County ready to switch accounts to Citizens Bank
With the deal off for Northwest Bancshare to buy NexTier Bank, Butler County is poised to switch banks.
County treasurer Diane Marburger on Monday advised the county commissioners to move 89 interest bearing checking accounts from NexTier to Citizens Bank.
“The whole thought process changed once the acquisition went away,” she said in an interview.
Marburger said the change is needed to ensure stability and security for the county’s money by using a bank with more electronic protection.
She considered Northwest despite the deal with NexTier going south, but decided the larger bank wouldn’t be the county’s best choice.
Marburger said Northwest couldn’t provide the same service without the acquisition of NexTier.
“There were several elements they could not deliver,” she said.
With NexTier, Northwest was able to offer armored car transport. Without NexTier, that service was not available.
Although Citizens doesn’t offer armored car service, it does provide something Northwest doesn’t: a Butler branch.
Citizens Bank will pay a 0.3 percent interest rate.
The commissioners appear poised to approve the switch to Citizens on Wednesday.
Commissioners Dale Pinkerton and Jim Lokhaiser expressed support for Marburger’s recommendation.
“I feel very comfortable with that,” Lokhaiser said. “There shouldn’t be a problem.”
Commissioner James Kennedy said he wouldn’t disclose his vote until Wednesday.
The county’s 89 accounts with NexTier hold $20 million to $24 million on any given day.
Most of the total county budget, which was $177 million this year, passes through those accounts.
The sheriff and prothonotary use PNC.
County officials in early November agreed to keep the accounts with NexTier as Northwest was set to buy the smaller bank.
However, the FDIC the following week essentially quashed Northwest’s proposed acquisition by stating various components of the larger bank’s consumer compliance program were lacking.
Without federal regulatory approval, the deal fell through.
NexTier has offices throughout Butler, Armstrong and Allegheny counties. Northwest is based in Warren.
Citizens Bank of Pennsylvania is based in Philadelphia.