TD Bank and Flagstar Bank are both closing dozens of U.S. branches following recent periods of turmoil.
Toronto-based TD plans to close 38 branches in 10 states and Washington, D.C., the bank confirmed to American Banker. Meanwhile, Flagstar intends to shutter 24 branches in five states, according to
The affected TD branches will close by June 5, the bank said. The closures are part of "normal business practices," according to the bank.
"We regularly evaluate existing TD Bank stores, which may result in some closures, consolidations, or relocations as we look for opportunities to better align our network of stores with customer needs and preferences," TD Bank said in an email. "We are committed to making this transition as smooth as possible for customers."
TD plans to close branches in Connecticut, Florida, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, South Carolina, Virginia and Washington, D.C.
As for Flagstar, the Michigan-based bank had signaled its plan to close some locations earlier this year. The bank's parent company, Flagstar Financial, revealed in
Chief Financial Officer Lee Smith framed the branch closures as part of a broader effort to reduce operating expenses. "These actions will result in a leaner and much more efficient organization without compromising our commitment to safety and soundness," Smith said during the call.
The CFO said the closures would happen in three phases, one of which was already underway. The next two phases are scheduled for later this year. Smith expressed confidence that customers wouldn't feel a difference in service.
"These [branches] are close to other locations, and so we do not feel there'll be any disruption to the customer experience," Smith said.
Flagstar, formerly known as New York Community Bancorp, has been revamping its operations under a new leadership team that was installed after a near-death experience last year.
According to OCC records, Flagstar is planning to close branches in Indiana, Michigan, New Jersey, New York and Ohio.
Flagstar did not immediately respond to American Banker's request for comment.
TD, meanwhile, is streamlining its American footprint after facing severe penalties from U.S. regulators. Last October, the Canadian bank pleaded guilty to bungling its enforcement of anti-money-laundering controls. As punishment,
Since then, TD has been feeling the pain of those penalties. In the three months that ended on Jan. 31, profits at the bank's U.S. banking unit
Leo Salom, the CEO of TD's U.S. subsidiary, said during an earnings call last month that the bank would need to spend this year on strategic repositioning and investments in compliance. As part of the bank's repositioning, TD said in February that it would
"Our focus here is to leverage 2025 as that transition year, to make the investments we need to in the core franchise to be able to address some of our remediation activities," Salom said during the call. "And so we're doing those things to be able to enter into 2026 with a more normalized profile."
