Bank of America plans to close 20 more retail branches, and
Charlotte, North Carolina-based BofA is seeking permission from the Office of the Comptroller of the Currency to close the branches, which stretch from coast to coast, according to the OCC's most recent weekly bulletin. The applications were filed with the regulator on Oct. 5.
Seven of the anticipated closures will affect branches in California, including three in the San Francisco Bay area. Three closures are scheduled for both New York and Connecticut. Offices in Pennsylvania, New Jersey, Texas, Oregon, Wisconsin and Florida are also scheduled to be shuttered.
BofA, the second-largest U.S. bank by assets, is in the midst of expanding its retail banking operations into nine new U.S. markets over the next four years, including places like
Bank of America has said it plans to lower its total branch count with the help of digital banking services. As of Oct. 13, Bank of America had 3,798 U.S. branches, according to data from the Federal Deposit Insurance Corp.
At an industry conference earlier this year, Aron Levine, the company's president of preferred banking, said there will be a net reduction in branches, but at a "more gradual" speed.
"We have a strategy of identifying areas where we can close two, open one," Levine said.
On Tuesday, during Bank of America's quarterly earnings call, CEO Brian Moynihan told analysts that the headcount in the company's consumer business went from about 100,000 to about 60,000 and "continues to drift down" as digital banking adoption increases.
Wells Fargo, meanwhile, closed one branch in 11 different states and two branches apiece in New Mexico and California, according to the OCC bulletin. Those closures were effective on Oct. 4.
The San Francisco-based bank has cut the number of branches it operates by 6% from a year ago, Chief Financial Officer Michael Santomassimo said last week during the company's third-quarter earnings call.
Still, "branches continue to play an important role" in the way the company serves its customers, Santamassimo said. Wells is both refurbishing some branches and looking at "targeted expansions" in markets such as Chicago, where it currently operates just seven branches, he said.
The $1.9 trillion-asset bank has said that it plans to open at least 23 more branches in the greater Chicago area. Wells had 4,471 branches as of Oct. 13, according to FDIC data.
"As customer preferences and transaction patterns change, so will our branches," a Wells Fargo spokesperson said Tuesday in response to an inquiry about the latest round of branch closures.
Large and regional banks evaluate the size of their branch networks frequently and make adjustments as needed. Last month, JPMorgan Chase
Bank of America and Wells do as well.
According to recent OCC bulletins, Bank of America plans to open new branches in locations such as Pittsburgh, Ohio and Utah, while Wells will open offices in the New York City boroughs of Brooklyn and Queens.
