U.S. banks closed 95 branches and opened 46 in January, bringing the total number of active branches to 78,806, according to S&P Global Market Intelligence data.
Net closures in the month were 49, down from 76 in December 2022 and significantly lower than the trailing-12-month average of 161 net closures per month.
Branch closures have slowed with banks becoming more balanced between shuttering locations and stressing digital adoption in order to be competitive.
PNC leads the list
PNC Financial Services Group Inc. closed 21 branches and opened just three in January, making it the most active net closer. Over the last 12 months, PNC closed 142 branches and opened 18.
The second-most active net closer was Huntington Bancshares Inc. The bank shut 17 branches, mostly in the Midwest, and did not open any new locations. The company completed the consolidation of 30 branches, or 3% of its network, in the first quarter, according to Chairman, President and CEO Stephen Steinour.
"We're trying to simplify and automate our major customer processes, giving customers, through our digital capabilities, the ability to self-service, obtain their information, make their selections, all of which will reduce some of our mid and backroom operating areas in terms of headcount and make us more efficient," Steinour said at a Feb. 15 conference.
Wells Fargo & Co. also made the most active net closers list with 12 closings and zero openings. The bank shut down 179 branches and slashed branch staffing levels by 10% in 2022 and plans to continue that process, according to CFO Michael Santomassimo.
"We continue to focus on branch rationalization as digital adoption and usage among our customers are steadily increased," Santomassimo said on the company's fourth-quarter 2022 earnings call.
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In January, Fifth Third Bancorp and JPMorgan Chase & Co. were the most active net openers, each opening four branches without any closings.
Closing time in Midwest
The Midwest region recorded the most branch net closures in January with 27. The Northeast region ranked second with 19, followed by the West with 12.
On a state-by-state basis, California logged the most net closures with 10. New Jersey claimed the second spot with nine net closures, and Pennsylvania was third with eight.
Florida was the state with the most net openings at seven.
