Mid Penn Bancorp, Inc. announces retail consolidation plan

Rhea-AI Summary

Mid Penn Bancorp, Inc. has announced the consolidation of three branches in Pennsylvania effective December 31, 2020, as part of its strategy to adapt to changing consumer preferences. The affected locations are in Malvern, Pillow, and Vanderbilt. Despite the closures, customers will still have access to nearby branches and enhanced online services. The consolidation is expected to yield annual savings exceeding $150,000, with costs recouped by Q3 2021. No layoffs are anticipated, and the company aims to maintain service quality across its network.

Positive

• Annual savings exceeding $150,000 from branch consolidation.
• No layoffs expected; employees will continue to provide service at other locations.
• Enhanced technology services align with consumer preferences for online banking.

Negative

• None.

MILLERSBURG, Pa., Sept. 21, 2020 (GLOBE NEWSWIRE) -- Mid Penn Bancorp, Inc. (“Mid Penn”) (NASDAQ: MBP), the parent company of Mid Penn Bank (the “Bank”) has announced the planned consolidation of three branches in the Bank’s retail network effective December 31, 2020. The consolidation, which affects its Malvern (Chester county), Pillow (Dauphin county), and Vanderbilt (Fayette county) locations, is part of Mid Penn’s strategy to optimize the delivery of banking services and in response to shifting consumer preferences.   Customers will continue to have access to nearby branches as well as a robust set of technology-based services.

“As we prepare for new days ahead in our industry, we are continually evaluating how we deliver our brand of community banking to the customers and communities we serve. We are committed to providing easy access to services when and where our customers expect them.   As we watch foot traffic in our traditional brick-and-mortar offices decline, we see sharp increases in adoption of on-line and mobile delivery channels in both our consumer and commercial customer bases.   The ability to effectively bank anywhere and at any time is now expected to be part of our standard delivery,” Mid Penn President and CEO Rory Ritrievi said in a statement.

The Bank expects no lay-offs or job losses as a result of this consolidation; employees at the impacted branches will continue to deliver best in class service at other locations in the region.   The company anticipates annualized savings in excess of $150,000 and anticipates recouping the one-time costs associated with the initiative by the third quarter of 2021.

About Mid Penn Bancorp Inc.
Mid Penn Bancorp Inc. (NASDAQ: MPB), headquartered in Millersburg, Pennsylvania, has been serving the community since 1868. Mid Penn operates retail locations throughout the state of Pennsylvania and total assets of more than $3 billion. Its footprint includes Berks, Bucks, Chester, Cumberland, Dauphin, Fayette, Lancaster, Luzerne, Montgomery, Northumberland, Schuylkill and Westmoreland counties. The bank offers a comprehensive portfolio of products and services to meet the banking needs of the communities it serves. To learn more about Mid Penn Bank, visit www.midpennbank.com.

FAQ

What branches is Mid Penn Bancorp consolidating?

Mid Penn Bancorp is consolidating branches in Malvern, Pillow, and Vanderbilt, effective December 31, 2020.

What savings does Mid Penn Bancorp expect from the branch consolidation?

Mid Penn Bancorp expects annual savings exceeding $150,000 from the branch consolidation.

Will there be job losses due to the branch consolidation at Mid Penn Bancorp?

No layoffs or job losses are expected as a result of the branch consolidation.

When does Mid Penn Bancorp expect to recoup the costs associated with branch consolidation?

Mid Penn Bancorp anticipates recouping the one-time costs associated with the consolidation by the third quarter of 2021.