News Summary
Santander Bank has announced the sale of seven branches in the Allentown area to Community Bank, N.A. for a deposit premium of $48 million. This move aligns with Santander’s strategy to focus on digital banking, having launched its Openbank platform in the U.S. in late 2024. The acquisition will preserve existing jobs and enhance Community Bank’s footprint in the Greater Lehigh Valley. The transaction is anticipated to close in the fourth quarter of 2025, pending regulatory approval, as Santander continues to optimize its branch network.
Pennsylvania – Santander Bank has announced plans to sell seven branches located in the Allentown area to Community Bank, N.A. This transaction is part of the bank’s strategy to shift towards a digital-first banking model in the United States. The branches included in the sale are situated in the cities of Allentown, Bethlehem, Coopersburg, Easton, Emmaus, and Whitehall.
Community Bank will acquire the branches for a deposit premium of $48 million, which encompasses the assets and liabilities of the locations. This sale will also involve approximately $600 million in deposits and nearly $33 million in branch-related loans. The completion of this deal is anticipated to occur in the fourth quarter of 2025, pending regulatory approval and customary closing conditions.
In line with its digital transformation efforts, Santander Bank launched Openbank, its digital banking platform, in the U.S. market in late 2024. Openbank has quickly gained traction, accumulating over $4 billion in deposits and serving more than 100,000 customers as of May 2025. Along with the development of Openbank, Santander recently opened its first physical location branded as Openbank in Miami Worldcenter.
The branches acquired by Community Bank will continue to operate under the new ownership, and current employees of Santander Bank’s Allentown-area branches will retain their jobs. This aligns with Community Bank’s expansion plans, bringing its total number of retail locations in the Greater Lehigh Valley to 12. As part of its strategy, Community Bank operates around 200 customer facilities across Upstate New York, northeastern Pennsylvania, Vermont, and western Massachusetts.
Financially, the acquisition is expected to be slightly accretive to Community Bank’s earnings. Additionally, the deal includes wealth management relationships that Community Bank intends to purchase from Santander’s affiliate, Santander Securities LLC. This acquisition will support Community Bank’s plans for de novo expansion in the Greater Lehigh Valley, enhancing its existing commercial and consumer lending operations.
This transaction is consistent with Santander’s ongoing strategy of optimizing its physical presence while focusing on modernizing branch formats. The bank is also set to close 18 of its 400 U.S. branches by August 2025, which accounts for about 4.5% of its locations in the nation. This realignment aims to enhance efficiency and prioritize branch locations that better align with customer needs.
Reed Smith provided legal guidance to Santander Bank during this transaction, while Lazard Frères & Co acted as the financial advisor for Community Bank. The combination of these efforts illustrates a strategic shift in the banking landscape, with a heightened focus on digital services and a streamlined branch network.
Deeper Dive: News & Info About This Topic
- Business Wire: Santander Bank Announces Sale
- Wikipedia: Santander Bank
- Investing.com: Community Bank to Acquire Branches
- Google Search: Santander Bank Community Bank
- Banking Dive: Santander to Sell Branches
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Author: STAFF HERE PHILADELPHIA WRITER
PHILADELPHIA STAFF WRITER The PHILADELPHIA STAFF WRITER represents the experienced team at HEREPhiladelphia.com, your go-to source for actionable local news and information in Philadelphia, Philadelphia County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Mummers Parade, Philadelphia Flower Show, and Thanksgiving Day Parade. Our coverage extends to key organizations like the Greater Philadelphia Chamber of Commerce and United Way of Greater Philadelphia, plus leading businesses in telecommunications, food services, and healthcare that power the local economy such as Comcast, Aramark, and Children's Hospital of Philadelphia. As part of the broader HERE network, we provide comprehensive, credible insights into Pennsylvania's dynamic landscape.
