Fifth Third Bancorp plans to close or consolidate about 100 branches and has abandoned plans for 30 new ones.
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. Locations set to close or be consolidated have yet to be identified.
The company has more than 40 branches in the Indianapolis area that employ almost 500 people.
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.
Cutting branches will save Fifth Third an estimated $60 million per year starting next year, the company said.