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.
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 will continue to close less profitable centers, Athanasia said. He did not specify how many branches the company plans to close in 2017.
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.