Byline in Chicago to close six branches in 2022

Byline Bancorp in Chicago plans to close six branches and sell a portfolio of bank-owned real estate.

The $6.7 billion-asset company said in a press release Friday that it will also reduce its office space. 

The branch closures, which will take place next year, represent about 14% of Byline’s network. The real estate portfolio includes former branch locations and other properties.

Byline said it will record $15 million in charges tied to the effort. The moves should save the company $5.3 million annually. 

The company said that it expects to reinvest about 70% of the anticipated annualized cost savings into talent and technology to enhance its digital banking capabilities. 

"The strategic actions we are taking are the result of our continued focus to position ourselves to meet our customers’ current and evolving banking needs,” Alberto Paracchini, Byline’s president, said in the release. 

“While we believe branches are, and will continue to be, an essential part of delivering banking services, we also recognize the need to continue to invest in our digital channels to adapt to the way customers want to conduct their banking with us,” Paracchini added.