News

Northwest Bancorp to close 24 bank branches

Written by Gary Haber/York Daily Record | Jan 29, 2016 8:23 AM
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Northwest Bancorp plans to close 24 of its 181 branches in its four-state territory. The company isn't saying at this point where the closings will occur. (Photo: Gary Haber)

Closings come as customers do more banking online, visit branches less

(Undated) -- Northwest Bancorp, the parent company of Northwest Bank, plans to close 24 branches across its four-state territory of Pennsylvania, Maryland, Ohio and New York.

The upcoming closings are expected to occur by mid-year, the company said in a news release, and come as customers visit branches less often as they do more of their routine banking on their smartphones and online.

"We have seen the way people interact with a bank change," Shawn Walker, Northwest's chief marketing officer, said in an interview Thursday.

Northwest hasn't yet said where the closings will occur because customers haven't yet been notified, Walker said.

The closings will occur across Northwest's four-state footprint, including its eastern region, which includes York, Dauphin, Lancaster and Lebanon counties, Walker said. Two other branches, whose locations have not yet been released, will be converted to drive-up only locations.

The branches slated to be closed are near other Northwest branches, so customers won't be impacted, Walker said.

The moves will cost Northwest an initial $5 million in the first half of 2016 and save the company between $5 million and $6 million annually starting in 2017.

Northwest, which is based in Warren County, has a 1.7 percent share of York County's banking market, according to the latest data from the Federal Deposit Insurance Corp. Its seven York County branches held just over $114 million in deposits as of June 30.

Northwest, which is based in Warren County, Pennsylvania, changed the name of its banking unit to Northwest Bank from Northwest Savings Bank last year.

*This article is part of a content-sharing partnership between WITF and the York Daily Record

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