When it was announced last week that First Citizens and Entegra Bank would be compelled to divest a branch in Highlands as part of their upcoming merger, it was welcome news for area residents.
The United States Department of Justice antitrust division reviewed the pending purchase of Entegra by First Citizens and determined that the two banks becoming one, and inevitably closing a branch in Highlands, would be detrimental to the competitive banking market in the community.
While having the largest portion of the market share possible is obviously good news for the bank, having a competitive atmosphere is better for the consumer. In Highlands that competitive atmosphere has shrunk considerably in the past two years.
Bank of America and PNC banks have each closed branches in Highlands since the start of 2019. Wells Fargo closed its branch in 2018 and replaced it with an automated teller machine in the Highlands Plaza parking lot.
The branch banking options that remain are First Citizens, Entegra and Regions Bank. Following the merger of First Citizens and Entegra under the First Citizens brand, which is certainly a smart business decision for both companies, the Entegra branch on Carolina Way was certain to be shuttered.
The DOJ ruling will ensure that the current Entegra branch in Highlands will remain a bank. First Citizens must sell the branch to a “qualified competitor” and cannot reacquire the branch for a minimum of five years. There is no word on what competitor may want to purchase the bank, or when that purchase will be finalized, but the DOJ will have to approve the deal before the divestiture is completed.
Of course, there is no way for anyone to know what the banking industry will even look like in five years. With the emergence of online bill pay, e-commerce and mobile banking via smartphone, more and more people are doing all of their financial transactions on the go, or from the comfort of their own home.
In the future, branch banks may no longer be a necessity for small towns. But for now, Highlands is better served by the DOJ promoting banking competition.