We are considering closing one of our branches every Thursday, but our other branches in the area would remain open during their regular business hours. Are we required to follow the Promissory Note and Bank Holiday Act’s requirements for regular bank closings if we are closing only one of our branches on Thursdays? Are there any other applicable state laws that we should consider?

Yes, we believe your bank must follow the procedures in the Promissory Note and Bank Holiday Act for regular closings on a day other than Sunday, even when closing only one branch.

Although the Act does not specifically mention branches, we have previously discussed this law with a representative of the Illinois Department of Financial and Professional Regulation (IDFPR), and they said the agency’s position is that the Act’s requirements apply to branch closings. Consequently, we believe you will need to follow the Act’s required procedures: (1) adopt a board resolution authorizing the branch’s Thursday closure, (2) record an officer-certified copy of the resolution, (3) publish the resolution in a county-wide newspaper once each week for three successive weeks before the closure, and (4) submit evidence of the newspaper publication to the IDFPR.

We are not aware of any other state laws expressly addressing the closing of a single branch for an additional day, but we believe it would be prudent to notify your customers in advance and to review your account agreements for any relevant customer notification requirements.

Additionally, we note that if your bank is subject to the federal Community Reinvestment Act (CRA)’s service performance test, a change in hours can raise issues in some instances. One factor in a bank’s CRA service performance rating is whether its services, “including, where appropriate, business hours,” vary in a way that inconveniences customers in a bank’s assessment area. Consequently, you may wish to document your reasons for making the contemplated changes, although you are not required to do so.

For resources related to our guidance, please see:

Promissory Note and Bank Holiday Act, 205 ILCS 630/17(a) (“The following days shall be legal holidays in the State of Illinois upon which day a bank may, but is not required to, remain closed: . . . From 12 o’clock noon to 12 o’clock midnight of each Saturday shall be considered a half holiday. In addition to such holidays and half-holidays, a bank may select one day of the week to remain closed, as provided in subsection (b) of this Section.”)

IDFPR 2022 Bank Holiday Schedule (“In addition to the holidays cited above, banks are authorized to close at 12:00 noon on each Saturday and all day on Sunday. A bank may also select one additional day of the week to remain closed by following the procedures outlined in Section 17(b) of the Promissory Note and Bank Holiday Act [205 ILCS 630/17(b)].”)

Promissory Note and Bank Holiday Act, 205 ILCS 630/17(b) (“Any bank doing business within this State may select any one day of the week to remain closed on a regular basis upon adoption of a resolution by the board of directors of such bank designating the day selected and upon filing and publishing a copy of such resolution as hereinafter required. Any such resolution shall be deemed effective for the purpose of this Section only when a copy thereof, certified by an officer having charge of the records of such bank, is filed with the Recorder of the county in which such bank is located and published once each week for 3 successive weeks in a newspaper of general circulation in such county. Such publication shall be accomplished by, and at the expense of, the bank, and the bank shall submit to the Commissioner of Banks and Real Estate such evidence of the publication as the Commissioner shall deem appropriate. Any such selection shall remain in full force and effect until a copy of the later resolution of the board of directors of such bank, certified in like manner, terminating or altering any such prior selection shall be filed and published in the same manner as such prior resolution.”)

FDIC CRA Regulations, Appendix A to Part 345 – Ratings, Part (b)(3)(ii)(C) (“The FDIC rates a bank’s service performance ‘high satisfactory’ if, in general, the bank demonstrates: . . . Its services (including, where appropriate, business hours) do not vary in a way that inconveniences its assessment area(s), particularly low- and moderate-income geographies and low- and moderate-income individuals. . .”)