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Citibank Closing 9 Central California Branches

December 26,2014

Screen Shot 2014-12-26 at 1.23.34 PMThe nation’s number three bank – Citibank is closing 9 Central California branches in the next few months as they seek to concentrate their efforts in the large urban areas.

NY-based Citibank filed a report with the Comptroller of the Currency in early December announcing the impending closures of  branches in Chowchilla, Madera, Kingsburg,Sanger, their 2 branches in Visalia on Main St in Downtown and their Mooney location,in Porterville and their only 2 locations on the Central Coast – in Atascadero and Paso Robles.

According to the latest FDIC market share report – Citibank has just  3.73% market share inside Tulare County in terms of deposits – ranked number 11 of all banks here. Tulare County-based Bank of the Sierra   is top bank with a market share of 18.20% followed by Bank of America and Wells Fargo. Citibank has $162.5 million in deposits in Tulare County compared to $794 million for Bank of the Sierra.

Citibank has three offices in the county – all of which now will be closed in by early next year.

The FDIC reports for the Tulare County market for 2013 shows Citibank with a 4.23% share with $168 million in deposits- showing the bank has fewer deposits than the year before

In the Valley, Citibank will keep its Hanford branch,Reedley and Selma locations as well as a handful of offices in the Fresno-Clovis area.

On the Central Coast the closure of the Atascadero and Paso Robles   locations will mean Citibank will have exited the region.

Citibank is a global bank with more offices outside the US than in. Their presence in California is relatively recent – since 2002 when they bought California Federal Bank.

Already an urban oriented bank,Citibank’s 983 North American branches are concentrated in major metropolitan areas including New York City, Chicago, Los Angeles, San Francisco, Washington, D.C., Miami, Boston, Houston, and Dallas

In addition to standard banking transactions, Citibank markets insurance, credit cards, and investment products. Their online services division is among the most successful in the field, claiming about 15 million users.

As a result of the global financial crisis of 2008–2009 and huge losses in the value of its subprime mortgage assets, Citibank was bailed out by aid from the U.S. government. On November 23, 2008, in addition to initial aid of $25 billion, a further $25 billion was invested in the corporation together with guarantees for risky assets amounting to $306 billion. Since this time, Citibank has repaid its government loans in full,resulting in a net profit for the U.S. government.

In total US bank branches have been shrinking even as services   become more electronic and ATMs pop up everywhere.

By one count US banks have shut 2,599 branches in 2014 against 1,137 openings, a net loss of 1,462 that is just off 2013’s record full-year total of 1,487, according to SNL Financial. The move brings total U.S. branches down to 94,752, a drop of 1.5 percent.Bank of America has shuttered the most.

Earlier this year Citibank was said to be seeking bidders for about 50 branches holding $3 billion in California as the third-largest U.S. lender pares brick-and-mortar outlets according to a Bloomberg story.
Bloomberg said the branches were located in rural areas from Sacramento to north of Los Angeles,and could sell for more than $100 million.

With no announcement it appears the sales effort fell short.

Citigroup had 384 branches in California holding close to $48 billion in deposits as of June 30, according to the Federal Deposit Insurance Corp. Earlier in2014 Citibank sold 21 branches in Texas in December to BB&T Corp.
“We continue to rationalize our branch footprint in North America by reducing the number and size of our branches while concentrating our presence in major urban areas,” Chief Financial Officer John Gerspach said on the company’s first-quarter earnings call.

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