TD Bank and Flagstar Bank Announce Strategic Branch Closures
TD Bank’s Upcoming Branch Closures
TD Bank has announced the impending closure of 38 branches across several U.S. states by June 5, aiming to realign its store network with customer preferences and needs. The affected locations are situated in:
- New York
- New Jersey
- Pennsylvania
- South Carolina
- Virginia
- New Hampshire
- Maine
- Connecticut
- Florida
- Massachusetts
- Washington, D.C.
In a statement, TD Bank emphasized its commitment to providing a seamless transition for customers, assuring them of continued service through its remaining 1,100 locations and digital banking services.
These changes follow a significant legal setback for the bank, which in October 2024, agreed to pay over $3 billion in fines related to a guilty plea concerning lapses in maintaining an effective anti-money laundering program.
Flagstar Bank’s Consolidation Plans
Following suit, Flagstar Bank, under Flagstar Financial, has outlined its strategy to close approximately 60 retail branches and around 20 private client offices. This information was shared during their fourth-quarter earnings call in January.
Recent workforce changes include the layoff of 700 employees, with an expected transition of 1,200 more to Mr. Cooper Group due to the divestiture of its third-party origination business and mortgage servicing rights.
Chief Financial Officer Lee Smith described the branch closures as a form of “real estate optimization.” He explained plans to consolidate operational centers into smaller facilities while maintaining customer service quality. The planned branch closures are phased, with the first stage already launched, and the remaining two stages to occur throughout the year.
The consolidation will mainly focus on locations in New York, New Jersey, Michigan, Indiana, and Ohio, but specific closure sites have not been publicly detailed yet.
Flagstar is recognized as the 25th largest mortgage originator in the country, achieving $14.9 billion in volume in the past year, while TD Bank ranks 37th in terms of servicing, handling $42.2 billion in owned servicing rights as of the last quarter.
