Byline Bank shaves another 8 branches from a network that once had 90 locations – Consumer News

on May17

16 May 2018 | 6:24 pm

Look around and anyone can see that the long-predicted demise of the bank branch hasn’t occurred yet in the Chicago market. But one local bank hasn’t been shy to close underperforming locations, and it’s at it again.

Chicago-based Byline Bank will shutter eight locations next month, trimming its area-wide network to 52. Byline Bank had 90 locations less than three years ago before it embarked on a major cost-cutting initiative, most of which took place in 2015 and 2016.

The majority of the past closures have been suburban, but this time city branches are the focus. Seven of the eight are in Chicago, with the other one in north suburban Niles, a spokeswoman says.

The city neighborhoods where branches are closing are Mount Greenwood (3435 W. 111th St.), Noble Square (1600 W. Chicago Ave.), Avondale (2758 W. Belmont Ave.), Lincoln Park (2335 N. Clark St.) and Dunning (6500 W. Irving Park Road).

Drive-up facilities in Rogers Park and Heart of Chicago also are closing.

The Lincoln Park decision is particularly noteworthy in light of the intense competition in that area. The 60614 ZIP code in which Byline’s branch is located was home to 31 branches of 13 banks as of June 30, 2017, according to Federal Deposit Insurance Corp. data. Ten of the 13 have multiple branches there. JPMorgan Chase, the largest retail bank in Chicago, alone has six branches there.

Twenty years ago, by contrast, there were 20 branches in that ZIP code.

Rosemont-based Wintrust Financial, the fifth-largest bank in the Chicago market by deposits, opened a new DePaul University branch in the 60614 ZIP code last year.

Byline itself has another two remaining in 60614, so it’s not as if customers have no other nearby choices.

The wonder, really, is that more banks don’t follow suit, given that fewer customers are visiting branches and doing more basic banking remotely. Lincoln Park is possibly the city neighborhood outside of downtown Chicago with the most bank branches. The main Old Town ZIP code, 60610, is home to 21 branches. The primary Lakeview ZIP of 60657 has 19.

Byline’s closures are expected to produce annual savings of $2 million, CEO Alberto Paracchini told analysts April 27.

“We continue to evaluate the performance of our branches, given changing consumer behavior and preferences in order to make informed decisions about our footprint,” Paracchini said. He said these eight locations “we felt could be consolidated with minimal impact to customer service levels and overall convenience.”

Even after the closures, Byline will have the fifth-largest branch network in the city of Chicago. It had $3.5 billion in assets as of March 31 and will grow by another $1 billion once its acquisition of the parent of Evanston’s First Bank & Trust closes. That’s expected later this month.
More:
Feds push rare $1M fine against owner of failed Chicago bank

Is big better in banking? Survey says no.
A decade later, (some) banks are paying again for your money



Previous postObama Visits Chicago Day Before Presidential Center Goes to Planning Commission Next postChicago Police Expanding Bike Patrols as Tourist Season Kicks Into Gear

Chicago Financial Times

Every effort has been made to accurately represent this web site or product and its potential. Even though this industry is one of the few where one can write their own check in terms of earnings, there is no guarantee that you will earn any money using the techniques and ideas in these materials.


Chicago Financial Times


Copyright © 2018 Chicago Financial Times

Updates via RSS
or Email