Metro Bank will be closing two of its 34 branches this summer, but bank officials said it has nothing to do with a handful of activist investors who claimed in 2014 that the bank has too many branches.
Bank spokeswoman Natalie Neyer said Metro will close its location at 1098 Haines Road in Springettsbury Township, York County, because it is losing a piece of the property to a PennDOT road construction and redesign project.
Of the bank’s six York County branches, the Haines Road location was its third-best performing branch in terms of deposits, according to statistics from the Federal Deposit Insurance Corp. It brought in about $68 million in deposits from July 1, 2013, to June 30, 2014. Its top bank in the county brought in $102 million in deposits.
The bank also will close its branch in Carlisle Commons, at 20 Noble Boulevard in the borough, so the bank can “efficiently and effectively” serve the Carlisle area from its branch at 65 Ashland Ave.
Neyer said the branches are less than 2 miles from each other.
According to the FDIC, the Carlisle Commons branch was the worst-performing of the bank’s eight Cumberland County branches. It had $24.9 million in deposits for the last fiscal year. Only two of the bank’s 34 branches had less for the time period.
Both branches will close June 30, she said.
In 2014, three large investors in the bank’s parent company, Swarata Township-based Metro Bancorp Inc., called for the company to sell or merge with another bank. Some of the investors said the bank’s model of having a high number of brick-and-mortar branches would hurt its long-term sustainability.
Neyer said the closures have nothing to do with those comments.
“(The York County closure) is the result of governmental action beyond the bank’s control regarding customer convenience and the (Cumberland County closure) is a result of Metro’s ongoing strategic planning process,” Neyer said in an email.