Indiana-based First Commonwealth Bank announced yesterday that it will be closing approximately 20 percent of its branch locations, in a move that it expects will position it for future growth and increased investment in its digital banking options.
The particular branches that will be shuttered have not been revealed, but that information could come as early as next week. The reduction will be across the company’s footprint, not concentrated in a particular area, and should not have a significant impact on employment because of a hiring freeze that went into effect for the pandemic.
The announcement was part of the corporation’s quarterly earnings report, which showed income rebounding from first quarter earnings of $4.7 million to $23.9 million in the second quarter. First Commonwealth made about $4 million more in the second quarter of last year. For the first six months of 2020, the company earned $28.6 million, compared to $51.9 million in the first six months of last year.
The move to close the branches is part of what First Commonwealth dubs “Project THRIVE”. President and CEO T. Michael Price, said, “In light of the rapidly changing operating environment and uncertain economic outlook, we have implemented Project THRIVE with the express goal of emerging on the other side of this crisis stronger than ever.”
MIKE PRICE’S REMARKS ON THE SECOND QUARTER AND PROJECT THRIVE:
“Our performance in the second quarter is a reminder of the importance we play as a financial services organization and partner in the communities we serve. We assisted nearly 5,000 businesses secure over $600 million in PPP loans, which impacted approximately 80,000 jobs. At the same time, we originated a record $203 million in consumer mortgages in the quarter that helped roughly 800 customers finance a home.
In light of the rapidly changing operating environment and uncertain economic outlook, we have implemented Project THRIVE with the express goal of emerging on the other side of this crisis stronger than ever. First Commonwealth has a proven track record of executing on its initiatives and I am confident that Project THRIVE will benefit all of our long-term stakeholders.”
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