The firm agreed to sell the branches to Syracuse, New York-based Community Bank, which operates about 200 branches in Pennsylvania, New York, Vermont and Massachusetts.
The transaction does not include accounts of Openbank, which is Santander’s digital bank, Santander said in a Wednesday (June 25) press release.
The transaction is expected to close in the fourth quarter, subject to regulatory approval and customary closing conditions, according to the release.
“As we grow our presence nationally, we are making refinements to our physical presence to reposition and optimize our footprint for the future,” Swati Bhatia, head of retail banking and transformation for Santander Bank and CEO for Openbank in the United States, said in the release.
The bank continues to invest in both its digital offerings and its physical branches, including the introduction of its new flagship model, Bhatia said.
Santander has more than 399 branches in the U.S., primarily in New England and Mid-Atlantic states, according to its website. It has 74 branches in Pennsylvania.
The bank launched Openbank in the U.S. in October, offering high-yield savings accounts, and Banco Santander Executive Chair Ana Botín said days later that it will be a full-service digital bank by the end of 2025.
It was reported at the time that Openbank was Europe’s largest digital bank in terms of deposits and that Santander was one of the few European banks with a retail presence in the U.S.
In May, Santander said that Openbank gained more than 100,000 customers in the U.S. during its first six months in the country and that the digital bank’s growth rate exceeded its expectations.
Santander said at the time that it planned to expand Openbank’s offerings to include certificates of deposit, payments and checking accounts and that it would continue to enhance its bank branches by exploring new formats and personalized experiences.
Community Bank said in a Wednesday press release that when it acquires the seven branches from Santander, all branches will remain open and all employees will be offered continued employment.
The bank said the acquisition will accelerate its expansion in Pennsylvania, where it is already establishing additional new branches.
