US banks record 152 branch closings, 79 openings in October

U.S. banks closed 152 branches and opened 79 in October, bringing the total number of active branches to 79,047, according to S&P Global Market Intelligence data.

Net closures in the month were 73, a decline from 86 in September and a significant drop from the trailing-12-month average of 185 net closures. Since November 2021, banks have shuttered 3,264 branches and opened 1,040.

After cutting their branch footprints in 2020, 2021 and the first seven months of 2022, banks have been striking a balance between reducing branches and increasing digital adoption. This resulted in a slower pace of net branch closings in recent months.

Citizens leads the list

Citizens Financial Group Inc. nabbed the first spot among the most active net closers in October, with 14 closings and no openings. The company is making "meaningful strides forward with our national digital strategy and tech modernization," Vice Chairman and CFO John Woods said during the company's third-quarter earnings call.

Earlier in 2022, Citizens migrated its online-only bank, Citizens Access, to a fully cloud-native platform.

"Our vision is to migrate our core branch deposits to this modern platform over time, which will be a key change in efficiency and flexibility in terms of implementing upgrades and enhancements," Woods said.

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JPMorgan Chase & Co., Wells Fargo & Co. and Bank of America Corp. — three of the Big Four U.S. banks — continued to be on the list of most active net closers.

JPMorgan closed 24 branches and opened 11. The company logged an 11% year-over-year increase in expenses to $8 billion in the third quarter, fueled by investments in technology and branches, among other areas, CFO Jeremy Barnum said on the company's earnings call.

Wells Fargo, which recorded 17 branch closings and four openings in October, continues to invest in its technology platforms and digital capabilities, President and CEO Charles Scharf said on the company's third-quarter earnings call. During the period, Wells Fargo unveiled Wells Fargo Premier, an integrated banking, lending and investment offering for affluent clients, across its entire branch footprint and began a branded digital experience, among other things.

Bank of America shuttered 11 branches and opened two in October and closed 328 branches and opened 45 over the last 12 months. Despite the drop in the number of Bank of America branches compared to a year ago, the company has "more people in them because we continue to build out the relationship management capabilities and branches," Chair and CEO Brian Moynihan said on the company's third-quarter earnings call.

Four banks were tied as the most active net openers with two openings each: FB Corp., M&T Bank Corp., Toronto-Dominion Bank and Truist Financial Corp.

Closures by geography

In October, the region with the most branch net closures was the Northeast with 34, up from 27 in September and 28 in August.

The West region was second with 28 net closures, followed by the Southeast region with eight.

Pennsylvania had the most net closures on a state-by-state basis with 19. California was second with 15, and New Jersey was third with seven.

The state with the most net openings was Minnesota with four, followed by Florida with three.