Chemical Bank plans to close or consolidate 16 offices this year throughout Michigan as part of a broader move to trim expenses.
President and CEO David Ramaker announced the move this week in a conference call to discuss quarterly results.
The planned branch closings and consolidations aim to increase “the efficiency and our retail delivery network as we adapt to the changes in the way our customers interact with us,” Ramaker said.
Several banks have been trimming the size of the branch networks in recent years as digital and online banking grows quickly. In the past year, Chemical Bank closed 34 offices.
“We will continue to review the locations across our footprint to make sure that our branch distribution supports our future growth. While some of the initiatives will take longer than others to fully implement, we anticipate that most of them will be implemented by year-end,” Ramaker said.
Cost savings from the branch closings and consolidations “is roughly going to be” $1.5 million in 2017, he said.
Chemical Bank should announce the affected offices by late May, once customers are notified, said John Hatfield, senior vice president and director of marketing.
“We want to talk to the customers first,” he said.
The Midland-based Chemical Bank presently has 210 offices in Michigan, plus 37 in northeast Ohio and two in northern Indiana with total assets of $17.6 billion.
Parent company Chemical Financial Corp. on Tuesday reported net income of $47.6 million, or 67 cents per diluted share. That compares with net income of $47.1 million, or 66 cents per diluted, in the prior fourth quarter of 2016 and $23.6 million, or 60 cents per share, for the first quarter of 2016.