Fifth Third cutting up to 100 branches

Fifth Third Bancorp plans to close or consolidate about 100 branches and has abandoned plans for 30 new ones.

The mass shutting means the Downtown Cincinnati-based regional bank is closing 7.7 percent of all of its retail branches or one out of 13. Bank officials say the move will save the company $60 million a year by mid 2016.

Bank officials say the move is part of an evolution as more consumers become more comfortable with conducting routine transactions via ATM and even mobile phone. The bank has been trimming and handful of branches annually for a few years, but officials conceded this cut was "significant."

Bank officials declined to discuss where they will cut offices, whether it mean trimming locations in Greater Cincinnati and Northern Kentucky, where Fifth Third has 130 branches – more than any competitor, or if the bank might retreat from entire markets like St. Louis, where they have just 10 branches.

The changes will cost the bank between $75 million and $85 million in impairment charges during the second quarter. There will also be up to $10 million in other costs related to real estate contracts. The company had acquired property for its planned branch expansion.

"This plan reflects the continued progression of our work on providing an integrated customer experience," said CEO and Vice Chairman Kevin Kabat. "Meeting the evolving preferences of how our customers interact with us is our top priority."

Bank officials say Fifth Third will maintain a significant retail branch presence because customers still want to sit down with a bank representative when they want a home or car loan or financial advice.

As of March 31, the company had 1,303 full-service banking centers and 2,637 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina.