Fifth Third Bancorp said Tuesday that it plans to close 44 branches, a cost-cutting move that follows its recent shutdown of more than 100 branches.
The Cincinnati-based bank expects to carry out the latest round of closures during the first quarter of next year. The locations of the affected branches were not disclosed. Fifth Third also plans to offload five parcels of undeveloped land that the firm acquired with the intent of building new branches.
Fifth Third, in a securities filing, attributed the new closures to "changing customer preferences."
The $142 billion-asset company estimated that it will record a noncash impairment charge of $25 million-$30 million and will incur $4 million-$6 million in restructuring costs.
Analysts at Sandler O'Neill welcomed Fifth Third's decision to close more branches but also said they were awaiting more details, including how much of the cost savings will be reinvested into mobile banking.
The branches to be closed account for more than 3% of Fifth Third's network. The company currently has offices in Ohio, Michigan, Florida, Illinois, Indiana, Kentucky, North Carolina, Tennessee, Georgia and West Virginia.
Since last year, Fifth Third has shed 105 branches, or roughly 8% of its total.
Shares in the company were down 1.7% in midday trading Tuesday, outpacing a broader sell-off in the stock market.
