Bank Mutual, which primarily operates in the US state of Wisconsin, is planning to close 10% of its branch network on May 16, 2015, reported BizTimes.com.
The strategic cost-cutting move, which has been announced in February 2015, will involve the closure of branches in Barron, Brillion, Cornell, Eau Claire, Green Bay, Menomonie and Peshtigo, the report said.
The closures will bring Bank Mutual’s total banking locations to 68 in Wisconsin and one in Minnesota, incurring one-time costs of $352,000, and will result in annual net cost savings of about $1.5m, which the bank intends to invest in technology.
The bank will sell the branch properties following the closures.
Bank Mutual CEO Dave Baumgarten said: "One of the issues that we have as an organization is we have a lot of relatively small branches. We’ve got a lot of branches, but a lot of them are relatively small and a lot of them are close together. In almost all cases we have another branch right in the same vicinity of the one that closed."
The lender, which has 701 employees, has offered all 32 affected employees comparable positions at nearby branches with some taking the opportunity to retire.