The Shadow
COVID-19 has contributed to 2,927 bank closings in the U.S. in 2021, a record number surpassing the 2,126 that closed in 2020.
According to S&P Global Market Intelligence, COVID-19 contributed an increase in the number of customers who remained in their homes for longer periods of time and became reliant on mobile and digital channels for banking.
Kevin Persinger, bank manager of Primis at 511 Main Street in Clifton Forge, acknowledged that he has received notification that Primis will close its Clifton Forge location on May 26.
Persinger remarked, “The main cause is less foot traffic and more online banking.”
Truist Bank in Clifton Forge that resulted from a merger between BB&T and Sun Trust recently closed its branch on Main Street in Clifton Forge and its Branch at 116 W. Riverside Street in Covington while keeping its location at 1113 S. Craig Ave. in Covington open.
The Town of Clifton Forge that has seen its population shrink from nearly 10,000 in 1905 when the Historic Masonic Theatre was built at 510 Main Street to 4,000 currently, will soon have two rather than four banks to serve its residents.
Highlands Community Bank based at 307 Thacker Ave. in Covington has a branch in Clifton Forge at 1501 Main Street, and First Citizens Bank at 540 Main Street that was once Mountain Bank before it became Crestar Bank, remains in business after recently building a new bank building.
Wells Fargo, one of the oldest banks in the U.S., closed more banks in 2021 than any other bank by shutting down 267 nationwide. It still operates 4,894 banks at brick and mortar locations. One of its branches at 246 W. Main Street in Covington remains open.
S& P Global Market Intelligence also reported that aggregate takeovers resulted in more than $77 billion in 2021, the most since 2006.
Another reason for the record number of closing listed is bank mergers that contributed to the cutbacks in branch locations.
One such merger took place in 2019 before the COVID-19 pandemic. BB&T merged with SunTrust to form Truist Financial Corporation, an American bank holding company located in Charlotte, N.C.
The name change from BB&T to Truist Financial only came about recently, however, along with the news that the Clifton Forge branch would be shutdown.
Truist was founded in 1872, and before COVID-19 struck in 2020, the company’s employees totaled 54,982.
