Bank of America had more net branch closings than any other bank in the second half of 2011, according to data compiled by SNL Financial.
The Charlotte-based bank closed 41 branches around the country, while opening five -- a net loss of 36. The bank still has more than 5,800 branches around the country, one of the largest branch networks, according to the most recent FDIC data.
Wells Fargo closed 34 branches while opening 16, for a net of 18 closings, SNL's data show. It has about 6,400 domestic offices, according to the FDIC.
Peer JPMorgan Chase was the leader in branch openings, launching 178 while closing 12 for a net of 166. CEO Jamie Dimon has publicly put faith in the branch network, and the bank plans to open dozens more in 2012. Closing in on Bank of America, it has more than 5,500 branches, according to the FDIC.
Overall, more branches closed than were opened in the second half of 2011. Indiana topped the list of states with the most net branch closings. Old National Bancorp, based in that state, was second overall, with a net loss of 33 branches.
North Carolina was in the middle of the road, losing a net seven branches. South Carolina ranked near the bottom, losing a net 17. The Southeast lost the most of any region in the U.S.
California gained the most, with a net 57 opened, leading the growing West Coast market.
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2 comments:
The rate of closings will increase dramatically over the next few years. Online, mobile banking and remote deposit have had a significant impact on the branch traffic. These locations are becoming drains on the bottom line.
"These locations are be owing drains on the bottom line."
As are employees. With the current employment
Market starting to turn up, it is imperative for BAC, as well as any large organization in a position to control local markets, to get as many "employees" off the rolls and drive deeply in to the contract worker market. BAC can push costs down much further with contract workers and diminish employee benefit costs dramatically while avoiding further PR nightmares the next downturn by dramatically increasing contract employment usage.
I really hope they, as well as Wells given the ability of these two to get together and control the local staffing costs, and fully embrace contract workers much more significantly. They have just z ratted the surface of the cost savings available.
As a shareholder, I am comfortable with a short term PR hit with further layoff announcements to reduce benefit entitlements and make the shareholder whole.
Please BAC, do what is right by us, the shareholder.
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