Fifth Third Bancorp plans to close or consolidate about 100 branches and has abandoned plans for 30 new ones.
The Cinncinnati-based banking company did not release information about specific closings or how the cuts will affect its different markets, including Chicago. The closures and consolidations, expected to be finished by mid-2016, will affect nearly 8 percent of its branch offices.
The changes will cost the company between $75 million and $85 million in impairment charges during the second quarter. There will also be up to $10 million in other costs related to real estate contracts. The company had acquired property for its planned branch expansion.
“This plan reflects the continued progression of our work on providing an integrated customer experience,” said CEO and Vice Chairman Kevin Kabat. “Meeting the evolving preferences of how our customers interact with us is our top priority.”
The company has been focusing on improving its mobile banking options and is tailoring its branch network with those improvements and changes.
As of March 31, the Cincinnati company had 1,303 full-service banking centers and 2,637 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina.
Contributing: Bill Ruminski