Wells Fargo, Capital One and and TD Bank bring their attack on physical branches into 2024 – each announcing closures in the the first week

Capital One, Wells Fargo and TD Bank all filed notices to close branches in the first week of 2024.

They plan to close locations in Louisiana, Texas and New Jersey, respectively.

Fifth Third Bank was the only bank to notify its regulator about opening a branch, according to the latest bulletin from the Office of the Comptroller of the currency (OCC) with notices received the week of Jan. 1.

It comes as Wells Fargo announced Friday that it beat fourth-quarter earnings estimates. CEO Charlie Scharf said this was made possible by higher interest rates and cost savings.

The number of bank branches in the U.S. peaked in 2011 and over the past decade the total number has shrunk by about 13,000, according to a combination of data from the FDIC and the OCC.

Wells Fargo CEO Charlie Scharf (pictured) said the bank’s strong performance last quarter was made possible by higher interest rates and cost savings

The Covid pandemic has catalyzed the already rapid rise of online banking and although 2020 saw the sharpest decline in branch numbers, closures have continued.

“The trend going forward is more consolidation of branch locations, but branches are not going away,” said Greg McBride, chief financial analyst at Bankrate.com.

“They will still serve banking activities, as a consultation center or as a sales floor, but they are being used less and less for routine transactions, which are increasingly done digitally,” he said.

McBride noted that while foot traffic to branches is declining, many Americans still have an ideological attraction to brick-and-mortar locations.

“Knowing there is a local branch is a big deal for consumers of all banks,” he said. “It’s valuable to know they can do it if necessary.

Banks closed branches in California and the Midwest at a higher rate than anywhere else last year, according to an analysis of OCC data from DailyMail.com.

Dozens filed notices to close a total of 1,566 branches. In contrast, they only informed the regulator of plans to open 472.

And the closures are palpable. DailyMail.com received emails from concerned readers that they now had to travel further to access a bank.

TD Bank said it would close a branch in Washington Township, New Jersey. Pictured is a branch in Manhattan

Capital One notified the OCC that it would close two locations in Louisiana. Pictured is a branch in New York City

California had by far the largest net closures, losing an average of 300 branches. The Seattle area also lost more than a dozen locations, while gaining just two.

But the rapid withdrawal of banks from some regions has been perhaps most pronounced in the Midwest. Michigan lost 36 locations during the year, but gained none. Illinois lost 60 branches and gained 18.

One reader said they now had to cross state lines to get to the bank.

“PNC closed our local branch that was three miles away. Now I have to go to a neighboring city or across the river to Ohio to make deposits or other banking needs,” they wrote. “It’s totally inconvenient and as a senior, the extra mile is a waste of gas.”

Another older reader from the early 1980s pointed out that driving long distances is not always feasible.

“This is all very disturbing for both my husband and me,” they said. ‘We have already had several closures of our banks and have to drive further and further to find our banks. What happens if we can’t drive anymore?’