More than twice as many bank branches closed in Kansas as opened in 2013, according to a new report.
SNL Financial said in a report released Monday that 33 bank branches were closed in the state last year, while 15 were opened. That compares with 43 branch closing and 13 openings in 2012, according to the report.
The report examined branch closings for the 50 states, District of Columbia and Puerto Rico for calendar years 2010 through 2013.
During that period, 2012 marked the year for the highest number of branch closings in Kansas.
In 2013, Florida had the highest number of branch closings at 168, while Texas led the nation with 121 branch openings, the report said.
Nationwide, 2,563 branches were closed in 2013 – the highest in four years – while 1,076 were opened, a difference of 1,487, the report said.
The report by SNL attributes the rise in branch closing to a variety of factors, including: sluggish bank revenue in a slow-growing economy, mergers and acquisitions, and the effect of higher regulatory compliance costs, especially on smaller banks.
“I think all that is true, and I think that banks have had to think more prudently about where they’re going to deploy their resources,” said Chuck Marshall, a manager in accounting and consulting firm Kennedy and Coe’s financial institutions group.
Marshall said banks likely will be more cautious in selecting where to open branches, and the days when banks added branches in every growing area with heavily traveled intersections are likely over.
“They’re going to have a target market … where they already have established customers and established relationships,” he said. “What you want is a branch to service loan relationships, where you can bring in loan customers” as opposed to having a branch primarily to accept and grow deposits.