US Banks Close 64 Branches in One Week

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BANK RUN

US Banks Close 64 Branches in One Week. (Read Here)

Branch Closures: Major banks, including PNC Bank and JPMorgan Chase, are closing several branches nationwide due to rising costs and the increasing popularity of digital banking.

• PNC Bank: With the most filings, PNC Bank plans to close 19 branches across multiple states, focusing on cost-saving measures and shifting towards online banking.

• JPMorgan Chase: Following closely with 18 closures, JPMorgan Chase cites the rise of digital banking and cost-saving strategies as reasons for branch shutdowns.

• Other Banks: Citizens Bank filed 8 closures, U.S. Bank filed 7 closures, Bank of America filed 5 closures, and Citibank filed 2 closures. Several smaller banks also filed for branch shutdowns.

• Long-Term Trend: The closure of bank branches has been ongoing for years, with a 9 percent closure rate between 2017 and 2021, which doubled during the pandemic.

• Rise of Digital Banking: Increasingly, customers are using mobile devices for banking transactions, leading institutions to adopt digital platforms, as they are more cost-effective and convenient.

• Impact on Communities: Branch closures can negatively affect customers, particularly in small towns, creating "bank deserts" and limiting access to banking services.

Click here for the list of 19 PNC branches closing

🧠 EDITOR’S THOUGHTS

End of an era: Not too long ago bank properties were the darling of triple net assets. They have strong corporate guarantees, typically ground leases, rent bumps throughout the lease term, prime locations, long base terms…excellent triple net fundamentals… Now look over into the bullpen and ask that associate how often he goes to a physical bank branch…the answer is almost never.

Action Items: As digital banking continues to grab a larger market share, NNN investors will remain interested in strong bank locations with above-average deposits.

TRIPLE NET TENDIES

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