Major US Banking Chain Announces Significant Reduction in Physical Branches
In a substantial strategic shift, TD Bank has revealed plans to close 51 of its retail branches across 13 states in the United States. This move represents approximately 10 percent of the bank's extensive physical network, which currently comprises over 1,100 locations nationwide. The decision underscores a broader industry trend toward digital transformation and reflects changing customer preferences for banking services.
Geographic Impact and Affected Regions
The closures will predominantly affect states along the East Coast, with a significant concentration in the northeastern United States. The specific states and district impacted by this wave of branch reductions include:
- Connecticut
- Florida
- Massachusetts
- Maryland
- Maine
- Washington, D.C.
- North Carolina
- New Hampshire
- New Jersey
- New York
- Pennsylvania
- South Carolina
- Virginia
- Vermont
This announcement follows a previous round of closures in June 2025, during which TD Bank shuttered 38 locations, with Maine and New Hampshire experiencing particularly notable reductions in their banking infrastructure.
Strategic Shift Toward Digital Banking
Leo Salom, Chief Executive Officer of TD Bank, articulated the rationale behind these closures during an investor conference in September. He described the move as part of the bank's comprehensive "reimagining" of its retail presence. "But, increasingly, clients expect greater personalization, and an elevated, more seamless omni-channel experience," Salom explained to attendees. "And to that end, we are accelerating investments in digital and mobile capabilities across sales, onboarding and servicing."
The bank has established ambitious digital targets as part of this transformation. TD Bank aims to increase digital acquisition to 50 percent of total sales while encouraging 70 percent of its customer base to utilize digital banking services. This strategic pivot reflects broader industry patterns where traditional banks are reallocating resources from physical branches to online platforms and mobile applications.
Customer Transition and Continued Service Commitment
A TD Bank spokesperson addressed customer concerns regarding the branch closures, stating: "We also regularly evaluate our network to ensure we're serving our communities where they need us, which at times results in store closures or relocations to nearby neighborhoods. In the meantime, we're committed to making these transitions as smooth as possible for clients and customers, serving them at more than 1,000 TD Bank locations or via whatever channel they choose."
This assurance highlights the bank's intention to maintain service accessibility through its remaining extensive branch network and multiple digital channels, even as it reduces its physical footprint.
Historical Context and Future Expansion Plans
Interestingly, this contraction in physical presence comes just a year after TD Bank announced ambitious expansion plans. In May 2023, during a quarterly earnings call, the bank outlined a strategy to open 150 new branches across the United States, with particular emphasis on the Southeast region. Salom specifically mentioned markets like Boston, Philadelphia, and New York as areas with "expanding communities, growing communities where we'll lean into." He added, "The Southeast is going to be a very important part of the overall equation."
Kelvin Tran, TD Bank's Chief Financial Officer, previously noted the bank's growth potential in the US market, describing it as a "relatively young bank" with "a lot of white spaces there." However, the status of these southeastern expansion plans now appears uncertain following the collapse of TD Bank's proposed $13.4 billion acquisition of Tennessee-based First Horizon bank, which was abandoned due to "uncertainty" according to a joint statement from both institutions.
Market Response and Financial Performance
Despite the planned reduction in physical branches, TD Bank's parent company, Toronto-Dominion Bank Group, has demonstrated strong financial performance. According to recent reports, shares have increased by 51 percent, suggesting investor confidence in the bank's strategic direction and digital transformation initiatives.
This development represents a significant moment in the evolution of retail banking in the United States, as traditional institutions balance physical presence with digital innovation to meet changing consumer expectations and competitive pressures in the financial services sector.
