US banks shutter 170 branches, open 82 in August

U.S. banks closed 170 branches and opened 82 in August, bringing the total number of active branches to 79,108, according to S&P Global Market Intelligence data.

This brings net closures to 88 at the end of August, a slight increase from 77 in July but significantly lower than the trailing-12-month average of 215 net closures. Since the start of September 2021, banks have closed 3,619 branches and opened 1,044.

The COVID-19 pandemic accelerated digital banking and led many banks to reevaluate their branch footprint and close locations. However, branch net closings have recently slowed as banks realized they need to balance between pushing for digital channels and keeping a physical footprint for competition.

SouthState on top

In August, SouthState Corp. was the top net branch closer with 29 closings and no openings. SouthState is on track to consolidate 30 of its branches in the third quarter, CEO John Corbett said on the company's second-quarter earnings call July 29.

Wells Fargo & Co. shuttered 24 branches and opened only one during the month, making it the second-largest net closer. Bank of America Corp., July's largest net closer, came in third with 24 closings and four openings.

Over the last 12 months, Wells Fargo has shuttered 233 branches and opened 10, and BofA has closed 357 and opened 42.

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The most active net opener in August was PNC Financial Services Group Inc. with nine openings and five closings, followed by Cadence Bank with three openings and zero closings.

Cadence Bank plans to consolidate 17 branches during the fourth quarter for estimated annual cost savings of about $8 million. The move comes amid the continued development of digital technology and online banking, as well as related customer behavior changes, Chairman and CEO James Rollins said on the company's second-quarter earnings call July 26.

Closures by geography

The most branch net closures in August occurred in the Southeast region at 31, although the number is notably lower than the 115 net closures in July.

The West region came in second with 21 net closures, and the Northeast region third with 17.

Statewide, Florida had the most net closures at 14, followed by Connecticut, South Carolina and Virginia at 10 each. Tennessee had the most net openings at six.