Banks hastened plans to consolidate branch footprints in the aftermath of the Covid-19 outbreak, which drove consumer use of mobile and digital channels, according to the 2021 projection, which takes into account 1,000 branch openings and nearly 4,000 branch closings.
Banks have also suffered a difficult operating climate, according to S&P Global, with low-interest rates eroding margins and necessitating a rethinking of spending. With 267 net closures last year, Wells Fargo led the way, followed by US Bancorp with 257 net closures.
Huntington Bancshares, based in Ohio, had the highest net branch closures among banks with at least 1,000 locations, closing 221 net branches and cutting its footprint by more than 16 per cent.
As part of its merger with TCF Financial Corp, Huntington undertook aggressive branch consolidation in order to achieve $490 million in expenditure synergies. Heritage Bank of Olympia, Washington, has the highest closure rate among community banks, closing roughly 18 per cent of its territory in 2021.
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