Bank branches are on the decline. With customers able to complete all their banking needs through their phones, banks no longer feel the need to shell out rent money on empty brick-and-mortar locations.
If it seems like your local bank has been taken over by a large national bank, you might not be wrong.
The number of commercial banks has been steadily declining since 1984 when there were 14,496 commercial banks, according to data from the Federal Deposit Insurance Corporation (FDIC).
In 2025, there were just 3,806. And with less banks comes less bank branches.
Bank branch contractions
- The number of bank branches in the U.S. declined by 19% from 2014 to 2024, according to the Federal Reserve.
- Average distances to American’s nearest branch increased modestly during the same time frame, by 0.02 to 0.28 miles, the same study found.
- Meanwhile, Americans still value their bank branch. A consumer study from Accenture found that 64% of bank customers will go to a branch if they can’t solve an issue online.
There are going to be fewer bank branches this year as well.
More bank branches closing in 2026
There have already been 178 bank closures in the first three months of the year, TheStreet reported.
And now a Maryland-based bank is planning to close two of its branches, according to a review of filings from the Office of the Comptroller of the Currency.
Shored United Bank is closing two branches it acquired during a 2021 merger with Severn Bancorp.
Shored United Bank branches that are closing
- 413 Crain Highway South, Glen Burnie, Maryland
- 2151 Defense Highway, Crofton, Maryland
When the merger was announced, the company praised the increased market opportunity, according to a company filing.
The merger created the third-largest bank headquartered in Maryland. Shored United Bank has done pretty well in the five years since it acquired Severn. The bank announced its net income in the fourth quarter of 2025 increased by $1.5 million, largely due to income from higher interest rates.
As fewer Americans visit their bank in person, more branches are closing.
Why are so many bank branches closing?
Shored United Bank’s branch closures are just the latest in a trend that has been happening for several decades.
Bank customers no longer go to branches to deposit checks or seek out information about their accounts. Instead, they can find out the information they need through their bank app or get insight online.
Some are even getting financial advice through social media, a trend that the Federal Reserve has noted could lead to increased financial losses, as many financial influencers are not trained to give financial advice.
More bank stories
Still, if your bank branch closes, you shouldn’t be too worried, David Danielson, managing director at accounting and advisory firm Wolf & Company, told TheStreet.
That’s because your money is protected by the FDIC. Instead, the sheer number of products available online can be the biggest challenge for customers.
“As fewer people walk into a branch and talk to someone they trust, financial decision‑making can become more confusing; not because there are fewer choices, but because there are too many,” Danielson said.