Citigroup will sell its last 41 branches in Texas to BB&T for $122 million as part of a plan to focus on digital banking, American Banker reported on Wednesday (Sept. 3).
The branches, which are located in Dallas, Houston and the Midland-Odessa area, will give BB&T a total of 123 branches in Texas. The deal includes $2.3 billion in deposits and $87 million in loans, and is expected to close in the first quarter.
Citi said it plans to continue its corporate and investment banking, credit card, mortgage and other business in Texas, but that the Texas branch network “did not provide the scale to capture future growth and market share in traditional retail banking.”
Citi will have about 800 branches in the U.S. after the deal closes, and said it intends to focus on major urban markets elsewhere and digital banking. The bank did not say whether it will offer any online-only retail banking in Texas after the branch sales are finalized.
Other big banks have also been shedding their retail branches. For example, Bank of America has sold hundreds of branches in the southeastern U.S. in recent years.