NEW YORK (Reuters) - Wachovia Corp. (NYSE:WB - News) on Wednesday said it plans to shut about 200 branches nationwide by the end of 2008 as it focuses on aggressive expansion in California, Texas and the U.S. southwest.

The No. 4 U.S. bank, which operates 3,400 branches, joins rivals such as Washington Mutual Inc. (NYSE:WM - News) that are closing branches to focus on faster-growing markets and businesses.

Charlotte, North Carolina-based Wachovia expects to open 100 to 130 branches in 2007, but few in the eastern part of the country, including New York. It expects next year to open 25 to 30 branches in southern California, which it entered in March.

"We're expanding in the high-growth markets," said Ben Jenkins, head of Wachovia's retail and business banking unit, at a Merrill Lynch & Co. financial services conference. "We're consolidating in the lower opportunity markets that have had traffic pattern changes."

He said Wachovia plans to close about 100 branches a year "at least for the next two years."

Like most U.S. banks, Wachovia is battling the convergence of long- and short-term interest rates, which narrowed the gap between what it earns on loans and pays on deposits.

Wachovia added 19 branches in California in March when it paid $3.8 billion for auto lender Westcorp Inc. and its WFS Financial Inc. affiliate.

In October, Wachovia paid $24.3 billion for Golden West Financial Corp., an adjustable-rate mortgage (ARM) specialist with 285 World Savings Bank branches in 10 states.

Wachovia was criticized for the purchase amid signs of a housing slowdown. But Jenkins said Golden West's loan originations and margins were "pretty stable" in October, despite "a pretty tough market with an inverted yield curve."

He said the combined company's "pay option" ARM business, which involves loans that let borrowers choose how much to pay each month, will in 2007 be "materially better" than in 2006.

In New York, Wachovia has opened about 19 branches in Manhattan, including many intended to serve customers who commute to work from the suburbs, and five on Long Island.

Jenkins said he would "love to have" 25 branches in Manhattan and 10 on Long Island. But he added: "I don't see any need for acquisitions here. I think we can build in Manhattan in just the locations we want, and do very well."

Seattle-based Washington Mutual, the largest savings and loan, in September announced plans to close 80 branches within a year, including many around Atlanta and Chicago.

Source of story:
http://biz.yahoo.com/rb/061115/financia ... .html?.v=2

Posters note:
Wachovia is one of the biggest, if not the biggest, enabler of illegal aliens. Notice that they are now moving most of their branches to areas that have a very high population of illegals. Good ridance to bad rubbish.