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AT WHAT COST
What bank branches are closing, plus what these closures mean for banking customers
- Charlotte Maracina, Freelance News Reporter
- Charlotte Maracina, Freelance News Reporter
DOZENS of American bank branches have closed across the country within the span of one month.
Wells Fargo, Chase, and Bank of America are closing locations in several states as more customers turn to online banking.
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In total, 79 stores will be closing all within the span of a month.
California has been hit the hardest by the string of closures, with 20 locations having already shut down from April 20 to June 1.
The ball got rolling as JP Morgan closed 18 of its Chase banks, followed by Wells Fargo which closed 17 of its branches, AS reported.
Within the past week, Wells Fargo closed eight of its in-person banking locations.
READ MORE ON BANK CLOSURES
Bank of America continued the trend by shutting down 16 branches in California, New Jersey, and Florida.
Four hundred bank branches are expected to be closing brick-and-mortar locations by the end of 2024.
The last time banks saw a surplus of bank branches opening was in 2009, the FDIC reported.
In 2009, there were around 100,000 bank branches operating, today there are less than 80,000.
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The bank closures mean that customers will now either need to rely on online banking for their needs or drive to a further location.
Steven Reider, founder of Bancography, told the Daily Mail, "Banks are willing to close a branch that isn't really overlapping any other branch on the gamble that customers are willing to drive a little bit further."
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"I think Bank of America has leaned into that more than the other large banks have," Reider continued.
In 2023, over 1400 bank branches closed according to American Banker.
Surprisingly, that number was down significantly from 2022 and 2021, two years which saw high bank branch closures due to the COVID-19 pandemic.
2021 marked a record year for bank branch closings after nearly 3,000 bank branches shut its doors.
Many banks are closing locations in an effort to save money on operating costs and to move customers to primarily online banking.
However, some financial groups such as PNC Bank are doing the opposite.
PNC plans on investing $1 billion in renovating existing offices and building new ones.
Read More on The US Sun
The bank, which currently operates 2,300 branches, plans on building new branches between 2024-2028.
Despite the rise of online banking, PNC president Michael Lyons said "Branches will always have an important role."
Bank branch closures this month
Over 79 bank branches in several states have closed in a little over one month.
- JPMorgan Chase has closed 18 branches throughout New York, Pennsylvania, California, Texas, Indiana, Connecticut and Oregon
- Wells Fargo closed 17 branches throughout Minnesota, Illinois, New Jersey, Connecticut, Ohio, Texas, Florida, Mississippi, California, Arizona and Washington
- Bank of America closed 16 branches in California, New Jersey, and Florida
- Fifth Third Bank shut down three locations in Indiana and Tennessee
- TD Bank shut down a New Jersey branch and South Carolina branch
- US Bank shut down seven branches in California, Ohio, Tennessee, Arkansas and Arizona
- First NB Texas shut down its Montebello, California branch
- Hawaii Bank shut down a Chicago branch
- Huntington Bank shut down a Honolulu branch
- Inwood Bank shut down a Cincinnati location
- KeyBank shut down a Portland, Oregon, branch
- Lake Shore shut down its Tomball, Texas location
- LCNB shut down its Commerce, Texas, branch
- New Carlisle FSB shut down a Jamestown, New York, location
- NexTier Bank shut down a Camp Hill, Pennsylvania, location
- Northern Interstate Bank shut down a Prescott, Arizona, location
- Park shut down a Zanesville, Ohio, branch
- Shore United Bank shut down an Annapolis, Maryland, branch
- Trustco shut down a branch in Ramsey, New Jersey
- Zions Bancorporation shut down a branch in Crystal Falls, Michigan
Topics
- Money US
- Store closings
- US banking
- Wells Fargo
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