Regional bank First Tennessee has agreed to buy 13 Bank of America branches across Tennessee, strengthening its position as the state’s biggest bank by deposits.
The acquisition will see First Tennessee add about $660m in deposits to the $16.6bn that it had in June 2013, according to the Federal Deposit Insurance Corporation’s (FDIC) summary of deposits.
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Carol Yochem, First Tennessee Middle Tennessee president, said: "We have targeted Middle Tennessee as a growth market for us.
"We are going to go into new markets where we didn’t have a First Tennessee presence in the past."
According to the Tennessee lender, the deal will see it take on all 88 of BofA’s employees at the purchased branches, four remote ATMs from Bank of America and a portion of its loans
A spokesperson for BofA said the deal allowed it to "preserve as many jobs as possible" and ensure people living in the state still have access to financial services.
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By GlobalDataFirst Tennessee, parented by First Horizon National, has over 170 branches across Tennessee and other south-eastern states.
The deal sees the continuation of a trend for branch network reduction at several US banks.
Recent announcements of planned branch divestments at BofA include:
– the sale of 11 Michigan branches to Huntington National bank and a further 13 to Huntington Bancshares;
– the sale of 11 of its 51 strong branch network in Kansas;
– Washington Federal’s acquisition of 23 BofA branches in Arizona and Nevada.
According to the FDIC’s summary of deposits, BofA reduced its branch network by over 250 branches, from 5,660 to 5,401 between June 2012 and June 2013.
During the same period the previous year, the bank cut its branch network by 196.
In January 2014, BofA chief financial officer, Bruce Thompson, said the number of physical bricks and mortar locations could drop to less than 5,000 by the end of the year.
Analysis by SNL Financial released at the end of January 2014 said the total branch count of all banks in the US fell by 1,487 branches in 2013.
Related articles:
Huntington Bancshares to buy 13 BofA branches in Michigan
BofA plans to divest 11 bank branches in Kansas
Huntington National Bank to purchase 11 BofA branches in Michigan
