Mercantile Bank in Grand Rapids, Mich., plans to close five branches to cut costs.

The $2.9 billion-asset company said in a press release Wednesday that it plans to close the branches in the first quarter. Mercantile said it plans to record $900,000 in pretax charges to account for items such as severance payments, leasehold improvement writeoffs and lease termination costs.

The closings should save the company $2.7 million annually. Mercantile said it would aim to move displaced personnel to other branches as opportunities arise.

Mercantile will have 48 branches after the closings are completed.

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