PNC led the nation in April branch closures

Jan 25, 2024

Pennsylvania shed more branches than any state during April — 14 — and its biggest bank tallied the most cuts, though the majority were in Maryland.

PNC Bank marked its second consecutive month as the nation's most active branch closer, according to a new report by S&P Global Market Intelligence, shuttering 21 in April after closing 30 in March. Of the April batch, eight were in Maryland, largely in-store supermarket locations.

Closures either completed or confirmed by PNC this year will reach 232 on Aug. 18. Many are among the 135 branches located within supermarkets PNC said last summer that would be cut in waves during 2023, chiefly in Maryland, New Jersey and Virginia.

Pittsburgh-based PNC Financial Services Group Inc. (NYSE:PNC) is the nation's sixth-largest bank by assets and ranks No. 1 in Pittsburgh by deposit market share. Around 100 of its approximately 2,400 branches are in the 10-county Pittsburgh metro.

S&P Global Market Intelligence noted that the national pace of branch closures in 2023 has slowed compared to the past couple years. For over a decade, more customers have opted for phone and digital transactions over visits to brick and mortar offices, prompting banks to close locations. That preference accelerated during the early days of the Covid-19 pandemic when branch lobbies were closed or restricted for safety reasons. Yet customers still need and want branches.

Nationwide, U.S. banks closed 130 branches in April and opened 51.

JPMorgan Chase & Co. added the most branches in April — 13 — but also closed six. That means it wound up with net seven openings.

During April, Pennsylvania lost 14 branches and added one, translating to 13 net closures. New Jersey shed 12 branches and one opened, for 11 net closures. New York cut 13 branches but added three new ones for 10 new closures.

The activity in April was largely on the eastern side of the commonwealth; Pittsburgh lost one branch as F.N.B. Corp.'s retail arm, First National Bank of Pennsylvania, closed a site in Squirrel Hill.

Of the six biggest branch-pruning banks last month, half operate in southwestern Pennsylvania. F.N.B. (NYSE:FNB), based in Pittsburgh, was No. 6, closing four branches. Columbus, Ohio-based Northwest Bancshares (NASDAQ:NWBI), cut eight. None of the top six opened any new branches in April, according to S&P Global Market Intelligence.

April's biggest closers are as follows:

Source: S&P Global Market Intelligence