Bank of America Closings: Over 20 Branches Shut Down as Consumers Shift Toward Online Banking

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The number of Bank of America closings in 2017 went up because of the rise in mobile banking and online banking. Bank of America Corp (NYSE:BAC) is closing its branches as a cost-cutting measure, which will help it earn a profit.

Last year, the bank announced it was lowering its budget to $53.0 billion by 2018. With one quarter left in the bank’s fiscal year, Bank of America (BoA) is on track to meet its goal. The bank’s performance in the third quarter ended September 30 reveals that noninterest expenses for the bank were $13.1 billion.

This value is about 2.5% down from the previous year. If the value is calculated for a full year, it would be $52.4 billion ($13.1 x 4). Assuming that nothing unexpected happens between now and the end of next year, then it can be said that Bank of America is ahead of meeting its latest expense target.

To achieve its latest expense target, Bank of America has reduced its workforce. At the beginning of 2010, the bank had 284,000 full-time employees. Today, it has fallen to 210,000, representing a 27% decrease in its staff. BoA has also spent the past decade reducing its branch network. It had more than 6,100 branches, but now there are only 4,511. Again, it’s a decline of nearly 27%.

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The rising trend of digital banking has led BoA to make these changes. If we consider the latest quarter transaction for Bank of America, one in five deposits at the bank was made through online banking. This shows the reduction in demand for services provided only at physical Bank of America branches.

Bank of America Closings in 2017: 1st Quarter

Bank of America Branch Closing in Virginia

A Bank of America branch located in Richmond, Virginia closed in the first quarter of 2017. Its closing appeared to have a racial tinge.

The 1307 E. Brookland Park Blvd. branch in North Side had been a fixture in the Highland Park community for decades. The branch was impacted by BoA’s seven-year-old strategy of paring branch numbers because of the economic recession and the shift in consumer banking trends.

Predominantly black neighborhoods in many cities are void of bank branches, major retailers, and grocery chains. Financial analysts claim that closing bank branches has helped Bank of America lower its costs. The surviving branches are gaining more specialists in mortgages and investments to meet customer demand for face-to-face assistance in buying homes, saving for education, and retirement investments.

Bank of America Closings in 2017: 2nd Quarter

Bank of America consolidated its branches to adapt to the changes in the way people bank. Most of the clients use their mobile phones or online banking for basic transactions. They only visit banks to get advice or guidance for complex requirements.

BoA’s second quarter saw the closing of following bank branches:

Bank of America Closing in Illinois

The Bank of America branch on Belleville Public Square closed in April 2017 with two other branches consolidating into a new building near Southwestern Illinois College.

Locations at 23 Public Square, 330 W. Main St. in Belleville and 10 N. Belt West in Swansea consolidated into a new location at 1911 Carlyle Avenue in Belleville. The customers were notified about the new location in December.

Bank of America Closing in Washington

Bank of America closed its branch in 10574 Silverdale Way on May 16, 2017. Silverdale account holders were transitioned to the Towne Centre branch at 9981 Silverdale Way. As with other BoA branches, the closing was a result of customers shifting toward online and mobile banking.

Bank of America Closing in California

Bank of America closed its branch located at 110 E. Weber Ave., Stockton on June 27, 2017. It has consolidated its center one mile away at 210 E. Dr. Martin Luther King Jr. Blvd.

The East Weber Avenue branch closing left Stockton with five Banks of America branches. There are two BoA offices in Lodi and Tracy, and one in Manteca.

The closing was again due to consumers moving online and mobile banking solutions.

Bank of America Closings in 2017: 3rd Quarter

The third quarter saw the closing of the following bank branches:

Bank of America Closing in New York

Bank of America closed its Newburg branch in mid-July. Tara Burke, a BoA spokesperson, said that their goal is to “provide the right network of financial centers and ATMs for our clients.” Consumers want convenience and prefer using online and mobile banking services.

Bank of America Closing in Texas

Bank of America closed its downtown Waco location at 514 Austin Ave in Texas. This has created a vacancy in a stately building as the area around it is redeveloped.

Bank of America Closing in Michigan

Bank of America closed its Albion branch on August 15, 2017.

Bank of America Closing in California

Bank of America closed its branch located at 1374 W. Ramsey St. in Banning on September 12.

Bank of America Closings in 2017: 4th Quarter

The fourth quarter observed the closing of the following bank branches:

Bank of America Closing in Georgia

BoA closed three Macon branches in November because of the changing trend in banking. People prefer automatic deposits of their paychecks, pay bills online, check account balances from their phones, and use ATMs for banking. The offices at 2720 Riverside Drive, 4040 Vineville Ave. and at 3930 Pio Nono Ave. were closed on November 14. All the customers were notified of the change through the mail.

Bank of America Closing in North Carolina

Charlotte-based Bank of America announced the closure of the North Carolina branch in Wilkes County—at 200 Main Street, Wilkesboro on November 28. Customers were notified of the change in the first week of August.

The decision to close the branches was based on customer’s preference of using mobile and online banking.

Bank of America Closing in Iowa

The Bank of America branch at 501 E. Army Post Road in Des Moines, Iowa was shuttered on November 14. The company decided to consolidate the locations as more people are shifting toward online or mobile banking.

Bank of America Closing in New Jersey

The Bank of America branch at the location 19 Ridgedale Ave, East Hanover, New Jersey was confirmed to close in the first week of December. The closure is because of the decline in foot traffic in banks as online banking is preferred by most consumers.

Other branches closed in the fourth quarter due to customers shifting toward mobile and online banking are:

Bank of America Closing in California

  • Paradise branch closed in November.
  • Lakeport and Ukiah branches closed on November 11, 2017.
  • The local branch in Anderson closed on November 28, 2017.
  • Brach at 433 Cortland Ave. in Bernal Heights closed in November.
  • Branch at Fresno’s tower district closed on November 28, 2017.

Bank of America Closing in Texas

  • Canyon branch on 2625 Calder Ave closed in October.
  • Beaumont Branch closed on October 31, 2017.

Bank of America Closing in Washington

  • 1000 Sixth Street in downtown Bremerton branch closed on November, 14.

Most of the Bank of America closings in 2017 were mostly because of the shift toward mobile and online banking. Moreover, in response to the customers’ changing needs, the bank will be redesigning more than 1,500 centers over the next few years and will open 200 new branches with a layout and furnishing that will effectively serve its customers.

 

Sources

Bank of America Is Continuing to Slash Expenses,” The Motley Fool, October 20, 2017.

Bank of America clarifies report of branch closings,” ABC News, last accessed January 5, 2018.

Bank branch to close in Highland Park,” Richmond Free Press, March 2, 2017.

Bank of America on Belleville Public Square to close in April,” BND, January 9, 2017.

Bank of America also closing a Silverdale branch,” Kitsap Sun, February 10, 2017.

Bank Of America Closing Albino branch,” Orleans Hub, May 9, 2017.

Downtown Stockton BofA branch to close,” Recordnet.com, February 13, 2017.

Bank of America closing Newburgh branch in mid-July,” Times Herald-Record, May 19, 2017.

Bank of America to close Austin Avenue location,” Waco Tribune-Herald, June 6, 2017.

Bank of America, Aaron’s, closing in Banning,” Record Gazette, June 22, 2017.

Bank of America Canyon branch to close,” Amarillo, July 19, 2016.

Beaumont Bank of America branch to close Oct. 31,” Beaumont Enterprise, July 25, 2017.

Bank of America closing downtown Bremerton branch,” Kitsap Sun, February 7, 2017.

Bank of America closing branches in Lakeport, Ukiah,” The Press Democrat, July 28, 2017.

Bank of America branch closing,” Journal-Patriot, August 25, 2017.

Bank of America set to close Anderson branch in November,” KRCR, August 23, 2017.

Bank of America to close Paradise,” ParadisePost.com, November 8, 2017.

Bank of America to close another Des Moines branch,” Des Moines Register, October 5, 2017.

After 90 Years, Bank Of America To Close Bernal Heights Branch,” Hoodline, September 5, 2017.

Bank Of America In East Hanover Closing,” Patch, August 29, 2017.

Bank of America to close its longtime Tower District branch in Fresno – The Business Journal,” Trading.co.uk, last accessed January 5, 2018.

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Categories: Branch Closings, News

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