Bank Of America Offloads 13 Tennessee Branches As Customers Turn To Digital Transactions

Bank of America announced on Wednesday that it is letting go of 13 small-town bank branches in Tennessee. (File Photo)

Bank of America has agreed to sell 13 office branches in the state to First Tennessee Bank. All of them are away from cities, and the move reflects a growing industry trend of retreating from small-town locations.

Saying goodbye to branches in places like Sparta, Johnson City and Kingsport doesn’t surprise Jeff Davis, a Nashville bank analyst with Mercer Capital. He said Bank of America is in the midst of shutting down smaller branches and focusing instead on ones in major cities, which tend to be more profitable. In 2012, the company shuttered around 200 branches. Its latest efforts are geared toward converting customers to mobile and online banking services.

“Money is increasingly digital and increasingly doesn’t require a physical location for you or me or a businesses to interface,” Davis said. “Bank of America has this massive, massive branch network, and they’re working on trimming it along the edges. It creates an opportunity for First Tennessee.”

In many rural communities, though, Davis said, customers rely on brick-and-mortar branches more than mobile and online services.

“In time, that will change. The kids growing up in those places are tech-savvy,” Davis said.

First Tennessee is the largest bank in the state with 164 bank branches and $16.6 billion in total deposits. The acquisition will add $660 million in deposits, giving the institution an edge over Regions Bank, which has vied over the years with First Tennessee for the number one spot in the state.