Northwest Bank will close about 20 percent of its branches this year.
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The bank, which is based in Warren in Warren County in western Pennsylvania announced on Monday that it plans to close 42 of its 205 full-service offices as well as one free-standing drive-through and one business office by the end of the year. The closings will take place between Dec. 14 and Dec. 18.
The bank has not publicly announced which locations will close.
The closings are based on changing customer behaviors and recognizing operating efficiencies, the bank said in a press release.
“Our customers’ banking preferences continue to evolve to favor a more digital banking experience and the COVID-19 pandemic has magnified and accelerated these preferences,” Ronald J. Seiffert, chairman, president and CEO of the bank said in a press release. “This branch optimization plan reflects our ongoing efforts to ensure we are well positioned in our industry to provide the community bank experience that is valued by our customer base while also enhancing our strong digital and mobile banking presence.”
With the planned closings, the company said it anticipates approximately $12 million in pre-tax costs, which are expected to be recognized during the second half of the year, and the annual reduction in pre-tax operating expenses beginning in 2021 are estimated to be approximately $13 million, the bank said in a press release.
Northwest Bank operates 205 full-service community banking offices and eight free standing drive-through facilities in Pennsylvania, New York, Ohio and Indiana.
Northwest Bank has 22 locations within 43.5 miles of Harrisburg with locations in Dauphin, Lebanon, Lancaster, York counties, according to its website.
The company added a number of new locations in the midstate last year when it merged with Mount Joy-based Donegal Financial Services Corporation, the holding company for Union Community Bank, which operated 14 branches in Lancaster County. After the merger Northwest would have had 20 branches in Lancaster county but, five of the branches in Lancaster County were consolidated bringing Northwest’s total in the county to 15 at the time.
Last year, officials at Northwest also marked 25 years as a publicly traded company by ringing the opening Nasdaq bell. The bank was founded in 1896.
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