Bank closes five branches
A local bank is shutting down five branches as part of a “cost-efficiency program.”
Grand Rapids-based Mercantile Bank Corporation said yesterday that its banking unit Mercantile Bank of Michigan will close the locations during the first quarter of 2016.
The move is anticipated to result in an annual pre-tax savings of nearly $2.7 million.
The five branches are located across Michigan: Ashley, Gratiot County; St. Louis, Gratiot County; Gull Road, Kalamazoo; Higgins Lake, Roscommon County; and M-30 in West Branch, Ogemaw County.
Robert Kaminski, EVP and COO of Mercantile Bank Corp., said the branches that will be closed have low traffic and deposit facilities, and the bank will be able to “fully serve the affected customers through its remaining branch network and electronic services.”
“We regularly examine our organizational structure and operations framework to identify and pursue efficiencies consistent with our mission of effectively serving our customers,” Kaminski said.
Mercantile Bank plans to maintain a network of 48 branches throughout central and western Michigan after the five branches are closed.
Mercantile Bank will try to relocate personnel who are impacted by the branch closings to other locations as “staff turnover and other opportunities provide.”
Due to the closings, the bank plans to record a pre-tax charge of nearly $0.9 million during the fourth quarter of 2015, which represents severance pay, leasehold improvement write-off and lease termination costs.
Mercantile Bank has $2.9 billion in assets.
The bank reported this month in its 3Q15 earnings that it had net income of $7.3 million, which was an increase from $5.9 million in the prior-year period.
It also declared a regular quarterly cash dividend of $0.15 per common share to holders.