By Rachel Kim, Senior Correspondent
TD Bank has announced it will close 38 of its branches across ten U.S. states and Washington, D.C., by June 5, 2025, a strategic move affecting nearly 4% of its more than 1,100-branch network. The decision comes during a year of significant transformation for the bank, including legal challenges and a realignment of its retail footprint in response to changing consumer habits and regulatory pressures.
Massachusetts will bear the brunt of the closures, with multiple locations slated to shut down. New York and New Jersey follow closely behind, reflecting a broader reshaping of TD Bank’s physical presence in the Northeast. The full list of affected locations spans Connecticut, Florida, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, South Carolina, Virginia, and Washington, D.C.
Restructuring Amid Legal Turmoil
The branch reduction follows a turbulent 2024 for TD Bank, marked by a $3 billion settlement with the U.S. Department of Justice. The settlement resolved a long-running investigation into the bank’s anti-money laundering controls, which federal authorities deemed insufficient. According to court documents, TD Bank failed to identify and report suspicious transactions, enabling criminal groups to launder over $670 million between 2014 and 2023.
As part of the agreement, TD Bank accepted a three-year monitorship and a five-year probation period. The terms also prohibit the bank from opening new branches or expanding assets without prior regulatory approval, placing a significant constraint on its operational flexibility.
Leadership Transition and Strategic Realignment
In tandem with the closures and regulatory reforms, TD Bank is undergoing a leadership transition. CEO Bharat Masrani is expected to retire later this year. Raymond Chun, currently Group Head of Canadian Personal Banking, has been named as his successor. Chun is anticipated to lead the bank through its digital evolution and compliance overhaul, with an emphasis on customer trust and regulatory integrity.
Despite the retrenchment, TD Bank is not retreating entirely from brick-and-mortar banking. New branches recently opened in Brooklyn and the Bronx in New York, as well as in downtown Boston, suggest a deliberate effort to focus on high-traffic urban locations while scaling back in less utilized areas.
Shifting Toward Digital Banking
The closures align with a broader industry trend as major U.S. banks increasingly pivot toward digital platforms. With more customers opting for online and mobile banking services, the demand for physical branches has declined sharply. TD Bank, like many of its peers, is responding by consolidating its network and investing in digital tools to enhance customer experience.
While this move may inconvenience some traditional customers, especially older adults and those in rural areas, TD Bank has promised to maintain accessibility through its remaining branches and customer service channels. It has also pledged to invest in ATM expansion and financial literacy initiatives aimed at easing the digital transition for affected communities.
Full List of Closures
Although the complete list of affected branches has not been disclosed in its entirety, the bank confirmed that all impacted locations have been notified, and customers will receive further communication regarding account transitions and alternative nearby branches.
The closures are scheduled to conclude by June 5, 2025, giving customers and staff several months to prepare. Employees at the closing branches will be offered reassignment opportunities where possible, with severance packages available for those unable to relocate.
Long-Term Implications for U.S. Retail Banking
TD Bank’s downsizing reflects a new reality for retail banking, one that increasingly prioritizes digital engagement over physical infrastructure. As regulatory scrutiny intensifies and consumer preferences evolve, institutions must adapt rapidly or risk falling behind.
TD Bank’s current strategy may serve as a blueprint for other mid-tier and large-scale banks navigating similar challenges. The success of this transformation will likely depend on its ability to maintain service quality, uphold regulatory standards, and foster customer loyalty amid a shifting banking landscape.
