BIRMINGHAM, Ala.—Regions Financial Corp. plans to accelerate its branch expansion across parts of the Southeast as competition from large national and regional banks intensifies in its core markets, according to remarks by CEO John Turner.
Turner said this week at an investor conference that the Birmingham-based lender intends to build between 135 and 150 branches over the next five years across Florida, Georgia and Tennessee, BankingDive reported.
The move speeds up a plan that was originally expected to take seven years.
“Executives just made the decision to pull that forward a little bit,” Turner said, according to Banking Dive. “It was a seven-year plan, now it’s five. And it might be four if we can acquire properties faster.”
Plans Also Call for Closures
Despite the planned expansion, the bank’s overall branch count is expected to remain roughly flat, Turner indicated.
“Simultaneously, we’ll probably close about as many” branches as the bank opens, he said, noting Regions may consolidate locations as it responds to population shifts or combines two or three branches into one, according to the report.
Regions currently operates about 1,250 branches across 15 states.
Turner said the bank expects to add between 16 and 20 branches in Florida, six to 10 in the Atlanta area, and 12 to 16 in Tennessee markets. Miami and Nashville are expected to see several new locations.
Physical Branches Important
Turner told the conference that physical branches remain important for customers seeking advice and guidance, especially when dealing with unfamiliar financial situations, Banking Dive reported. Branch locations also reinforce the bank’s brand identity, he said.
The bank, which has about $159 billion in assets, has found that opening branches in markets where it already operates is highly profitable, Turner said, according to Banking Dive. Expanding into entirely new markets is more challenging because Regions focuses on building long-term customer relationships rather than simply attracting deposits, according to the report.
Competition in the Southeast has increased as large banks pursue expansion in the region. Lenders including JPMorgan Chase, Bank of America, PNC, Fifth Third and Huntington have all announced branch growth plans in markets where Regions operates, while regional competitor Truist is also expanding, Banking Dive reported.
JPMorgan Gets Aggressive
Turner said JPMorgan’s expansion is particularly notable. The largest U.S. bank currently operates 14 branches in Alabama and plans to grow that number to 35 by 2030, according to Federal Deposit Insurance Corp. data cited by Banking Dive.
Turner said Regions is leaning on its “hometown bank” identity to compete in those markets and closely monitors where rivals are opening branches.
The bank also tracks whether Regions customers maintain relationships with competing institutions, such as holding a credit card with JPMorgan, and targets those customers with outreach and offers designed to strengthen the relationship, Turner said, according to the report.
In some of its strongest markets, Regions holds about 30% market share, Turner said, leaving significant opportunity to win customers who bank elsewhere.
“More competition in our markets makes us up our game and get better,” Turner said, according to Banking Dive.
