Bank plans to consolidate or sell 100 branches
A bank with a major presence in the region is planning to consolidate or sell about 100 branches and about 30 properties purchased for branch expansion.
Fifth Third Bancorp in Cincinnati announced the “changes to its branch network” today as it “works to improve efficiency, competitiveness and the quality of its customers’ experience.”
At this time, the bank does not have further details on specific locations or regions where the consolidations or property sales will take place.
Kevin Kabat, vice chairman and CEO of Fifth Third, said the plan reflects the continued progression of the bank's work on providing an integrated customer experience and is based on significant changes in consumer demographics and customers’ preferred channels of banking.
“Technology continues to impact our service delivery and revenue-generation tactics and strategies,” Kabat said. “We have been very successful in growing our market share in our footprint. Meeting the evolving preferences of how our customers interact with us is our top priority.”
Fifth Third’s plan is a result of its regular evaluation of customer preference and usage patterns across its multi-state network.
“Optimized” branch network
“Over the past several years, we have made significant improvements to our mobile banking options and our sales and staffing models and plan to tailor our branch network in concert with these changes,” Kabat said. “We continue to believe an optimized branch network plays a significant role in meeting the financial needs of our customers and in delivering an integrated customer experience.”
Fifth Third said it expects to incur about $75-$85 million in non-cash impairment charges, which will be recognized in the second quarter of fiscal year 2015, as well as $6-$10 million in other costs related to real estate contract terminations.
Fifth Third anticipates the plan will result in an annualized reduction of roughly $60 million in ongoing operating expenses, which are expected to be fully executed by mid 2016.
Fifth Third Bank
As of March 31, Fifth Third Bancorp has $140 billion in assets and operates 15 affiliates with 1,303 banking centers in 12 states: Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina.