For years, the annual update of the Summary of Deposits produced by the FDIC has shown similar trends - strong net branch growth and stronger deposit growth. The data published on October 7th, however, shows a net decline in total branches for the first time since 1994. This decline was driven by both a 40% reduction in new branch openings and a higher number of branch closures nationwide. One result of this trend has been a slight decrease in competitiveness. The average ratio of households per branch increased from 1,171 to 1,186 between 2009 and 2010.
Markets remain more competitive relative to 2005, when there were 1,222 households per branch nationwide. Over 250 of the 365 metropolitan statistical areas (as designated by the Census Bureau) experienced declines in this ratio during the past five years. We expect to see further declines as branches close in response to financial pressures and the proportion of new accounts opened online continues to rise.
MSAs with the Fewest Households per Branch