During 2024 and 2025, the U.S. lost close to 1,500 bank branches (net).

As bigger banks merge and shutter offices, community banks are stepping in to fill the void they leave behind.

When acquired branches are closed due to close proximity with an existing branch, community banks provide added competition and choice.

Jumbo Rate News JRN 43:04

As Big Banks Consolidate, Community Banks Step In

After losing more than 900 bank branches in 2024, the U.S. lost  another 576 (net) during calendar 2025. 5-Star U.S. Bank N.A., Cincinnati, OH (6548) took the lead in 2025 with a net loss of 119 offices, but it wasn’t alone. (All banks with a net loss of three or more branch offices during 2025 are listed on page 5 of this week's issue of Jumbo Rate News.)

The biggest culprit? Mergers and acquisitions. U.S. Bank acquired  $100 billion MUFG Union Bank, NA, San Francisco, CA in 2023. In doing so, it ended up with many branches in close proximity to each other, some as close as the same shopping centers. In instances such as this, which is much more common with big bank mergers, branches are eventually consolidated.

Another to watch is the newly approved acquisition of 5-Star Comerica Bank, Dallas, TX (983) by 5-Star Fifth Third Bank,  NA, Cincinnati, OH (6672) (JRN 43:02). On the surface, we are looking at combining a $212.2 billion asset bank (Fifth Third) with 1,108 branch offices and a $77.4 billion bank (Comerica) with 360 branch locations. That’s $290 billion in assets and 1,468 offices. In reality, however, the two banks have overlapping operations and compete directly in 10 markets in Florida, Michigan and Texas. The writing is on the wall.

While big banks consolidate, however, many community banks are increasing their footprints. Some grow by M&A, others organically.

Our neighbor, for example, 4-Star Amerant Bank N.A., Coral Gables, FL (22953) currently operates through 24 Florida Branches, half of which are in Miami-Dade County. Three of those Miami-Dade branches were acquired in a 2006 transaction; the rest were grown organically.

Amerant Bank partners with local sports teams and arenas to raise brand awareness, then it opens new branches to cater to its new fans. In 2025, Amerant Bank opened three new offices, one each in West Palm Beach, Miami Beach and Tampa.

Another, 5-Star Bank of Bird-in-Hand (BIH), BIH, PA (59074), was established in 2013 in the heart of  Amish Country in Lancaster County. During its 13 years, Bank of BIH has slowly increased its presence.

In this rural area, people can’t always make it to a brick and mortar branch, so Bank of Bird-in-Hand brings the bank to the people. Of its 15 branches, only eight are brick and mortar. The other seven are mobile “Bus” branches. The Mobile Bus Branch schedule is posted on the bank’s website.

The schedule varies by the day and time. For example, on Mondays one can bank at any of eight locations, from the Produce Auction in Oxford to the Brandywine Shoe Shop in Honey Brook. On Thursdays, one bus (Bus #2) is at Dutch-Way Family Restaurant in Gap in the morning then heads to Greentree Hardware in Quarryville in the afternoon.

Bank of BIH caters to its community by meeting its customers where they are. In 2025, it added four new branches, two full-service brick & mortar and two more buses.

Until last year, 5-Star bankcda, Coeur D’Alene, ID (57074), another true community bank, operated through just four Idaho branches. In 2025, it crossed into Washington State with new offices right over the border in Richland and Spokane.

Established in 1966 as State Bank of Fargo,  5-Star Bell Bank, Fargo, ND (19581) has done its share of M&A, acquiring six smaller banks between 2003 and 2013. Since then, it has focused on organic growth. The two new branches opened in 2025 (Grand Forks, ND and  the Brainard-Baxter area of MN) brought its total branch count to 33.

5-Star Centreville Bank, West Warwick, RI (17764) entered Newport County in 2023, then opened a branch in Bristol County on July 1, 2025. That marked a milestone for Centreville Bank. It successfully achieved its goal of operating in each of Rhode Island’s five counties. Also new in 2025 was a branch on Main Street in Pawtucket, which marked the bank’s 4th location in Providence County.

Since it acquired Putnam Bank, Putnam, CT in 2020, Centreville Bank is not solely located in the Ocean State. It acquired seven Connecticut branch offices in that transaction.

5-Star TexasBank, Brownwood, TX (19559) is no stranger to acquisitions either. Its latest was in early 2022 when it acquired Texas Bank Financial, Weatherford, TX. Since then, it has opened four new brick and mortar offices in Weatherford (2023), El Paso (2024) and Fort Worth and Decatur (2025). Today TexasBank operates out of 19 branch offices in nine Texas counties. It has a long road ahead if it wants to have a presence in all of Texas’ 254 counties.

And finally, 5-Star Trustar Bank, Great Falls, VA (59183) was established in 2019 in Fairfax County. Its first three branches were right there as well: its headquarter office in Great Falls, followed by an office in McLean a few months later, then a third location in Reston in 2020. In 2021, Trustar ventured into Maryland with a branch in Potomac which was followed in 2022 with a DC office.

After a short breather, Trustar opened a Bethesda, MD office in February 2025 and then an Arlington, VA office a month later. Today, Trustar Bank operates through seven offices throughout the Greater Washington DC market.