Change is coming to a few local branches of Northwest Savings Bank as locations are consolidated to improve efficiency in face of merger expenses, decreased quarterly income and changing customer preferences.
Northwest Bancshares, the bank’s holding company, has announced plans to consolidate 24 offices into nearby locations and convert two full-service offices into drive-up only facilities by mid-year.
The Northwest bank on West Washington Street in Bradford is one of the two locations to be converted into a drive-thru only, and two branches in St. Marys will be condensed into one, according to Northwest Communications Manager Melanie Clabaugh.
Clabaugh clarified the Bradford office at 85 W. Washington St. will not close. “We’ll still offer services through the drive-thru. It will also have a depository ATM on site so customers can make cash and check deposits there 24/7 — and, we will keep the night drop there, too.”
She went on to explain, “The branch on West Washington is less than (a half mile) from our office at 33 Main St. They were very close together, so that’s why we made that decision.”
Northwest locations on Main Street and Foster Brook in Bradford will remain exactly the same, Clabaugh said, noting the other branch to convert to drive-thru is located in Warren.
“In St. Marys, the branch at 1379 Bucktail Road will be consolidated into our St. Marys main office at 39 S. St. Marys St.,” she related. “It’s the same kind of situation, three offices kind of close together there in St. Marys. There is also one in the St. Marys Plaza at 824 South St. Marys St., so we’ll be leaving two offices in St. Marys.”
None of Northwest Savings Bank locations in Potter and Cameron counties will be affected, according to Clabaugh. She said the other 23 offices to be consolidated are located throughout Northwest’s footprint, spanning Pennsylvania, New York, Ohio and Maryland.
In recent years, Northwest has invested heavily in alternative delivery channels such as online and mobile banking, depository ATMS and automated telephone banking which enable customers to transact business outside of the branch and beyond normal business hours.
As a result, the number of transactions conducted in offices has significantly decreased over the past several years, creating what the company is calling “an opportunity to improve operating efficiency.”
It is to this end, and based on changes in customer preferences, that Northwest seeks to consolidate, according to company officials. They state associated expenses for the changes will be around $5 million and incurred during the first half of this year with annual reduction in pre-tax operating expenses beginning in 2017 — expected to be between $5 and $6 million.
