SOME Bank of America customers will be forced to head elsewhere for assistance with their accounts soon.
The financial services company is conducting mass closures this year for branches in several states.
Bank of America is closing the doors on several branches this year (stock image)[/caption]
Customers may have to head elsewhere for banking needs (stock image)[/caption]
Those states include California, Florida, Illinois, Kentucky, Massachusetts, Nevada, South Carolina, Texas, Virginia, and Washington, per FinanceBuzz.
At least 19 in total are on the list to be axed with closing dates that have already passed or will arrive throughout summer and into December.
But, why the sudden shutdowns?
Brick-and-mortar locations for the top banks in the United States have been consistently trimming their footprint.
Since 2018, about 1,646 branches close every year, per data from fintech company Self Financial.
California has the highest number of closures in the past decade at 1,114, with Florida close behind at 1,091.
According to the weekly bulletin from the Office of the Comptroller of the Currency, at least 32 banks closed nationwide in March of this year alone.
Bank of America, JP Morgan Chase, Wells Fargo, PNC Bank, and several others were on the list.
FUTURE DOOMED?
For the first quarter of the year, that number is up to 272.
Experts note that should this pattern continue, physical bank locations could be extinct entirely by 2041.
The shutdowns follow directly alongside increases in digital banking solutions offered to consumers.
It’s possible to deposit checks, transfer funds, invest, and more through banks’ mobile apps.
Heading to a branch now only involves unique circumstances where speaking to a teller is required.
Additionally, at least 69.9%, or over a third of Americans, also noted in a recent survey that they believed the banking system needs to change.
Bank of America Closures
- California
- 134 South Church Street, Grass Valley
- 1510 The Alameda, San Jose
- 3150 Campus Drive, San Mateo
- 4551 2nd Street, Suite 120, Davis
- 16811 Algonquin Street, Huntington Beach
- 5800 Santa Rosa Road, Camarillo
- 445 Powell Street, San Francisco
- Florida
- 10690 Forest Hill Boulevard, Wellington
- Illinois
- 240 N Randall Rd, Lake in the Hills
- 3210 W IL Route 60, Mundelein
- Kentucky
- 201 Bastogne Avenue, Fort Campbell
- Massachusetts
- One Post Office Square, Lynnfield
- Nevada
- 399 South Fourth Street, Las Vegas
- South Carolina
- 910 Savannah Highway, Charleston
- Texas
- 1206 South Bowen, Arlington
- Virginia
- 9280 Old Keene Mill Road, Burke
- Washington
- 1201 Madison Street, Seattle
- 4323 SW Admiral Way, Seattle
- 9019 Rainier Avenue South, Seattle
Bank of America and several other institutions have begun evaluating whether or not the cost of maintaining some branches are really worth the actual foot traffic anymore.
RESTRUCTURING EFFORTS
This even includes popular banks like Flagstar Financial, one of the 30 biggest in the United States with around $100 billion in assets, per data from the Federal Reserve.
Flagstar plans to shutter at least 60 branches by the end of the year.
It currently has branches in nine states, including Arizona, California, Florida, Indiana, Michigan, New Jersey, New York, Ohio, and Wisconsin.
New York is losing the most with at least 14 to be taken away.
The closures come part of a three-stage plan for the company as it restructures to keep operating costs low.
It seeks to reduce rent, maintenance, and utility costs through the trimming of its footprint after citing a net loss of $845 million for 2024.
“We are on projections to be profitable now in the fourth quarter of this year,” Flagstar Financial CEO Joseph Otting recently told investors during an earnings call.
“I think this will ultimately mark the company’s turning point on its return to consistent profitability.”
The CEO of Wells Fargo also recently confirmed a significant update coming to its 4,349 branches.
TD Bank also confirmed it would shutter at least six locations in an iconic state in June.
