US banks closed fewer branches in 2023 following record-shattering closures in the previous three years.

Accounting for openings and closings, a net 1,409 bank branches closed in 2023, compared with 1,854 in 2022 and 2,928 — the highest on record — in 2021, according to S&P Global Market Intelligence data. In 2023, 2,454 branches closed and 1,045 opened.

The pace of bank branch closures started to slow in mid-2022 on the realization that accelerating digital adoption needed to be balanced with keeping a physical footprint for competition. Some banks like PNC Financial Services Group Inc. — one of the most active net branch closers in 2023 — and JPMorgan Chase & Co. — the most active net branch opener — recently announced plans to build branches. PNC is committing about $1 billion toward opening over 100 new locations through 2028, and JPMorgan's Chase business will add over 500 branches by 2027.

"One key driver [for our Consumer & Community Banking business] is the branch strategy and the associated staff for that. In 2023, we built 166 new branches, and we're planning about a similar number this year," JPMorgan CFO Jeremy Barnum said on the company's fourth-quarter 2023 earnings call on Jan. 12. The company recorded 25 net openings in 2023, for a total of 4,905 active branches.

Wells Fargo leads net closers

Wells Fargo & Co. topped the list of net closers in 2023, with 293. CFO Michael Santomassimo said the company's customers continue to move to lower-cost channels, leading to fewer teller transactions and smaller handled call volumes.

Wells Fargo reduced its total number of branches by 6% from a year earlier, Santomassimo said on the company's fourth-quarter 2023 earnings call. "At the same time, we have been refurbishing our branches as part of an accelerated multiyear effort to transform and refresh our full branch network," the executive added.

U.S. Bancorp ranked second among the most active net branch closers with 224 branches shuttered on net, closely followed by PNC with 223.

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Truist Financial Corp., the fourth-most active net closer during the year, recently disclosed its plan to cut almost 4% of its branches in the first half of 2024 as part of efforts that include rightsizing its branch network.

"While the branch network presents opportunity for further efficiency in certain markets, we're seeing improvements in productivity due to excellent teammate execution and investments in technology as evidenced by the increase in net new deposit accounts," Truist Executive Chairman, CEO and President William Rogers Jr. said on the company's fourth-quarter 2023 earnings call.

First Citizens BancShares Inc., which acquired Silicon Valley Bank, booked 19 net closings while New York Community Bancorp Inc., which acquired Signature Bank, logged 16 net closings.

Toronto-Dominion Bank

Activity by state

Just over one-fifth, 297, of all banks that closed in 2023 were in California. Two banks — U.S. Bankcorp and Wells Fargo — accounted for almost 60% of these closures.

New Jersey ranked second with 97 net closings, and New York and Pennsylvania were tied for the third spot with 89 each.

Tennessee and Nebraska logged the most net branch openings with 12 each, although Texas notched the highest number of branches opened at 114.