U.S. Bancorp could close up to 450 branches in the coming years as more of its customers use digital tools for transactions and rely on brick-and-mortar locations less.
CEO Andy Cecere said in an earnings call Wednesday that the bank expects to close somewhere between 10 to 15 percent of its roughly 3,050 branches systemwide.
Minneapolis-based U.S. Bank, like many banks, is cutting branches in response to demand. Earlier this month, Denver Business Journal reported the bank was closing 11 branches in Colorado. U.S. Bank is the second-largest bank by deposits in the Denver metro area, according to DBJ research.
U.S. Bank reported more than 30 percent of its loan sales were from digital tools for the three months ending in February. That's up 25 percent from the same period a year ago.
What's more, a division of the United States Department of the Treasury recently removed a consent decree on the bank, allowing it to invest more resources into digital capabilities.
“We have a lot of momentum across our digital activities," Cecere said on the call.
It's unclear which branches will close, but the bank doesn't intend to exit any markets, a spokeswoman told the Business Journal in a followup call. Cecere added the bank will add and remodel some locations, based on demand.
Other banks are closing branches, too. San Francisco-based Wells Fargo & Co. has been closing hundred of branches. Wayzata-based TCF Financial Corp. has closed about 100 branches over the past five years.
U.S. Bank had other news to share on the call as well. The bank reported net earnings of $1.7 billion, or $1 a share, compared to $1.68 billion or 96 cents per share in the same period a year ago. Overall net revenue rose 2 percent to $5.58 billion, just below average analyst estimates of $5.59 billion.
"We had a good start to the year with momentum continuing across our lending and fee businesses," said CEO Andy Cecere in a statement.
