Midland States Bank announced late Thursday that it will close or consolidate 13 branches, or 20% of its branch network, by the end of the year.
The network has two branches in Bourbonnais (680 S. Main St. and 576 William Latham Drive), two in Bradley (980 N. Kinzie Ave. and 435 E. North St.) and one in Kankakee (255 E. Station St.), as well as locations in Beecher, Grant Park, Herscher, Manteno and Momence.
A news release from the company didn’t indicate which branches would be affected. Jeff Mefford, executive vice president for community banking for Midland, said in an email Friday that updated information on the closings would be released next week.
Midland will also vacate approximately 23,000 square feet of corporate office space by the end of 2020, and it estimates that the branch and corporate office reductions will result in annual cost savings of approximately $5 million, according to the news release.
In addition, Midland plans to renovate and upgrade five other branches to reduce the size to better serve retail and commercial customers. Those renovations and upgrades are expected to cost approximately $4 million. It estimates the changes will result in annual savings of approximately $1 million beginning in 2022.
“The actions announced [Thursday] reflect our ongoing efforts to evaluate all aspects of our operations for opportunities to enhance efficiencies,” President and CEO Jeffrey G. Ludwig said in the news release. “The ongoing COVID-19 pandemic has accelerated the shift toward digital banking and reduced the need for several of our smaller branches. Given the proximity of other branches, we believe that these adjustments to our branch network will have a minimal impact on our ability to provide customers with a convenient location to do their in-person banking.”
Midland States Bancorp, parent of Midland States Bank, completed its purchase of Homestar Bank and Financial Services in July 2019. The Homestar branches were converted to Midland States Bank in October of last year.
Midland purchased the former Centrue Bank in 2017.