F.N.B. Corp. in Pittsburgh plans to close 21 branches as part of a broader effort to cut annual expenses by $20 million next year.
The $37.4 billion-asset company said in a press release Thursday that shifting customer preferences to digital banking will allow it to shutter more locations. F.N.B. noted that the number of customers using its mobile platform in September increased by 18% from 2019's full-year average.
Branch transaction volumes declined, the company added.
F.N.B. also said it had sold $487 million of indirect auto loans and increased its average non-interest-bearing deposits by more than 40% in 2020.
The company recently repaid $300 million in Federal Home Loan Bank borrowings at a weighted average effective cost of 2.1%, providing $6 million of future benefit to annual pretax income. It should take F.N.B. less than two years to earn back the $12 million prepayment expense.
Since July 1, the company has repaid $715 million of Home Loan bank borrowings at a weighted average effective cost of 2.24% and a weighted average remaining maturity of two years.
"As we move into 2021, the execution of our strategic initiatives is designed to strengthen capital levels and profitability through improving operational efficiency and enhancing net interest margin," Vincent Delie Jr., the company’s chairman, president and CEO, said in the release.
