As wildfires in Los Angeles raged for a third day, banks in the area responded by closing more branches, donating to relief efforts and making sure their employees were safe.
Banks continued to temporarily close branches that were under threat from the flames. JPMorgan Chase, the biggest deposit-holder in the L.A. metro area, closed four of its 49 locations in Los Angeles County, according to its website. Banc of California, which has 36 branches in the same county, shut seven of them.
Wells Fargo did not specify how many of its locations were out of service due to the fires, but it alluded to some closures in a statement it shared with American Banker.
“We are working with local managers to evaluate the rapidly changing situation as it relates to our operations,” the statement said. “Any branch closings due to the fires and evacuations are done with the safety of our customers and employees in mind and we apologize for any inconvenience.”
On Thursday, banks in the Los Angeles metro area were continuing to assess the impact of the wildfires, which are still largely out of control. As of midday Wednesday, the Palisades fire — the biggest of the five major blazes — hasn’t been contained, according to the California Department of Forestry and Fire Protection.
Kevin Gould, president and CEO of the California Bankers Association, which represents banks of all sizes across the state, said in a statement that affected banks are “actively assessing risk to their offices, their employees and the communities they serve.”
He pledged that banks “stand ready to support customers and communities … and will be an active participant in recovery efforts.”
Los Angeles-based Bank of Hope has been communicating each day with its employees and encouraging remote work due to the fires, evacuation orders and school closures, a company spokesperson told American Banker in an email. None of its branches or offices have been destroyed by fire, but at least one is temporarily closed due to evacuation orders and power outages related to the Eaton fire, which has burned through homes and acreage in Altadena and Pasadena.
All employees in the wildfire areas are believed to be safe, the spokesperson said.
“We are continuing to actively assess the situation and determine the impact the fires may have had on our employees, customers and communities,” the spokesperson said.
Bank of Hope’s parent company, Hope Bancorp, had about 1,200 employees as of Dec. 31, 2023, according to the company’s most recent 10-K filing. The bank, which was founded to serve Korean-Americans, has 26 branches in California, including 17 in Los Angeles County, according to the Federal Deposit Insurance Corp., and more than $17 billion of assets.
Meanwhile, other banks reacted by trying to help. BMO Financial Group, which has 44 branches in Los Angeles County, said in a press release Wednesday night that it was donating to both the American Red Cross and the local nonprofit Direct Relief to help residents cope with the crisis. The bank also offered financial relief specifically for customers affected by the wildfires, including by waiving maintenance, overdraft and ATM fees and by extending due dates on loans and credit card payments.
U.S. Bancorp is also contributing to relief efforts. The company, which has about 200 branches in the area and 4,000 employees, is giving $100,000 to the nonprofit United Way of Greater Los Angeles and plans to activate its 4,500 ATMs to accept donations to the American Red Cross, a spokesperson said Thursday in an email. It is also offering a two-to-one match for any donations made by employees to either of those charities, the spokesperson said.
The Minneapolis-based parent company of U.S. Bank regularly activates its ATM network to collect disaster-related donations from around the country. It most recently did so following the back-to-back hurricanes that hit parts of the Southeast in September and October.
All employees in the affected areas are safe, the U.S. Bancorp spokesperson said.
City National Bank said in a statement that it will support relief and recovery efforts “when we know where and how we can have the greatest impact to help rebuild our communities.”
City National is based in Los Angeles and operates several branches in the region.
In all, the fires have burned through more than 29,000 acres. According to the Associated Press, at least five people have died and more than 180,000 people have been forced to evacuate.
Bloomberg estimates the wildfires will be one of the nation’s costliest natural disasters, with insurers potentially incurring losses of more than $10 billion.
The fires also raise questions about homeowners insurance in California, which was already strained. Leading insurers have been lessening their exposure in the Golden State in the past few years. Homeowners in the areas affected by blazes are also already paying well into the thousands of dollars a year for standard coverage, according to a price comparison tool by the state’s Department of Insurance.
