Banking & Finance, Real Estate, and Retail

Bank closes six branches

January 23, 2015
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Independent Bank
Ionia-based Independent Bank operates branches across the Lower Peninsula. Courtesy Independent Bank

A bank is closing six branches and consolidating them into other locations in response to “changing transaction patterns” by customers.


Independent Bank Corporation, a bank holding company based in Ionia, said today that its board of directors and the board of directors of its subsidiary, Independent Bank, authorized the consolidations.

The move is expected to produce an aggregate, annual reduction in non-interest expenses up to $1.6 million and is part of the bank’s ongoing cost-reduction initiatives to improve operational efficiency.

The bank named the affected branches in its fourth-quarter and full-year earnings report for 2014: Bay City Broadway into Bay City Main; Croton into Newaygo; Kingston into Marlette; Ubly into Bad Axe; Unionville into Sebewaing; and Vermontville into Charlotte.

The consolidations are expected to be completed no later than April 30.

The bank operates branches across the Lower Peninsula of Michigan.

Based on the potential loss of customers due to the locations closing, the bank estimates a possible annual loss of revenue of approximately $0.3 million to $0.4 million and a one-time expense of roughly $0.3 million in the first four months of 2015, mainly due to severance costs for reducing staff.

William Kessel, president and CEO of Independent Bank Corporation, said the decision to close or consolidate a branch office is a very difficult choice and recognized it impacts customers and employees in that community.

“Branch transaction volumes are declining, while mobile and other electronic channels continue to experience greatly increased usage,” Kessel said. “It is necessary to continually evaluate our branch office footprint and make necessary adjustments in response to these changing transaction patterns. We are confident that neighboring branches, along with our many available electronic channels, will be able to serve our customers well.”


Independent Bank Corporation (Nasdaq: IBCP) reported net income of $3.9 million, or $0.17 per diluted share, for the fourth quarter, while it reported net income of $4.8 million in 4Q13.

The bank reported net income of $18 million, or $0.77 per diluted share, for the year ended Dec. 31, 2014, while it reported net income of $77.5 million for 2013.

The bank attributed the results from 2013 to an income tax benefit of $54.9 million.

The bank also cited today its continued improvement in asset quality, growth in loans, reduction in non-performing assets, growth in pre-tax earnings and implementation of several new technology-driven products.

“As we move into 2015, we recognize the importance of improving our performance even further,” Kessel said.

Independent Bank

Independent Bank Corporation was founded in 1864 as First Bank of Ionia.

It has total assets of $2.25 billion. 

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