Bank of America to beef up its branch presence in the Twin Cities

Bank of America said Friday it will add seven branches in the Twin Cities over the next two years.

The expansion represents a 33 percent increase from the 21 branches it has in the metro area, all of which have opened since 2015.

The Charlotte, N.C.-based company, the nation's second-largest bank by assets after JPMorgan Chase, said the local expansion was part of a broader plan to open 350 branches around the country by 2021. It is remodeling another 500 in a network of 4,300 spread across most U.S. states.

The moves are happening as other banks are reshaping their branch networks, chiefly through closings or remodelings that reduce their size.

Wells Fargo, the nation's No. 4 bank, has announced the biggest downsizing, with plans to close about 800 branches by next year. It will still operate more than 5,000 nationwide.

Minneapolis-based U.S. Bank, the nation's No. 5 bank by assets, is expected to begin making changes to its branch system soon after emerging in December from a consent decree with regulators that for three years restricted its ability to open and close them. Executives have said the firm is examining staffing models and customer patterns in its branch network, which stretches across 25 states.

In recent years, some banks that are strong in regions of the country have expanded to others without opening branches, the traditional way to build a market presence. Instead, they started services for commercial customers and reached consumers through digital apps or other financial services, such as credit cards.

Bank of America said that, in addition to Minneapolis-St. Paul, it is also expanding quickly in several other cities where it had no retail presence just a few years ago. They include Indianapolis, Denver and Pittsburgh. The company also said it will soon open its first branches in Cleveland and Salt Lake City.

Evan Ramstad • 612-673-4241