Santander Bank has signed an agreement to divest seven branches in Pennsylvania, the US, as it continues its transformation into a national, digital-first bank.

The retail and commercial bank has agreed to sell the branches to Community Financial System’s subsidiary Community Bank.

The branches involved in the transaction are situated in Allentown, Bethlehem, Coopersburg, Easton, Emmaus and Whitehall. All the branches will remain open and both the firms are offering continued employment for all staff.

The transaction does not include accounts of Openbank, which is Santander’s digital bank that has accumulated more than $4bn in deposits and serves over 100,000 customers since its debut in late 2024.

Santander Bank head of retail banking & transformation and CEO for Openbank in the US Swati Bhatia said: “As we grow our presence nationally, we are making refinements to our physical presence to reposition and optimize our footprint for the future.

 “We are investing in our branches, introducing new state-of-the art formats such as our new flagship model. The investments we are making in both digital and physical will help ensure Santander is best positioned to deliver for our customers for years to come.”

The transaction is expected to close in the fourth quarter of this year, subject to regulatory approval and customary closing conditions.

The acquisition is a significant step in Community Bank’s de novo expansion strategy within the Greater Lehigh Valley, bolstering its commercial and consumer lending footprint.

With this deal, Community Bank will increase its total retail locations in Greater Lehigh Valley to 12.

Community Bank expects to assume around $600m in deposits and purchase around $33m in branch-associated loans. With more than $16bn in assets, Community Bank operates around 200 customer facilities in Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts.