Bank Branches in U.S. Decline to Lowest Level Since 2005

By Saabira Chaudhuri and Emily Glazer 

The number of bank branches in the U.S. dipped to its lowest level since 2005 as banks ramp up mobile and online services and work to cut costs, according to new federal data released Monday.

Bank branch closures in the U.S. accelerated in the past year. The number of branches in the U.S. dropped to 94,725 as of June 30, down 1,614 branches or 1.67% from a year earlier and down 4,825, or 4.8%, from the peak number of branches in 2009, according to data from the Federal Deposit Insurance Corp.

Many banks have been cutting back on their branch footprints while simultaneously spending on developing their mobile capabilities. In addition to catering to changing customer behavior, banks also save money when customers transact through digital means.

Of the four largest U.S. banks by assets, Wells Fargo & Co. was the only one to grow its branches from last year. The number of Wells Fargo branches rose by 17 to 6,310 as of June 30. Other large banks decreased their branches, with Bank of America Corp. falling to 5,094 from 5,399; J.P. Morgan Chase & Co. dropping slightly to 5,679 from 5,694; and Citigroup Inc. cutting the number of Citibank branches to 958 from 1,031, according to the report.

Write to Saabira Chaudhuri at [e-mail] and Emily Glazer at [e-mail]

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