Three Bank of America Branches Will Now Close in Michigan
Three major Bank of America branches will now close in Michigan this month according to new data from the Office of the Comptroller of the Currency (OCC).
“According to OCC, the federal Office of the Comptroller of the Currency, multiple Michigan-based Bank of America branches have been announced as permanently closing in the month of October.
The ongoing popularity of online banking has been reported as the primary cause of the current spate of state closures,” reports Joel Eisenberg.
Branches in the following states will be affected by Bank of America’s latest round of closures:
California, Michigan, Massachusetts, Virginia, Maryland and Washington.
California will see the most locations shut down at a whopping 15 this month, while Michigan and Massachusetts will have three and two sites close, respectively.
The following three Michigan-based Bank of America branches, per the OCC, are scheduled for permanent closure in October:
- Twelve Oaks Mall, Novi
- 4000 Baldwin Road, Auburn Hills
- 1310 South Rochester Road, Rochester
According to data from the Federal Deposit Insurance Corporation (FDIC), approximately 8,000 banks were in operation in 2000, but by 2022, this figure was halved.
Between Citibank, Wells Fargo, JPMorgan, and Bank of America, many banks have begun to close nationwide.
According to The-Sun, a particular branch, on Truxton Avenue in downtown Bakersfield, is scheduled to close early next year.
“The downtown building will be officially shuttered in February, and all Bank of America customers were warned of the upcoming closure by email.
While the bank has not disclosed why the specific branch will be shutting down, it said customers should expect to say their final goodbyes by February 27, 2024.
Bank of America has also closed 5% of its branches in Philadelphia.
In 2021, the bank closed 4,000 branches.
Also Read: Bank of America is Freezing Accounts in New Scandal
Other Bank News Today
Another massive bank is now at risk of collapsing as it struggles to put together a rescue takeover, reports the WSJ.
“Investors have been jittery for months about banks, after the implosions of Silicon Valley Bank, First Republic, Credit Suisse and others,” says Caitlin McCabe.
“Metro Bank was hobbled by company-specific problems”, S&P Global Ratings said Monday—primarily due to “subscale, high-cost business model” and a less efficient balance sheet than bigger peers.
Metro Bank was initially set out to compete with Barclays and NatWest, which at first began to attract deposits quite well.
However, the bank “struggled with poor profitability and a big real-estate footprint, as well as problems with loan accounting in 2019,” per WSJ.
Shares of the bank are currently down more than -61% this year-to-date.
In a research note, Christopher Cant, a senior analyst at Autonomous Research, recently singled out “long term, unbreakable, and expensive leases” as a key headache.
“Metro Bank has lined up a £925 million financing deal, including £150 million of new stock and £175 million of fresh debt.
The rest of that sum comes from a refinancing of existing debt, which will impose a 40% haircut on holders of some riskier bonds.”
However, the bank’s shareholders will be negatively impacted.
“Shareholders who can’t or won’t take part will see their stake diluted by about two-thirds, Gary Greenwood, an analyst at Shore Capital Markets,” said in a note Monday.
Billionaire Colombian backer Jaime Gilinski Bacal is injecting £102 million and will become the bank’s majority owner, with a 53% stake.
Also Read: A US Bank is Now Denying Customers Access to Money
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