A massive Texas bank now closes branches and begins layoffs, part of a plan to reduce its expenses according to its CFO.
Dallas-based Comerica eliminated roughly 250 positions and closed 26 branches in the fourth quarter, CFO Jim Herzog told analysts last week.
“To enhance colleague efficiency and key decision makers close to our customers, we are streamlining our management structure and eliminating select roles,” Herzog said on an earnings call Friday.
The remainder of the cuts are connected to branch closures, he said.
As a regional bank, Comerica occupies a unique niche within the banking industry, combining a number of “big bank” products and services with a more localized and personalized touch reminiscent of community institutions.
The layoffs cost Comerica $25 million in severance charges, which Herzog said were “intended to enhance future earnings power and create capacity for investment.”
Dubbing the eliminations “expense re-calibration efforts,” Herzog said the bank is now better positioned to enhance its funding base, revenue mix, capital efficiency and risk management framework.
A bank spokesperson told The Dallas Morning News that 28 of the 250 layoffs were based in the Dallas area and were primarily non-customer-facing.
While the spokesperson didn’t provide details as to where branch closures occurred, none were in the bank’s home market of Dallas-Forth Worth, they said.
“We will continue to manage expenses closely, which will ultimately create capacity for investments that will benefit our customers,” the spokesperson said.
In all, Comerica aims to reduce expenses this year by $45 million, which the bank expects will grow to $55 million in savings in 2025.
Part of that savings will come from optimizing its product offerings, Herzog said, to enhance capital efficiency and returns; and from reviewing and renegotiating select contracts.
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Also Read: A Massive US Bank is Now Closing Credit Cards
Other Banking News Today
A US bank is now abruptly freezing accounts and money after a customer reported an incident involving a check deposit.
A Chase customer is reporting the bank froze their account and advised their funds would be on hold for 2-3 years while they ‘verify’ a check.
Going by the name Nooj, they explained on Reddit that they had deposited a check from their uncle and saw their account was frozen the next.
Nooj called Chase and was told the entire account was locked due to check holds, and they were advised to call back in a week to resolve the matter.
But when the time came, Nooj was told the bank account was still frozen and that they would have to once again call back for an update.
Unfortunately, on the third phone call to Chase, they were told the account would be closed in just four days if the matter wasn’t resolved, reports The-Sun.
“During the attempt to verify the check, I was informed that there was no associated phone number for my uncle in the Chase system, rendering verification impossible,” Nooj said.
“I discovered that the funds would be held for two to three years and, if not verified, sent to the state.
Despite my pleas, the representative provided no steps for verification and claimed there was nothing they could do.”
They said they were never informed that the check had to be verified until after the account was frozen and that Chase waited until after the check cleared to notify them that it would be held.
Nooj said they gave Chase their uncle’s phone number, but the bank said it wasn’t verified in its system.
“I now face months without access to my funds, causing significant stress, inconvenience, and financial hardship.
The lack of transparency in this process is deeply concerning,” they said.
“I have made upward of 20 calls, visited the branch, and filed a complaint with the CFPB in an attempt to find a path to verify the check.
“Every response I receive is that there is nothing they can do, and until they have a verified number for my uncle, they will continue to hold the funds. (Though they can’t tell me how to get his number verified).”
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Also Read: A US Bank is Now Denying Customers Access to Money
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