The number of bank branch closures in the United States increased sharply in the month of May, with a net closure of 227 branches throughout the country. This is a 187.3 percent increase from April.
U.S. Bancorp, the parent company of U.S. Bank, topped the list of most active branch net closers in May with 133, all in California, and no openings.
The Minneapolis-based company’s pace of branch closings sped up again after slowing in the months before its completed acquisition of San Francisco-based MUFG Union Bank in December 2022. In the last 12 months, U.S. Bancorp closed 194 branches and opened only seven, S&P Global Market Intelligence data showed. Many of these closures were a result of consolidation.
Wells Fargo & Co. ranked as the second highest net branch closer, shuttering 38 branches and opening only one. On the company’s first-quarter earnings call, Wells Fargo CFO Michael Santomassimo explained the banks continued movements to adjust the bank’s branch footprint and setup in the consumer banking sector.
“Our branch network will continue to be the key to the business. But our customers expect us to provide them with increasingly digitized and seamless banking experiences across all channels,” Wells Fargo President and CEO Charles Scharf said.