Financial consultancy SNL released a report Thursday that showed bank branch closures since 2010 have skewed more toward suburbia and exurbia, as banks have begun chasing an overall trend toward increasing urban populations.
SNL pointed out Bank of America said it would favor retaining urban branches and consider closing suburban ones, and presented evidence that other banks have followed its lead.
For example, the metropolitan area consisting of Chicago-Naperville-Elgin lost the most bank branches overall since 2010. However, census tracts located in Chicago's city center saw a net increase in the number of bank branches. One downtown Chicago tract, SNL noted, saw a net increase of five branches.
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By contrast, the firm looked at Kendall County, Ill., one of Chicago's exurban counties. Despite having a median income of $81,534, the county lost the greatest percentage of its branches, SNL reported.
Significantly, California MSAs appeared to buck this trend as Los Angeles, San Francisco and San Jose increased their bank branches since 2010. But, SNL pointed out that in San Francisco and San Jose, even though the MSAs as a whole increased their branches, the increase was primarily in the city centers with the suburbs and exurbs experiencing net branch losses.
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