According to a story in the Sacramento Business Journal, the B of A will be closing 10% of it’s branches across the nation as it refocuses it business and adapts to new technology over the next three years. According to the Journal story B of A has 57 branches in the region.
Mobile phones and the Internet have change the banking market, more customer are doing all of their backing on line now that they can deposit checks using a smartphone picture. There are fewer tellers needed to handle customer needs.
There may be another reasons that B of A is looking to reduce the cost of operations. According to a Bloomberg story half of it 13.9 million loans are “bad”, meaning there are legacy loans that are becoming more risky and are under performing. In addition there are looming laws suits over the mortgage mess that could reach $47 Billion. Add the burden of growing regulations and it is clear, that by reducing branches and employees the cost of operations goes down and other risks are diminished.
The up side of potential B of A local branches closing would be more customers for Citizens Bank in Nevada City and Grass Valley. Citizens Bank could use a boost in customer deposits right now.
Exit Question: Are any of Nevada County’s B of A branches vulnerable?