In a sweeping move aimed at streamlining operations and cutting costs, several major U.S. banks have announced plans to shut down around 60 branches across the country — including 14 in New York State alone.
The closures come as part of broader restructuring efforts to adapt to the evolving landscape of modern banking.
Flagstar Leads with Significant Cuts
Flagstar Bank, the rebranded successor of New York Community Bank, is taking the lead in this wave of closures. The bank has unveiled plans to eliminate roughly 60 of its retail locations across the country. According to the company, 14 of those will be in New York, where the bank has long maintained a strong presence.
The branch shutdowns are being rolled out in three phases, with the first already underway. Executives say the decision aligns with the bank’s strategy to lower operating costs by as much as $600 million by the end of 2025. With more customers shifting to digital banking platforms, Flagstar is also looking to reduce overlap in areas with multiple branches and reassess the need for physical locations.
Fulton Bank Also Scales Back
Fulton Bank, which took over several branches from the failed Republic Bank last year, is also closing 15 locations throughout the tri-state area. The bank attributes these closures to the growing consumer preference for online banking, a trend accelerated by the pandemic and sustained by ongoing digital innovation in the sector.
Several of Fulton’s New York branches will be impacted, reflecting a shift in strategy as the institution focuses more on digital services and consolidating operations.
TD Bank Joins the Trend
TD Bank has confirmed that it, too, is cutting back, with 38 branches set to close across 11 states and Washington, D.C. Among these, five branches in New York — including sites in Manhattan, Greenlawn, and Plattsburgh — will shut their doors by early June 2025.
The bank says these closures are part of a broader initiative to modernize its services, better allocate resources, and cater to customers’ increasing use of mobile and online platforms.
An Industry-Wide Shift
This latest wave of closures is indicative of a larger pattern sweeping across the banking industry. Other financial giants like Wells Fargo, Bank of America, and U.S. Bank have also trimmed their physical networks in recent years. In 2024 alone, nearly 70 bank branches in New York were closed, according to industry data.
While these moves are seen as cost-effective and technologically forward, they have raised concerns among communities that rely on in-person services. Older adults and those without reliable internet access may find themselves underserved by the digital-only model.
What Customers Should Know
As banks restructure and reduce their physical footprints, customers are encouraged to utilize mobile apps, online portals, and 24/7 customer service channels. Most banks have also stated they will offer transitional support and guidance to clients affected by the closures, including help in finding nearby branches and setting up digital services.
Still, the transition signals a significant change in how Americans interact with their banks — a shift that seems likely to continue as institutions prioritize efficiency and digital convenience over brick-and-mortar presence.