The nation’s biggest banks have been quietly closing regional branches and cutting thousands of jobs.
A report published by S&P Global found that US banks shut the doors of 439 branches in Q3 2024. That’s an average of nearly five shutdowns every single day and marks the steepest quarterly net branch closings since early 2022.
In total, over 1,000 branches were shuttered last year. Now, according to Kiplinger, “Branches are disappearing nationwide while the formation of new banks has slowed to a trickle.”
And a new survey by GoBankingRates found that the closures came despite the fact that 45 percent of Americans still prefer to carry out their banking needs in person.
Bank of America topped the list in 2024 as it filed close to 168 of its locations.
In second place is US Bank, which filed notice to shutter up to 156 of its branches.
Wells Fargo shut down 126…
And JPMorgan Chase, America’s biggest and wealthiest bank, closed 103…
The trend is continuing in 2025 as major US banks including Chase, Bank of America, and TD bank have already filed paperwork to shut down 272 branches in the first three months of the year.
Why are so many bank branches closing?
Some analysts say it’s due to simple supply and demand.
With the rise of digital banking technology, customers can complete transactions with a simple click of a mouse or tap on a cell phone.
This means fewer people are relying on traditional brick-and-mortar banking.
Dwindling foot traffic means lower profits for regional branches. And without the deposit inflows and the ability to remain profitable, banks are restructuring to adjust.
In a company statement, Boston’s Santander Bank explained:
“Like many industries, our customers’ preferences have changed, with more customers choosing to bank with us online … Therefore, we are … refining our branch footprint and increasing our investment in digital capabilities to align with the evolving needs of our customers.”
The question is:
Are all these closures only about digital banking and supply and demand shifts?
Perhaps…
But another undercurrent is happening at the same time and can also explain this bank branch closure trend.
Banks are going deeper into financial stress, and this affects Main Street as well.
Research released by Epic Bankruptcy Analytics, for example, shows Chapter 11 commercial bankruptcies jumped 16% in January 2025 compared to January 2024…
Small business bankruptcies went up 7%…
And consumer filings jumped 13%…
In total, bankruptcy filings increased to 41,492 in January 2025 compared to 36,629 in January last year.
“Total bankruptcy filings continue to grow double-digit percentages each month,” says Michael Hunter, Vice President of Epiq AACER, a prestigious bankruptcy services platform.
The many bank branch closures, commercial bankruptcies, small business bankruptcies, and personal bankruptcies we’re seeing are more than line items in an official report.
When businesses close their doors—banks or otherwise—real jobs and incomes may be lost. And when real incomes are lost, real families may experience real financial challenges, they spend less, and here we go into a real recession.
“The shrinking of branch networks,” says The National Community Reinvestment Coalition, “threatens local economic activity.”
And this growing pressure on local economic activity…
Combined with the rising macro pressures of persistent inflation, high interest rates, a shrinking US economy, global geopolitical conflicts, and more…
May mean what we’re seeing is more than a simple shift from traditional foot traffic to digital banking: it may be a preview of much bigger economic challenges we all have to face.
Please don’t hesitate to reach out to us with any questions you may have.
May you be safe and well during these uncertain times.
Todd Sawyer, Director of Client Education
Colonial Metals Group