It sounds like a riddle, but in fact, the U.S. lost more than 900 bank branches during calendar 2024 according to FDIC data. According to that same FDIC data, more than 900 new bank branches opened their doors as well.
Strange perhaps, but true.
As Big Banks get rid of branches in markets that add less to their bottom lines, they are also creating new offices in new or under-tapped markets. Community banks, on the other hand, grow slowly, with their focus fixed upon the communities they serve.
U.S. Bank Branches are Down… and Up
According to FDIC data, the U.S. lost more than 900 bank branches during calendar 2024. We didn’t have to look far to see where they came from. Sixteen Big Banks shed a combined 800 all by themselves.
You can find those Big Banks, along with all other banks that lost four or more branch offices during calendar 2024, listed on page 5. The banks are listed in descending order by the number of branches lost (as per FDIC data). Not all banks are reducing their footprints, however. In fact, many are doing the opposite.
According to that same FDIC data, more than 900 new bank branches opened their doors as well. We looked at the nation’s two largest banks as examples of the dichotomy—one added while the other subtracted offices. As always, though, there’s more to the story.
The largest U.S. bank, 4-Star JPMorgan Chase Bank, N.A., Columbus, OH (with assets of $3.584 trillion) reported back in 2023 that, aside from redundant branches it acquired from the failure of First Republic Bank in San Francisco, it was running out of branches to close.
That being the case, we were not surprised to discover that JPMorgan Chase reported a net increase of 68 branch offices during 2024. It was expanding or creating a presence in new areas (think Iowa and Mississippi), as it reduced its footprint in others (like California).
4-Star Bank of America, N.A., Charlotte, NC (the number 2 bank by assets, with $2.566 trillion) reported a net decrease in U.S. bank branches of 116 during calendar 2024. A look at a random week in December gave us a sense it was taking a similar tack to JPMorgan Chase Bank. The difference being, BofA still has more branches it would like to eliminate.
During the first week of December (December 1-7, 2024):
JPMorgan Chase Bank closed seven (7) offices: one each in CA, TX & WA and two in MI & IL. It opened six (6) others: one branch in each Fl, IA, MS & TN and two in PA. That gave it a net loss of one branch for that week.
However, that same week, JPMorgan Chase received approvals to open an additional 14 offices (all East of the Mississippi) and it submitted applications for six more.
Conversely, Bank of America closed seven U.S. offices and submitted applications to close 10 more during that December week. As for openings, BofA applied to open one new branch (ID) and received approval for two others (TN & NY).
The banks have similar branching strategies. They are both getting rid of branches in some areas while creating new offices in new or under-tapped markets. The scales tip in opposite directions to a net loss of branches for BofA and a net gain of branches for JPMorgan Chase Bank.
Most of the banks on page 5 are Big Banks. Community Banks don’t open (or close) branches rapidly like the Big Banks can, but they are more likely to hold onto the offices they have, expanding (or contracting) slowly along with their communities.
4-Star Citizens State Bank of Ouray, CO (B-1779), is a perfect example. Originally established in 1913, it took Citizens State Bank 107 years to open its fifth branch in (Nov. 2020) in Telluride, CO. It then began making plans for two new additions.
In October 2023, a branch was opened in Mountain Village, CO. That was followed by a seventh location in Montrose, CO, that opened in April 2024. This is how a community bank supports its neighbors.
5-Star Old Second National Bank of Aurora, IL (B-3603), went a different way. It purchased five branches from 5-Star First Merchants Bank, Muncie, IN (B-4365) (listed on page 5).
The branches opened as offices of Old Second on December 9, 2024. James Eccher, CEO of Old Second, extended a warm welcome to his new customers and team members, stating (and we agree) that these branches will be a meaningful addition to Old Second’s presence in the Southeast Chicago market.
While it continues to operate a large network of brick and mortar full-service offices in Michigan, Ohio, and Indiana (of course), First Merchants Bank is left with a solitary loan production office in Illinois.
5-Star Stockman Bank of Montana, Miles City, MT (B-16191) took a hybrid approach. After opening two de novo brick and mortar branches (Bozeman and Whitefish, MT) in 2023, Stockman Bank of Montana opened a de novo branch in June 2024 (Kalispell, MT).
One month later, Stockman Bank acquired three Montana branches from 5-Star HTLF Bank, Denver, CO (B-58458). (Again, you will find HTLF Bank listed on page 5.) Stockman Bank also announced it will be opening another de novo branch soon. It will be its first in the Bitterroot Valley and its 42nd full-service location; all are in Montana.
Originally established in 1944, Stockman Bank is proud to be Montana’s largest, family-owned, community bank. Its focus is Montanans, and it knows them well.
These are the attributes of community banks. While they continue to grow, albeit slowly, their focus remains sharp. They are there for the betterment of the people and businesses around them.