U.S. banking giant confirms branch closures across multiple states

One of the biggest U.S. financial institutions is shutting down multiple branches. These closures come amid ongoing economic shifts that first intensified during the pandemic, forcing many businesses, banks included, to adapt their services rapidly. Who might feel the impact most strongly this time?

Over the past few years, stay-at-home measures and heightened online shopping have changed how people manage money. Many now prefer digital platforms for deposits, transfers, and bill payments, reducing foot traffic at traditional bank locations.

Banks once featured long rows of teller windows and bustling lobbies. Today, streamlined technologies and self-service kiosks are replacing these large spaces. Consequently, national and regional institutions are evaluating every branch’s profitability and deciding which ones should remain open.

Flagstar Bank restructures operations to cut costs and improve overall profitability

Flagstar Bank, ranked among the nation’s top 30, recently revealed plans to close a total of 60 branches and 20 private-client locations. So far, 28 closures have been announced in filings with the Office of the Comptroller of the Currency.

According to the bank, these measures reflect a broader effort to reduce expenses, following a reported net loss of $845 million in 2024. CEO Joseph Otting noted that Flagstar aims to return to profitability by the end of this year. Layoffs, streamlined branches, and the sale of certain mortgage operations are among the steps Flagstar is taking to stabilize its finances.

Complete list of affected locations underscores this year’s widespread banking realignments

Below is a table of the 28 Flagstar branches already scheduled to close. These span multiple states, from New York to Arizona:

More closures will likely follow, as the bank finalizes its consolidation plans through 2025. Many institutions are grappling with online banking’s rising popularity and changing economic conditions. For customers, keeping track of official notices and exploring digital or alternative branches will be critical.