11 of its 57 locations. The closings will begin on Dec. 31.
Byline said the closures will target overlapping branches, with most within two miles of another office.
Byline said it will record a $5.9 million charge in the fourth quarter tied to the move.
The closings should save Byline $4.3 million annually starting in 2021. Some of the savings will be reinvested to improve the company’s digital banking platform, including investment in electronic document signing, online account openings and digital small-business lending. Some funds will be used to renovate other branches.
“The changes we are making to our retail branch network reflect the accelerating adoption of digital banking channels by our customers that has occurred during the COVID-19 pandemic,” Alberto Paracchini, Byline’s president and CEO, said in the release.
“We believe the continued streamlining of our branch network and the increasing leverage we expect from our digital platform will result in improved efficiencies that will positively impact our level of productivity while continuing to provide our customers with the service they deserve,” Paracchini added.
Several banks have announced branch shutdowns recently, including First Commonwealth Financial in Indiana, Pa.; WesBanco in Wheeling, W.Va.; Mercantile Bank in Grand Rapids, Mich.; and Nicolet Bankshares in Green Bay, Wis.