Santander to sell seven Pennsylvania branches to Community Bank

Community Financial System

25/06/2025 13:45

June 25 (Reuters) - Santander SAN.MC said on Wednesday it had agreed to sell seven branches in the Allentown, Pennsylvania area to U.S.-based Community Bank CBU.N as the Spanish lender pivots towards becoming a digital-first bank in the United States.

Santander launched Openbank in the U.S. market late last year with a high-yield savings account offering, and aims to have a full-service digital bank in the country by the end of 2025.

In a separate statement, Community Bank said it will pay Santander a deposit premium of $48 million for assets and liabilities of the branches.

The New York-based lender said it expects to assume about $600 million in deposits and purchase nearly $33 million in branch-related loans.

The transaction is expected to close in the fourth quarter of 2025.

 (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Leroy Leo)

 ((ArasuKannagi.Basil@thomsonreuters.com;))