A Webster Bank branch in downtown Boston. Photo by James Sanna | Banker & Tradesman Staff

Webster Bank plans to close 27 of its New England branches, making it the second bank in the region to announce consolidation plans this week.

The Waterbury, Connecticut-based Webster Bank said in an SEC 8-K report today that it would close 27 branches in Massachusetts, Connecticut and Rhode Island, integrating the locations with nearby branches, which the bank calls “banking centers.”

Webster currently has 29 branches in Eastern Massachusetts, nine in Rhode Island and more than 100 in Connecticut, according to FDIC data. The bank also has seven branches in New York. The SEC report did not mention the New York branches.

The consolidation would reduce Webster Bank’s branch footprint by about 17 percent. The bank said it expected to complete the consolidation next year by the end of the second quarter.

“These actions are a result of the company’s increased focus on balancing physical locations and digital banking channels, driven by increased client usage of online and mobile banking,” Webster Bank said in in the report.

The report did not specify which branches would be affected. Webster Bank said in a statement emailed to Banker & Tradesman that it is communicating with customers and that information about the affected banking centers “will be available shortly.”

“As always, we are dedicated to meeting our customers’ financial needs and service expectations,” Webster Bank said in the statement. “Our banking centers remain an important component in serving consumers and businesses, and our commitment to the communities we serve remains strong.”

Boston-based Berkshire Bank on Wednesday announced plans to reduce its footprint by 18 percent, closing 16 branches in Massachusetts, Connecticut and New York, while also selling its New Jersey and Pennsylvania branches to New Jersey-based Investors Bank. Berkshire also cited consumers’ move to digital channels as a reason for the consolidation.

Webster said it expected the consolidation to cost approximately $19 million, including $16 million in write-offs of premises and equipment and $3 million in future cash expenditures due to contractual lease obligations. The consolidation is expected to reduce annual pre-tax operating expense by approximately $15 million starting in the third quarter of 2021, the bank said.

Webster Bank in early October ended the tenure of its head of community banking, Nitin Mhatre. Bank analysts at the time said the move pointed to Webster’s response to changes in consumer behaviors. The bank later appointed Jonathan Roberts as head of retail banking and consumer lending.

Editor’s note, Dec. 4, 2020, 1:15 p.m.: This story has been updated to include a statement from Webster Bank.