News

Banks continue their branch-trimming trend

Over a 12-month period, cities across the US saw a net total of 1,441 branches shuttered, according to an SNL Financial report.

May 8, 2015

During the first quarter of 2015, banks closed a net 332 branches across the U.S. From April 1, 2014, through March 31, 2015, banks opened 1,023 new branches, but closed 2,464, for a net reduction of 1,441 branches over 12 months. (Numbers include banks only; credit unions were not counted in the report.)

According to an article by 247wallst.com, mobile banking is the culprit in branch reductions reported by SNL Financial. Banks also downsized operating branches — over the 12-month period, PNC converted 127 branches to smaller formats with increased automation.

Other findings from the SNL report: 

• Bank of America Corp. racked up the largest number of net closures over 12 months, at 151.
• PNC Financial Services Group Inc. shuttered the highest number of branches in Q1 2015 — with a net decline of 38 branches. Regions Financial Corp. was in second place for Q1, down 32 net branches.
• JPMorgan Chase & Co. was third with a net of 31 branches Q1.

By state, the five biggest losers were:

• Michigan (-28)
• California (-26)
• Washington (-25)
• Oklahoma (-25)
• Illinois (-24)

Arkansas claimed the most net branch openings in Q1 — three.