June 25 (Reuters) - Santander said on Wednesday

it had agreed to sell seven branches in the Allentown,

Pennsylvania area to U.S.-based Community Bank as the

Spanish lender pivots towards becoming a digital-first bank in

the United States.

Santander launched Openbank in the U.S. market late last

year with a high-yield savings account offering, and aims to

have a full-service digital bank in the country by the end of

2025.

In a separate statement, Community Bank said it will pay

Santander a deposit premium of $48 million for assets and

liabilities of the branches.

The New York-based lender said it expects to assume about

$600 million in deposits and purchase nearly $33 million in

branch-related loans.

The transaction is expected to close in the fourth quarter

of 2025.