Fifth Third Bank is agreeing to sell 17 branch locations in the greater Pittsburgh area to First National Bank (FNB) of Pennsylvania. The deal amounts to approximately $383 million in retail and private banking deposits.
Fifth Third says the deal is "in line with Fifth Third’s broader branch consolidation plans announced in June."
In an email to WVXU, a company spokeswoman says, "Our aspiration is to be a significant market share player in each of our markets. We determined in Pittsburgh that the investment required to achieve that, in the near term, was too high relative to our other strategic priorities for Fifth Third. And this sale – and these locations – are part of our previous announcement that we would sell or consolidate approximately 105 branches."
The Cincinnati-based bank says it "remains committed to its commercial coverage in Pittsburgh, as well as its wealth management, institutional services and mortgage origination activities in the market after the completion of the sale."
The deal is slated to close early next year.
Fifth Third entered the Pittsburgh market in 2004.
In a separate statement, FNB President Vincent J. Delie, Jr. says, "We are excited to announce a transaction that enhances our comprehensive retail delivery channel and improves efficiency within FNB's largest region. Additionally, the low-cost core deposits will strengthen FNB's ability to pursue organic growth opportunities."
