Many community banks still do business in facilities that were built in a different generation and have become obsolete, says Bill Yeomans, president of Brookline Branch Services in Syracuse, N.Y.
“Some of these branches were built in the 1970s, but they no longer have the mortgage department on the second floor,” Yeomans says. “It’s more real estate than they need, and it becomes an operational headache.”
Subleasing is a good option to consider, say Kerstein, Yeomans and others. But one expert warned that the associated costs can mount and cut into the benefits.