Byline Bank Announces Continuation of Strategic Branch Consolidations
Byline Bancorp, Inc. (NYSE: BY) (the “Company” or “Byline”), the parent company of Byline Bank, today announced plans to optimize its branch network as part of efforts to accommodate changing customer behaviors while also recognizing operating efficiencies. Byline Bank plans to consolidate 11 of its 57 full-service offices, or approximately 20% of its branch network. Byline Bank will continue to service all its current markets and the consolidations target branches that overlap with other locations. Most of the impacted branches are located within two miles of another Byline Bank branch that will continue to operate within the respective market.
The 11 branch closures are scheduled to commence on December 31, 2020 and will result in a one-time charge of approximately $5.9 million. The Company anticipates annualized cost savings of approximately $4.3 million beginning in 2021, a portion of which will be utilized to increase Byline Bank’s investment in its digital banking platform and the continued renovation and upgrading of other retail branches.
Alberto J. Paracchini, President and Chief Executive Officer of Byline, commented, “The changes we are making to our retail branch network reflect the accelerating adoption of digital banking channels by our customers that has occurred during the COVID-19 pandemic. We are continuing to invest in technology that will further enhance our digital banking platform and enable us to respond to changing customer preferences, including adding electronic document signing, online consumer and small business account openings, and digital small business lending capabilities.
“Following the closure of the branches that will start on December 31, 2020, our retail branch network will be focused on those sub-markets that present the most significant growth opportunities and where a physical presence is most valuable to our new business development efforts. Given the proximity of other branches, our customers will still have convenient options when they have in-person banking needs. We believe the continued streamlining of our branch network and the increasing leverage we expect from our digital platform will result in improved efficiencies that will positively impact our level of productivity while continuing to provide our customers with the service they deserve,” said Mr. Paracchini.