Bank of America plans to open as many as 60 branches in the coming year in affluent, up-and-coming markets.
Speaking at an industry conference Tuesday, Dean Athanasia, co-head of consumer banking, said the Charlotte, N.C., company is taking a targeted approach to branching, focusing on 30 markets that generate the most economic activity.
Athanasia, who is also president of small-business banking, declined to provide specifics about the locations of the new branches. He did say that the branches will be “well placed” and that the company’s recent push into Denver and Minneapolis provides an example of what is in store.
Signage is displayed on the exterior of a Bank of America Corp. branch in New York, U.S., on Wednesday, Oct. 12, 2016. Bank of America Corp. is scheduled to release earnings figures on October 17. Photographer: Mark Kauzlarich/Bloomberg
Mark Kauzlarich/Bloomberg
In 2014, for instance, B of A opened a flagship branch in Denver’s tony Cherry Creek neighborhood across the street from a mall that is anchored by Neiman Marcus, Nordstrom and Macy’s. The branch broke even after two years even though the industry average is between seven and 10 years, Athanasia said.
B of A had 4,579 branches across the country at Dec. 31, down 3% from a year earlier. Total deposits grew 5% to $1.3 trillion.
Other big banks have taken a similar approach to branching. JPMorgan Chase, for instance, has recently added branches in San Francisco and Miami as it looks to add low-cost deposits while also scaling back in slower-growing markets.
In a forum Tuesday, Senate Democrats railed against President Trump and Elon Musk's efforts to shutter the Consumer Financial Protection Bureau as anti-consumer and illegal.
The Justice Department said in a legal brief that the Consumer Financial Protection Bureau will continue to exist, but said instead that the agency will have fewer employees and a reduced budget under the Trump administration.
The Illinois company plans to acquire neighboring Bancorp Financial in a cash-and-stock transaction that would form the second largest community bank in the Chicago area.
The collaboration will enable the payment company's Fastlane system to reach merchants in the U.K. and Europe, addressing a need to scale the product quickly.
