Fifth Third Plans to Consolidate or Sell 100 BranchesSteve Dickson
Fifth Third Bancorp, Ohio’s largest lender, will consolidate or sell 100 branches and 30 other properties and take an impairment charge of as much as $85 million in the second quarter.
The decision came after a regular review of “customer preferences and usage patterns,” the Cincinnati-based bank said Monday in a statement.
“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,” Chief Executive Officer Kevin T. Kabat said in the statement.
Fifth Third expects to spend as much as $10 million in other costs related to the move, primarily from terminating real estate contracts. The company forecast about $60 million in continuing cost savings by the middle of next year.
Fifth Third climbed 2.8 percent to $21.63 at 4 p.m. in New York, the most since February and the best performance in the 24-company KBW Bank Index. The lender has about 1,300 branches and 2,600 automated teller machines in a dozen states.
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