How do those little branches — a nearby intersection has 4 of them — make money? There’s no money in small deposits and withdrawals.
They don’t, that’s why they are closing.
We had a spate of bank building here back in the 80’s and 90’s. New banks were going up practically on every street corner.
They are all closing now....................
Loans. The small deposits aren’t money makers on their own, but the banks can borrow from the Fed a multiplier of their reserves and assets. So small branches serve as collection plate to boost the entire enterprise’s borrowing and loan capacity.