NE Ohio ranks 2nd in bank-branch openings

By Mark Williams

Columbus Dispatch

COLUMBUS

Online banking isn’t killing the need for bricks-and-mortar offices after all, at least in Ohio.

In fact, finding a bank branch in Ohio to cash a check or make a deposit has gotten easier, unlike in much of the rest of the country.

Led by Huntington Bancshares, Ohio banks have added more branch offices than those in every other state except California in the 15 months that ended Sept. 29, according to financial news service SNL Financial. Among metropolitan areas, Northeast Ohio trailed only Los Angeles in the most office openings.

Given their low population growth and struggling economies, Ohio and Cleveland would seem to be unlikely markets where banks would seek to expand, especially as banks nationwide are reducing their numbers of branches.

Two banks with a big presence in Ohio — Huntington and JPMorgan Chase & Co. — think a widening physical presence is the best way to get more customers and expand their business.

“Our strategy has been about growing. More branches help growth because it’s more convenient for more customers or potential customers,” said Mary Navarro, Huntington’s director of consumer and business banking.

In the 15-month period, Huntington had 46 net openings — 48 branch openings, minus two closings — more than any other bank in the country except JPMorgan Chase, which had 167 net openings. Minneapolis-based U.S. Bank tied with Huntington for second, and another Ohio-based bank, KeyCorp, was fourth.

Most of Huntington’s 46 net openings were in Ohio, SNL said.

Counting all banks, Ohio had 30 net openings in the period, and Northeast Ohio has 24 of those, according to SNL.

LA was at the top because Chase has been opening branches since its acquisition of Washington Mutual, according to SNL.

Texas had the most net closings, followed by Florida. Of the banks, Wells Fargo & Co. and Bank of America had the most.

The number of branches has dropped by about 1,400 in the past two years, and probably will continue to move modestly lower, reflecting the declining number of checks being written and growth in alternative payment mechanisms such as Internet and mobile banking, Meara said.

Ohio has about 4,400 bank offices, including about 700 in the Cleveland area and nearly 600 in the Columbus area, according to the FDIC.