Exchange Bank is expanding into Marin County with its first full-service branch there, doubling down on brick-and-mortar banking at a time when many financial institutions are consolidating or closing branches.
The Santa Rosa-based community bank also relocated and redesigned its West Petaluma branch, signaling what its top executive described as a long-term commitment to in-person, relationship-driven service.
“With every new branch, we reaffirm our belief that strong communities and strong local banks go hand in hand,” CEO Troy Sanderson said in the news release. “My hope is that these branches become a catalyst for opportunity, connection, and continued growth for families and businesses across the area. We’re not just opening doors — we’re opening possibilities.”
The Marin branch at 3950 Civic Center Drive in San Rafael is open weekday mornings, 9 a.m. to noon. Exchange Bank has operated a Trust and Investment Management division office there since summer 2023.
The main Petaluma branch moved from 2 E. Washington St. to a former Bank of America branch at 200 Kentucky St. Renamed Petaluma West, the location is said to showcase a “new vision for the next generation” of the institution.
“Exchange Bank has been serving the Petaluma community since our first Petaluma branch opened in 1973 and similarly, we have been offering our wealth management services in San Rafael since opening the office in 2023,” Sanderson said. “While we have been established within these communities for years, we are thrilled to expand our services to better meet the needs of our customers.”
Both branches opened in December.
In the past six years, the U.S. banking system shed 10,272 branch offices (a 11.9% decrease), down to 76,120 as of June 30 last year from 86,392 in mid-2019, according to the Federal Deposit Insurance Corp. data. In that time, 2.37 branches closed for every one opened. But the pace of closings slowed after the pandemic, from a peak of 3.74 closings to openings in 2021 to 1.79 in 2024 and 1.26 last year.
Bank consolidation had spiked in the years after the Global Financial Crisis of 2007–2009. But a combination of mergers, a shift into digital banking accelerated in the pandemic and rising costs in certain markets have contributed to further contraction in the number of branch locations.
Exchange Bank’s Marin expansion comes as it reported improved profitability last year and took steps to bolster liquidity and capital. For the fourth quarter, Exchange Bank posted net income of $8.76 million, compared with $8.81 million in the same quarter a year earlier. For the full year, net income rose 25.6% to $29.97 million, up from $23.85 million in 2024.
Net interest income — the difference between interest earned on loans and investments and interest paid on deposits and borrowings — increased 11.6% year over year to $90.69 million. Total interest expense declined 12.3%, driven largely by an $8.39 million reduction in…
Read More: Exchange Bank expands in Marin County, Petaluma amid industry trend away
