Is it ok to get demoted based on where you live?

My husband is a consumer lender at a bank. He has been with them for 4 years about to be 5 years. He initially started as a teller and was promoted after two years to work in a town 15 mins away from our hometown. After searching for a home in the town he was being promoted to and failing to find one within our budget. We found one in our hometown. Anyway two years later, he got news he was being demoted to be his managers assistant. And is being replaced with someone with no experience in banking the replacement got the position because he lives in the town. The main reason the president of the bank wants him demoted is because we don't live in the town he works and he can't be a part of the community to help bring more business. Which is honestly not true we go to every chamber of commerce banquet, parade, and community events possible. My question is, is there anything we can do legally? Or is this just how businesses work?