Illinois-based First Mid Bancshares, Inc., will be closing 10 of its 63 branches next year. One of those is tied to its acquisition of LINCO Bancshares, Inc. and another location will be converted to a loan production office.
The move will cost First Mid about $2 million in non-recurring costs during 2021 and will yield about $1 million in annual savings starting in 2022.
“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,” said Joe Dively, chair and CEO of the $4.5 billion First Mid.
The Mattoon company agreed to acquire LINCO, Columbia, Mo., for $144.9 million in September with the closing anticipated in first quarter 2021.
It did not specify which branches it would be closing.
First Mid is the latest in a string of regional and national banks — including Chicago’s First Midwest — to trim their networks as COVID-19 continues to impact the economy.