Cincinnati-based Fifth Third Bancorp said Monday it will sell about 100 of its more than 1,300 branch locations plus dozens of other properties as part of a major network reorganization.
The move comes against the backdrop of a declining use of bank branches as more customers become comfortable or gain access to mobile banking platforms.
“Meeting the evolving preferences of how our customers interact with us is our top priority,” Kevin Kabat, Fifth Third’s vice chairman and chief executive officer, said in a statement. “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.”
The bank said it had $140 billion in assets as of March with operations in Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Missouri, North Carolina, Pennsylvania, Tennessee and West Virginia.
Fifth Third said it expects its new plans will result in $75 million to $85 million in charges in the second quarter, with an additional $6 million to $10 million in costs “primarily related to real estate contract terminations.”