First Midwest Bancorp in Itasca, Ill., plans to close branches and sell unwanted real estate as customers shift to online banking.
The $9.8 billion-asset company said Friday that it will close four branches and sell 12 shuttered branches during the first quarter. It also plans to sell seven land parcels it had previously acquired for potential retail expansion. It did not disclose the locations of the branches or land lots.
The moves will result in about $3.6 million of yearly pretax savings. First Midwest will record a $5.1 million after-tax valuation charge for the property sales and branch closings. The charge will reduce fourth-quarter earnings by 7 cents a share.
First Midwest's decision was based on "significant investment in the enhancement of our mobile and online delivery channels and evolving consumer preferences," Michael Scudder, its chief executive, said in a press release.
First Midwest also said it will open two branches in the first quarter, one in downtown Chicago and one in Naperville, Ill.
First Midwest made a series of acquisitions in the second half of 2015, which pushed it toward the $10 billion regulatory threshold.