In a direct bid to generate some $20-million in annualized savings, Chemical Financial Corporation, operator of Chemical Bank branches all over Michigan, has informed the Securities & Exchange Commission that they will eliminate about 7-percent of their workforce and close and consolidate 25 more branches in the final quarter of the year.
In a mid-week filing with the SEC, Chemical also announced that Chief Operating Officer of Business Operations Len Amat will depart his position at the end of the month, effective September 30, 2017. Amat was a key player for many years for the bank in Michigan’s Great Southwest before being promoted to corporate headquarters in Midland, Michigan.
The 8-K filing with the SEC says in part, “On September 7, 2017, Chemical Financial Corporation initiated a restructuring effort that includes an approximately seven percent net reduction in total employees, as well as certain branch consolidations. These actions were guided by a focus on enhancing operating efficiency and achieving the long-term growth prospects that were established as part of Chemical’s most recent merger performance target. These actions further provide Chemical the ability to reallocate resources to best serve our communities and growing customer base. Impacted staff have been notified and departures are expected to be largely complete by September 30, 2017.”
Amat and nearly 230 colleagues will depart by the end of the month, providing Chemical with up to $20-million in annualized cost savings, which the bank says “are expected to evident” in the fourth quarter.
The closure or consolidation of 25 branches comes on top of the previously announced 13 branches targeted for consolidation and closure in the third quarter of 2017.
When complete, Chemical will have reduced to 211 total branches. While the bank has internally identified which branch offices will consolidate into other nearby locations, the company is keeping that information close to the vest, not yet ready to identify them publicly.
Bob Burch is Community President in Southwest Michigan, but he is out of the office until the first of the new week, and has been unavailable for comment or to answer if any tri-county branches in Berrien, Cass or Van Buren Counties will be impacted by the consolidation.
Speculation is that much of the consolidation will be where Chemical overlaps with Talmer Bank branches acquired in their merger last year to the tune of $1.6-billion.
The SEC filing also reports that Chemical will depart the title insurance services business going forward. That was, at best, a break even performer financially for the bank holding company and will be jettisoned in the restructuring plan.
The use of the Chemical Bank Benton Harbor branch photo accompanying this story is for illustration purposes only, and is not intended to indicate whether that branch is impacted by Chemical’s announced actions.
