Bank of America branch closures now surge this year as the giant and others prepare for more shutters in the upcoming weeks alone.
Major banks like Bank of America, Chase, and Wells Fargo are at the forefront of a significant wave of branch closures, totaling 42 in just a few weeks — a trend that resembles a financial crisis for local communities.
The sector is facing substantial losses, resulting in diminished banking services for many areas.
According to the Daily Mail, U.S. banks have filed plans to shut down these branches, with notifications to the Office of the Comptroller of the Currency (OCC) occurring between April 1 and April 26.
A total of 14 banks are involved in these closures.
Flagstar leads with 16 branch closures, followed by Bank of America with nine. Chase and U.S. Bank each closed three branches.
The remaining closures involve Citizens Bank, Cumberland Valley, Fifth Third Bank, FSNB, KeyBank, Pacific Premier Bank, PNC, Warsaw FS, Wells Fargo, and Zions Bancorporation.
A Surge in Bank Branch Closures
In 2024, Bank of America led the pack by closing 132 branches in the first nine months, a figure that has surged to at least 168 by mid-2025, according to data from the Office of the Comptroller of the Currency (OCC).
Chase and Wells Fargo have also been aggressive, with Wells Fargo closing 92 branches and Chase shutting down 90 in 2024 alone, trends that have continued into 2025 with 32 and 90 additional closures, respectively, reported in the first quarter.
Between April 1 and April 26, 2025, 42 branches were closed across 14 banks, with Bank of America (9 closures), Chase (3), and Wells Fargo (1) dominating the list.
The broader picture is stark: 1,043 branches closed nationwide in 2024, and 272 closures were logged in the first quarter of 2025.
Experts predict a further 4.11% reduction in branch numbers by year-end, marking 2025 as one of the most significant years for bank consolidation since the 2008 recession.
Flagstar Bank led with 44 closures in Q1 2025, followed by TD Bank (37), U.S. Bank (35), Wells Fargo (32), and Bank of America (16).
Why Are Banks Closing Branches?
Several factors are driving this wave of closures, reflecting both economic pressures and technological shifts:
- Rise of Digital Banking: The shift to online and mobile banking, accelerated by the COVID-19 pandemic, has reduced foot traffic in physical branches. A 2024 Statista report noted that 45% of bank account holders still visited branches in Q4, down from 53% five years ago, but banks like Wells Fargo report that digital transactions now dominate, with mobile apps and ATMs handling most customer needs.
- Economic Pressures: Higher interest rates, implemented to combat inflation, have devalued banks’ fixed-income investments, squeezing profit margins. This forces banks to cut operating costs, with brick-and-mortar branches—expensive to maintain—being prime targets. The 2008 recession also tightened regulations, increasing compliance costs for physical locations.
- Industry Consolidation: Banks are merging or optimizing their networks, closing overlapping or underperforming branches. Wells Fargo, for instance, has emphasized “rightsizing” its footprint, combining older branches into fewer, modernized locations. Bank of America’s closures often target areas with multiple nearby branches to reduce redundancy.
- Changing Consumer Behavior: Younger generations, like Gen Z and Millennials, prefer digital platforms, while even older customers are adapting to online banking. However, seniors and those in rural areas, less comfortable with technology, are disproportionately affected by closures.
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Experts’ Take on Bank Branch Closures
Experts suggest that the banking sector is consolidating and increasingly shifting towards online services.
Bankrate’s chief financial analyst, Greg McBride, told DailyMail.com: “Industry consolidation — both in the number of banks and branches — is a long-standing trend that will continue, especially as more transactions move online.”
This shift particularly affects consumers and small businesses in rural areas, especially those reliant on physical banking for daily cash deposits or who lack transportation options.
The trend is not new; in 2024, 1,043 branches closed nationwide, with 272 already logged in the first quarter of 2025.
Flagstar has closed 44 branches this quarter, followed by TD Bank with 37, U.S. Bank with 35, Wells Fargo with 32, and Bank of America with 16.
Predictions indicate a further decline of 4.11% in branch numbers this year, according to a study by Self Financial.
Darren Kingman from Root Digital noted, “Retail bank closures in the US aren’t slowing.
The last time this many people shared a local branch was in 1995.”
GoBankingRates’ lead data researcher, Andrew Murray, added that while the shift to online banking is intensifying, more than half of Americans express concern over the increasing number of branch closures.
Additionally, 76% believe the banking system needs some form of reform.
Research suggests that the last physical bank branch in the U.S. could close by 2041.
However, many demographics still depend on physical branches for various services.
Nearly two-thirds of Americans prefer in-person cash deposits, and over half wish to consult with an advisor face-to-face.
The elderly, in particular, often struggle with mobile banking.
A spokesperson for U.S. Bank stated: “‘Client’s banking preferences and behaviors are changing, including a rapid migration toward digital and mobile banking platforms, and a desire for greater simplicity.
As we evolve along with our clients, we are reevaluating our physical footprint, and in some instances, consolidating branch locations in select markets.”
Wells Fargo echoed this sentiment, highlighting the importance of branches alongside digital services.
Their spokesperson remarked: “Branches continue to play an important role in the way we serve our customers in combination with our mobile app, online website, and ATMs.
As we optimize our branch network, we are focused on evolving our branch presence based on customer usage and the changing traffic patterns and retail landscape to best meet the banking needs of each community we serve.”
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