Where Branch Closures Are Concentrated
Published January 12, 2015 7:30 AM
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Updated March 30, 2017 10:26 AM
1 Min Read
Nationwide the number of bank branches fell by about 1.7% last year. But some cities and states were hit harder than others, according to data from the Federal Deposit Insurance Corp. and research firm BankRegData.
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An Eight-Year Low
For the fifth consecutive year, the number of U.S. bank branches fell during the 12-month period that ended June 30, according to the latest available data from the FDIC. There were 94,725 branches nationwide, the lowest total since 2006. In addition, last year's 1.7% drop in branch count was the largest one-year decline since the downward trend began in 2010.
Illinois Leads the Contraction
Some of the biggest drops in the number of bank branches happened in the Midwest. Illinois, Ohio, Michigan, Wisconsin and Indiana were all among the top 10 states in branches lost in the year ended June 30. Illinois was No. 1 with a loss of 125 branches. Also in the top 10 were Pennsylvania, Florida, New York, Virginia and New Jersey.
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Puerto Rico Hurt by Sagging Economy
If one looks at the number of branches lost in each state as a percentage of the state's total, a different picture emerges. Puerto Rico, which has been mired in a long recession, had nearly 7% fewer branches at June 30 than it did a year earlier. Next on the list were Arkansas, Maryland, Oregon and Maine, all of which lost more than 3% of their branches.
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Chicago Sees a Big Dip
Given that Illinois topped the list of states that lost bank branches, it's not surprising that Chicago shed more branches than any other metropolitan area. The Windy City and its suburbs lost 117 branches, or 3.7% of their total, in the 12-month period that ended in June.
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Slower-Growing Regions Hit Harder
Other metro areas that saw big declines in branches were concentrated in the Northeast and the Midwest, and not the faster-growing West and South. On the top-10 list for branches lost were the New York, Philadelphia, Detroit, Washington, Kansas City, Baltimore, Milwaukee and Indianapolis regions.
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A Few States Make Gains
Five states bucked the national trend and actually saw branch gains in 2014, though those increases were small. Massachusetts added eight branches, while Rhode Island, Hawaii, Montana and Wyoming all gained three or fewer. Nebraska had the same number of branches as of June 30 that it did a year earlier.
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Boston Leads the Plus-Minus Pack
In 11% of metropolitan areas nationwide, the number of new branches exceeded the number that closed. First on the list was the Boston area, which netted 13 additional branches. The Los Angeles metro area, which includes Long Beach and Anaheim, Calif., gained 10 branches. Also on the list of gainers were the Jacksonville, Fla., Providence, R.I., and San Jose, Calif., regions.
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