What Happens When Bank of America Leaves Town
September 17 2017 - 7:29AM
Dow Jones News
By Rachel Louise Ensign and Coulter Jones
Gavin Schill said he might not have been able to start his
dental practice in Elkhart, Ind., about six years ago if there
hadn't been a Bank of America branch in town to give him a
loan.
But now that the bank has left the area, Mr. Schill said he's
not that sad about it.
Bank of America pulled its branches out of Elkhart and other
towns in Northern Indiana and Southwestern Michigan in 2013. So
far, there doesn't appear to be much economic damage from the move.
That is in part because the bank sold the branches to a smaller
lender.
In more than three-quarters of the 253 counties that Bank of
America has left since 2009, at least some branches were sold,
limiting harm to local communities, according to a Wall Street
Journal analysis of bank regulatory records. In the remaining
counties, however, Bank of America closed its branches.
In 2015, for instance, the bank shut down its lone remaining
branch in Dodge City, Kan. The bank told regulators at the Office
of the Comptroller of the Currency that it was closing the branch
because it wasn't meeting "business volume and profitability
targets," according to documents obtained through a public-records
request.
The bank sent customers a letter saying the branch was closing
because "fewer customers have been visiting us here and instead are
using online and mobile banking," according to the documents. It
suggested customers could visit a branch in Wichita, Kan., more
than 150 miles away, or in Amarillo, Texas, a roughly 240-mile
drive.
Bank of America's sole remaining branch in Elkhart, population
52,000, came through its 2007 acquisition of Chicago-based LaSalle
Bank. The branch, located next to a Salvation Army community center
in a poor area, had a row of teller windows and few specialists. It
still had décor from years earlier when it was owned by a LaSalle
predecessor, said Ryan Bender, who worked at the location.
Bank of America sold its Elkhart branch to Indiana-based Old
National Bancorp as part of a broader branch-and-deposit sale in
the area.
When Bank of America left Elkhart, Mr. Schill said he was
annoyed that he had to switch banks. But he eventually refinanced
his loan with Old National Bank and said he prefers the personal
attention they offer, including mixers for dentists at local
restaurants.
"Elkhart wasn't worth their time," Mr. Schill said of Bank of
America. "I'm much happier now."
Write to Rachel Louise Ensign at rachel.ensign@wsj.com and
Coulter Jones at Coulter.Jones@wsj.com
(END) Dow Jones Newswires
September 17, 2017 07:14 ET (11:14 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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