✦ Six New Markets and $222 Billion of DepositsNarrow moat

Bank of America (BAC) — the future bets

Bank of America is taking its deposit franchise into six new states while closing branches in the old ones.

For a bank whose moat is its deposit franchise, the obvious way to widen the moat is to take the franchise to new places. Bank of America plans to expand into six new markets, including Alabama, Louisiana and Ohio, which it says gives access to over $222 billion in deposits1.

Financial centers3,664June 20253,628End 20253,530June 2026Bank of America Form 10-K FY2025 and Q2 2026 results release
New states, fewer branches.

The bank operated financial centers in 38 states and the District of Columbia at the end of 20252, so there is room. Its investor-day target is deposit growth of 4% or more a year3, and average deposits have grown for 12 consecutive quarters4.

The strategy runs against the branch count. The bank had 3,664 financial centers in June 2025 and 3,530 in June 20265; it is closing more branches than it opens even as it enters new states. The new-market model relies on fewer branches, digital service and the brand arriving ahead of the building.

Entering a state is slow. A new market needs years for checking accounts to accumulate and primary relationships to form, and the incumbents there have the same kind of deposit franchise the bank has elsewhere.

The existing footprint shows how much room is left at home. Consumer Banking's average deposits are up 33% from pre-pandemic levels6, growth achieved mostly in markets where the bank already had branches.

Deposit growth is the measure. Average deposits growing at 4% or more a year would show the expansion was adding to the base; growth below the target despite the new markets would say they were too small to matter.

Moat trajectory: Widening

Six new markets planned; average deposits up 12 straight quarters.

The number that tests this moat
Reported
Number of financial centers, latest quarter
3,530 (Q2 2026) vs 3,664 a year earlier

The physical network behind the expansion; branch closures faster than digital growth would mean the new markets were being entered on thin support.

Source: Bank of America Q2 2026 earnings release ↗
References
  1. Third-party estimateBank of America plans to expand into six new markets, including Alabama, Louisiana and Ohio, which it says gives access to over $222 billion in deposits.
    Kitco (Reuters), Bank of America raises return target at its investor day - ROTCE 16-18%, trading share 7.6% against a 9% target, six new markets. — November 2025 · publ. 5 November 2025 · source ↗
  2. ReportedThe bank operated financial centers in 38 states and the District of Columbia at the end of 2025, so there is room.
    Bank of America Form 10-K for fiscal 2025 - Item 1 business: footprint, clients and employees. — FY2025 · publ. 25 February 2026 · source ↗
  3. Third-party estimateIts investor-day target is deposit growth of 4% or more a year, and average deposits have grown for 12 consecutive quarters.
    Yahoo Finance (Investing.com), Bank of America investor day targets and peer comparisons. — November 2025 · publ. 5 November 2025 · source ↗
  4. ReportedIts investor-day target is deposit growth of 4% or more a year, and average deposits have grown for 12 consecutive quarters.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - consolidated results, credit quality, capital and forward-looking risks. — Q2 2026 · publ. 14 July 2026 · source ↗
  5. ReportedThe bank had 3,664 financial centers in June 2025 and 3,530 in June 2026; it is closing more branches than it opens even as it enters new states.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - consumer and digital highlights: checking accounts, Zelle, Erica, BofA Rewards, financial centers. — Q2 2026 · publ. 14 July 2026 · source ↗
  6. ReportedConsumer Banking's average deposits are up 33% from pre-pandemic levels, growth achieved mostly in markets where the bank already had branches.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - segment results, returns on allocated capital and business highlights. — Q2 2026 · publ. 14 July 2026 · source ↗
Sources
Generated September 25, 2026