Mid Penn Bancorp to close Malvern branch

One of three branches to close as part of consolidation plan

The location at 2 West Liberty Blvd. is one of three scheduled to close as part of a retail consolidation.

MILLERSBURG » Mid Penn Bancorp Inc., the parent company of Mid Penn Bank, has announced plans to close three branches across its geographic footprint at the end of the year — including one in Chester County.

One of the branches slated to close as part of the retail consolidation announced Monday is the branch located at 2 West Liberty Boulevard on Malvern. That branch opened in 2005 and had previously operated as the headquarters for First Priority Bank, prior to that bank’s acquisition in 2018 by Mid Penn.

The consolidation, which also affects Mid Penn Bank’s Pillow (Dauphin County) and Vanderbilt (Fayette County) locations, is part of the bank’s strategy to “optimize the delivery of banking services and in response to shifting consumer preferences,” according to a press release.

“As we prepare for new days ahead in our industry, we are continually evaluating how we deliver our brand of community banking to the customers and communities we serve. We are committed to providing easy access to services when and where our customers expect them,” Rory

Ritrievi, Mid Penn president and CEO, said in a statement. “As we watch foot traffic in our traditional brick-and-mortar offices decline, we see sharp increases in adoption of on-line and mobile delivery channels in both our consumer and commercial customer bases. The ability to effectively bank anywhere and at any time is now expected to be part of our standard delivery.”

The company anticipates annualized savings in excess of $150,000 and expects to recoup the one-time costs associated with the initiative by the third quarter of 2021, according to the release.

No lay-offs or job losses are expected as a result of the consolidation, according to the bank, with services and employees from the affected branch moving to other branch locations. Customers will continue to have access to nearby branches as well as the bank’s technology-based services. A second Chester County branch is located at 23 E. Gay St. in West Chester.

There was no indication from the bank on how many employees will be impacted. However, when First Priority was acquired in 2018, Ritrievi said at the time that he expected 52 of First Priority’s 74 employees would continue on with the combined company.

By the end of 2020, Mid Penn Bank will operate 36 locations across 12 counties in Pennsylvania — including one location in Chester, one location in Montgomery, one location in Bucks and 4 locations in Berks counties. The former First Priority branch locations operate as “First Priority Bank, a Division of Mid Penn Bank.”

Originally founded in Millersburg, Mid Penn has expanded over the years to become a fullservice financial institution with multiple divisions. In 2015, Mid Penn completed its acquisition of Schuylkill County-based Miners Bank. In early 2018, Scottdale Bank & Trust was acquired, expanding Mid Penn’s footprint into western Pennsylvania.

The acquisition of First Priority Bank was completed in August 2018, an all-stock transaction valued at approximately $82 million.

For more information about Mid Penn Bank visit www.midpennbank.com.