BB&T to close 28 local branches as part of 2 acquisitions

BB&T Corp. will consolidate 28 branches as part of its recently-completed $1.8 billion acquisition of National Penn Bancshares.

The bank said there would be no job loss as a result of closing the branches, which will take place during the scheduled systems conversion in July. The North Carolina-based BB&T (NYSE: BBT) said most of the affected employees would be relocated to the branches receiving the deposits. It also said most of those are situated less than a mile away.

The branches being closed are in locations where there is an overlap from facilities BB&T acquired when it entered the Philadelphia area market last August as part of the $2.5 billion acquisition of Susquehanna Bancshares. Berks (6), Chester (5), Lancaster (4), Montgomery (3) and Luzerne (3) counties have the largest number of shuttering locations.

Most (17) are National Penn locations being consolidated into BB&T (legacy Susquehanna) branches, with 10 BB&T branches being received by National Penn locations. One BB&T branch will be consolidated into another BB&T site.

BB&T said when the National Penn deal was announced Aug. 17 that it planned to shutter roughly 25 locations but had previously only identified six.

It has said it expects the National Penn deal to cost about $100 million before taxes but result in $65 million in savings a year, or approximately 30 percent of National Penn’s non-interest expenses. That figure is quite similar to the 32 percent of Susquehanna’s non-interest expenses cut after that deal was announced.

A portion of the expense reductions will come from the branch closures, but BB&T also said there will be savings from back-office personnel layoffs, though it has offered no specific number. Dozens of Susquehanna employees have been laid off since that deal closed Aug. 1.

Susquehanna gave BB&T 240 branches in Pennsylvania, New Jersey and Maryland, 58 of which are in the immediate Philadelphia region. National Penn had 124 branches, with 44 in this immediate region and a large swath in Lehigh and Berks counties.

Factoring in the branch consolidations, BB&T will have roughly 90 locations in greater Philadelphia and is the seventh-largest deposit taker.

Here is the full list of affected branches by county:

Berks — Wyomissing, Reading, Morgantown, Boyertown, Temple

Chester — Elverson, West Chester (3), Exton, Phoenixville

Montgomery — Abington, Pottstown. Wynnewood

Lancaster — Quarryville, Intercourse, Mount Joy, New Holland

Luzerne — Hazelton, Sugarloaf, Hazel

Lehigh — Allentown, Whitehall

Centre — State College (2)

Burlington — Roebling

Delaware — Wayne

Schuykill — Pottsville

Source: Philadelphia Business Journals