First Mid in Illinois discloses plan to close branches

First Mid Bancshares in Mattoon, Ill., is the latest banking company to announce plans to close branches.

The $4.5 billion-asset company said in a press release Friday that it will close 10 of its 63 branches. One of the branches will be converted into a loan production office.

The closures are expected to take place next year.

“Our customers’ preferences have accelerated towards digital banking and we can consolidate these lower usage branches into our other locations in close proximity, while still providing the community bank experience our customers expect,” Joe Dively, First Mid’s chairman and CEO, said in the release.

First Mid said it expects to incur $2 million in one-time costs tied to the effort, though it should save the company $1 million annually beginning in 2022.

Several banks have announced plans to close branches in recent months. Berkshire Hills Bancorp in Boston said earlier this week that it would sell eight branches and close 16.

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