Fifth Third Bancorp in Cincinnati will close or sell about 100 branches=, or about 7% of its total branch network.
The $140 billion-asset company said in a press release Monday that it will also shed about 30 properties that had been planned for branches.
Fifth Third said it will record a non-cash impairment charge of $75 million to $85 million in the second quarter to cover the cost of the changes. Fifth Third will also incur $6 million to $10 million in other costs, largely tied to terminating real estate contracts.
The moves are expected to result in annual savings of about $60 million in operating expenses.
"Consumer demographics and our customers' preferred channels of banking are undergoing significant changes," Kevin Kabat, Fifth Third's vice chairman and chief executive, said in the release. "Technology continues to impact our service delivery and revenue generation tactics and strategies. We have been very successful in growing our market share in our footprint as the most recent FDIC data clearly shows, and we will continue to maintain the same focus going forward by optimizing the size and density of our branch network."
The branch closings and sales are expected to be completed by the middle of next year. Fifth Third did not identify the locations to be closed or sold.