Banks are closing dozens of branches in less desirable areas to cut costs as financial pressure increases from higher interest rates and distressed commercial mortgages on office buildings.
Bank of America, Wells Fargo, JPMorgan Chase, U.S. Bancorp and a handful of smaller banks have all recently closed or will soon close branch offices nationwide. The branches set for shutting are located in Atlanta, Dallas, Los Angeles, Phoenix, San Francisco and other large markets.
The Federal Reserve’s rate hikes have pressured bank profits because it forces them to pay higher interest on customers’ deposits. Banks are also struggling as reduced demand for office properties is contributing to distressed commercial mortgages on those buildings.
Bank of America requested regulatory approval this month to close 20 branches. Three branches slated for closing are in the San Francisco Bay Area. The remainder are in New York, Florida, Connecticut, Pennsylvania, New Jersey, Texas, Oregon, Wisconsin and other parts of California.
Even while Bank of America is closing locations, the company is opening new branches in other markets that it considers more attractive. Bank of America said in June that it planned to expand into nine new markets, including New Orleans and Milwaukee, over the next four years, giving it a total footprint that spans about 200 markets in 39 states.
Wells Fargo this month closed 15 branches in 11 states, including California, Pennsylvania and New Mexico. However, it is also renovating some branches and plans to open new branches in Chicago and other markets, Chief Financial Officer Mike Santomassimo said during a Friday conference call.
Failed Bank Locations
JPMorgan last month completed the closing of 21 branches in California that it inherited in May from its acquisition of the failed First Republic Bank. It plans to rebrand the other 63 First Republic branches that it acquired as Chase Bank.
The global financial services firm may shut additional former First Republic branches next year or convert some First Republic locations to JPMorgan Chase offices to provide wealth management and other services, a JPMorgan executive said in May during a meeting with investors.
U.S. Bancorp closed four branches this month in Colorado, Illinois, Kentucky and Minnesota. The Minneapolis-based company also asked for regulatory approval to close an additional five branches, including two in Louisville, Kentucky.
Smaller banks that asked this month for approval to close branches include City National Bank in Lexington, Kentucky; Fulton Bank in Bethlehem, Pennsylvania; and Bank First in Green Bay, Wisconsin.
Some branches that have recently closed or are slated for shutting include:
- Bank of America, 6 E. Trenton Ave., Morrisville, Pennsylvania.
- Bank of America, 70-80 Farmington Ave., Hartford, Connecticut.
- Bank of America, 200 Kentucky St., Petaluma, California.
- Bank of America, 7900 Shoal Creek Blvd., Austin, Texas.
- Chase Bank, 3430 S. Redwood Road, Salt Lake City.
- Chase Bank, 12701 W. Hampton Ave., Butler, Wisconsin.
- U.S. Bank, 610 Opperman Drive, St. Paul, Minnesota.
- Wells Fargo, 1420 W. Mockingbird Lane, Dallas.
- Wells Fargo, 4505 Douglas Ave., Des Moines, Iowa.
- Wells Fargo, 2745 W. Carefree Highway, Phoenix.