Fifth Third Bank in the US is reportedly planning to close 44 branches in the Chicago region as a result of its $4.7bn acquisition of MB Financial.
According to a Chicago Tribune report, the bank will close the branches next month.
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Fifth Third spokesperson Larry Magnesen told the publication that the move will result into significant cost savings as well as eliminate branch overlaps.
The customers to be affected by this branch closures have already been informed, the spokesperson added.
The closures will include 19 Fifth Third branches and 25 former MB branches. Eight of these branches are located in Chicago, while the remaining offices are situated across the suburbs.
In May last year, Fifth Third Bancorp, the parent company of Fifth Third Bank, signed an agreement to acquire MB Financial. The $4.7bn acquisition was completed in March this year.
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By GlobalDataUnder the terms of the agreement, each MB Financial share was swapped for 1.45 shares of Fifth Third common stock and a cash value of $5.54.
The acquisition bolstered Fifth Third Bank’s middle market customer base in Chicago.
In April, after the completion of the merger, Fifth Third Bank announced plans to axe around 500 employees.
According to data filed with the Illinois Department of Commerce and Economic Opportunity, most of the redundancies will be in Rosemont.
As of 31 March this year, Fifth Third had $168bn in assets and 1,207 branches.
