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Toronto-based TD Bank and Hicksville, New York-based Flagstar Bank have announced plans to shutter numerous branches across several states.
TD Bank confirmed to American Banker that it intends to close 38 branches in 10 states and Washington, D.C. And a recent bulletin from the Office of the Comptroller of the Currency (OCC) show that Flagstar Bank is closing 24 branches in five states.
The affected TD branches will close by June 5, the bank said. The closures involve branches in New York, New Jersey, Pennsylvania, South Carolina, Virginia, New Hampshire, Maine, Connecticut, Florida, Massachusetts and Washington, D.C.
In October 2024, TD Bank agreed to pay more than $3 billion in fines after pleading guilty to charges that it conspired in failing to maintain an anti-money laundering program.
“As part of our normal business practices, 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. After a recent analysis, we made the difficult decision to close 38 locations, effective June 5. We are committed to making this transition as smooth as possible for customers and look forward to serving them at one of our 1,100 TD Bank locations or through our digital banking products and services,” TD shared in a statement via email.
Flagstar Bank’s parent company, Flagstar Financial, revealed in its fourth-quarter 2024 earnings call in January that it was planning to close “approximately” 20 private client offices and 60 retail branches.
In October, Flagstar laid off 700 employees and anticipated the transition of another 1,200 to Mr. Cooper Group as part of the sale of its third-party origination (TPO) business and mortgage servicing rights (MSRs).
It was later confirmed that Mr. Cooper would not be onboarding as many Flagstar employees as previously expected.
Chief financial officer Lee Smith framed the Flagstar branch closures as “real estate optimization.” When asked about branch consolation, he reportedly said that “there are a couple of operating centres that we are looking to consolidate that we own and move out of those into smaller facilities. There were about 20 private client retail locations that we are looking to consolidate. And they are in close proximity to other locations. So we feel we can be more efficient and not lose anything from a customer service point of view.
“There are approximately 60 retail branches, most of which we lease, that we are looking to consolidate,” he added. “Again, these are close to other locations, so we do not feel there’ll be any disruption to the customer experience. We’re phasing the closure of those branches in three different phases, one of which is already underway, and then a further two-phases that will occur later this year.”
Flagstar, formerly known as New York Community Bancorp, did not disclose the locations of the branch consolidations. But OCC records indicate that the branches are in New York, New Jersey, Michigan, Indiana and Ohio.
Flagstar did not immediately respond to HousingWire’s request for comment.
According to data from Inside Mortgage Finance, Flagstar is the 25th largest originator in the country, producing $14.9 billion in volume last year. TD Bank is the country’s 37th largest servicer with $42.2 billion in owned servicing rights as of the fourth quarter.
