BB&T set to close 25 branches as part of National Penn deal
BB&amp;T's $1.8bn acquisition of National Penn Bancshares in Allentown, which was reported in this briefing earlier this week, will result in the closure of approx. 25 branches, according to reports. The closure of branches will depend on individual performance and location.
BB&T in Winston-Salem, N.C., plans to close 25 branches as part of its integration of National Penn Bancshares in Allentown, Pa.

The $210 billion-asset BB&T on Monday agreed to buy the $9.6 billion-asset National Penn for about $1.8 billion. BB&T said that it plans to cut National Penn's annual noninterest expenses by $65 million, or 30%.

Closing 25 branches is "very attainable," Kelly King, BB&T's chairman and chief executive, said during a conference call Tuesday to discuss the deal. "Remember, there is overlap" with branches BB&T gained from its recent purchase of Susquehanna Bancshares in Lititz, Pa., King added.

A undetermined number of job cuts should also be expected after BB&T evaluates "back-room activities," Ricky Brown, president of BB&T's bank, told the Allentown Morning Call. National Penn employs about 275 workers at its Allentown headquarters; another 200 people work at other area locations.

BB&T has already confirmed that it will dismiss most of a 21-person small-business lending team at Susquehanna as it cuts costs at the $19 billion-asset company.

BB&T will also reduce expenses in areas unrelated to personnel, Scott Fainor, National Penn's chief executive, said. Fainor is expected to remain at BB&T as a regional leader. BB&T also plans to make Allentown its regional headquarters, which Allentown Mayor Ed Pawlowski said will allow the city to remain a "major financial center."