Report: Massive US Banks Now Continue To Shutter Branches
July 16, 2025 – In a striking reflection of the evolving financial landscape, major U.S. banks, including JPMorgan Chase, Bank of America, and Fifth Third, closed 16 branches during the week of June 29, 2025, according to data from the Office of the Comptroller of the Currency (OCC).
This wave of closures underscores a broader trend driven by the rapid rise of online and mobile banking, which has significantly reduced the demand for physical branches.
The closures, part of a record-breaking year for branch shutdowns, highlight the banking industry’s shift toward digital solutions and cost-cutting measures.
The OCC reported that JPMorgan Chase led the closures during this period, permanently shutting six branches, including locations at 6540 Fairview Rd, Charlotte, NC; 595 Ritchie Hwy, Severna Park, MD; and 1111 Polaris Parkway, Columbus, OH.
U.S. Bank, owned by U.S. Bancorp, followed with three closures, while Bank of America, Fifth Third, PNC, and Citibank each closed at least one branch, including Bank of America’s location at 8521 W Franklin Road, Boise, ID, and Fifth Third’s at 50 South Flamingo Rd, Pembroke Pines, FL.
The OCC also received 22 notices of planned closures and approved 19 during the same week, signaling more shutdowns to come.
This recent spate of closures is part of a larger pattern. Since 2018, U.S. banks have closed an average of over 1,600 branches annually, with the rate of closures doubling since 2020.
In the first quarter of 2025 alone, more than 300 branch closures were planned, with U.S. Bancorp leading at 50 net closures, followed by Wells Fargo (23) and Citizens Financial Group (21), according to S&P Global data.
Bank of America, PNC Financial Services, and Huntington Bancshares each reported 18 net closures during the same period.
The Driving Force: Digital Banking and Cost Efficiency
The primary catalyst for these closures is the surge in online and mobile banking.
As customers increasingly handle routine transactions—such as check deposits, bill payments, and account management—through digital platforms, the need for physical branches has plummeted.
A spokesperson for U.S. Bank noted, “Client’s banking preferences and behaviors are changing, including a rapid migration toward digital and mobile banking platforms, and a desire for greater simplicity.”
This sentiment is echoed across the industry, with banks like Bank of America and Wells Fargo emphasizing the need to balance physical presence with enhanced digital capabilities.
Economic factors, including high interest rates, slowed economic growth, and inflation, have also pressured banks to reduce costs.
The average freestanding branch costs approximately $2.6 million annually to operate, according to Bancography, a consulting firm advising banks.
Mergers and acquisitions have further accelerated closures by consolidating overlapping branches, particularly following JPMorgan Chase’s acquisitions of Bear Stearns, Washington Mutual, and First Republic.
While digital banking offers convenience, the rapid closure of branches raises concerns about access for certain demographics.
Research indicates that elderly customers, low-income individuals, and those from racially diverse backgrounds are disproportionately affected, as they may face challenges adapting to online platforms or lack reliable internet access.
The reduction in physical branches has also sparked fears of “banking deserts,” where residents must travel significant distances for in-person services like cash deposits or loan applications.
Nearly two-thirds of Americans still prefer physical branches for cash deposits, and over half value in-person advisory services, according to industry surveys.
Darren Kingman, a digital marketing expert, warned that closures could lead to longer wait times and a diminished customer experience, particularly as the number of customers per branch increases.
“The closure of these branches can be particularly problematic for elderly customers, who may have more difficulty with online and mobile banking services,” Kingman told DailyMail.com.
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A Glimpse into the Future
The pace of closures shows no signs of slowing, with some experts predicting that physical bank branches could vanish entirely by 2041 if current trends persist.
In 2023, the U.S. saw over 1,500 branch closures, and 2024 recorded 439 net closures in the third quarter alone.
California has been hit hardest, with 20 closures between April 20 and June 1, 2024, followed by significant reductions in the Midwest.
Despite the closures, some banks are bucking the trend.
JPMorgan Chase, for instance, announced plans to open 500 new branches by 2027, focusing on cities like Boston, Charlotte, Minneapolis, Philadelphia, and Washington, D.C.
The bank opened 195 branches in 2023, far outpacing competitors like Bank of America, which opened just 32.
As banks continue to consolidate their physical footprints, customers are encouraged to plan ahead.
Online banking and ATMs remain operational during temporary closures, such as those scheduled for federal holidays like Juneteenth on June 19, 2025, when Bank of America, Chase, and others closed all branches for 24 hours.
For permanent closures, customers may need to rely on nearby branches or fully transition to digital services.
As the landscape evolves, banks must balance cost efficiency with the needs of diverse customer bases to avoid leaving vulnerable communities behind.
Also Read: A Massive US Bank Is Now Freezing Money and Closing Accounts Per Reports
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