Chicago-based Byline Bank is consolidating six of its 44 full-service Illinois branches during the second quarter of next year to accommodate changes in customer behavior.
The announcement was made Friday by the bank’s holding company, Byline Bancorp, Inc. The holding company is expected to dispose of a real estate portfolio, including former branch locations and other properties, and reduce office square footage to accommodate current trends in remote working preferences.
These changes are expected to cost the bank holding company approximately $15 million through the first half of next year and generate approximately $5.3 million in annual cost savings. Customers are expected to continue to be served by other branches within the network and through digital banking.
“The strategic actions we are taking are the result of our continued focus to position ourselves to meet our customers’ current and evolving banking needs,” said Alberto J. Paracchini, president of the $6.7 billion Byline. “While we believe branches are, and will continue to be, an essential part of delivering banking services, we also recognize the need to continue to invest in our digital channels to adapt to the way customers want to conduct their banking with us. We expect to reinvest approximately 70 percent of the anticipated annualized cost savings into talent and technology that will further enhance our digital banking capabilities.”
Byline also has a branch in Milwaukee suburb Brookfield, Wis.