Shoney's Restaurant, 1900 S. Atherton St., will be closing in the next three months because of declining patronage, following a trend that has seen several businesses leave the area, the restaurant's general manager said.

Nittany Bank, 129 Rolling Ridge Drive, will move into the building by the end of June 2003.

The restaurant's move is necessary, said Nick Nikzad, Shoney's general manger.

"Location is a problem," he said. "Here [Shoney's] can only count on local traffic, which is not enough to keep [the restaurant] in business," Nick Nikzad added.

Shoney's depends on interstate traffic, and as soon as executives find a suitable plot, the restaurant will locate elsewhere in State College, Nikzad said.

The time of relocation has not been determined.

Nikzad said he hopes to move the eatery to the north end of Atherton Street.

Shoney's old b uilding has a larger space than Nittany Bank's current building, said Dave Richards, president and CEO of Nittany Bank.

The bank is moving to accommodate the high customer demand, not specifically to attract new customers, he added.

The section of town holds great potential for the bank, he said.

"The south end of town is a very viable part of the economy," Richards said.

Nittany Bank's current building on Rolling Ridge Drive is 5,000 square feet, and its growth has exceeded expectations, Richards said. The new location will include a full-service banking office, three driving lanes and a drive-thru ATM, he said.

The bank will be relocating lending operations as well, Richards added.

Nittany Bank did not encourage Shoney's to move or try to buy the building while the restaurant was still in operation, Nikzad said.

"We were going to close anyway," he said.

Nittany Bank will be leasing the new building from Ed Friedman Real Estate.

"Speaking as a landlord [the new location] has good visibility from South Atherton and easy access in and out," said Dave Lenze of the real estate company.