Citizens Financial Group to Close 15 Branches Across Six States

News Summary

Citizens Financial Group Inc. is set to close 15 branches, including one in East Providence, reducing its branch count in Rhode Island. The shift reflects a growing focus on digital banking services. Despite past closures, Citizens retains a strong market position with a 36% share of Rhode Island deposits. The decision coincides with a state proposal to acquire a Citizens office complex. Citizen’s commitment to employees affected by closures is evident as they encourage internal applications for open positions.

Rhode Island – Citizens Financial Group Inc. is set to close 15 branches across six states, including a standalone branch in East Providence at 275 Newport Ave. This closure is scheduled for January 22 and will reduce the total number of Citizens branches in Rhode Island from 54 to 53. However, no additional branches in the state or nearby Bristol County, Massachusetts, will close at this time.

Citizens has been actively reducing its branch footprint in Rhode Island over the years, reflecting a strategic shift towards the enhancement of digital and online banking services. In 2014, the bank operated 82 branches in the state, showcasing a significant decrease in physical presence. Despite the continuous closures, Citizens has maintained a strong market position, holding a 36% share of deposits in Rhode Island. This contrasts sharply with its nearest competitor, Bank of America Corp., which boasts a 20% market share.

The decision to close the East Providence branch aligns with Citizens’ ongoing strategy of supporting customers primarily through nearby branches in Pawtucket, as well as through its online and mobile banking platforms. This closure is part of a larger trend where Citizens reduced its branch footprint by closing 40 branches located in Stop & Shop supermarkets across Rhode Island and Massachusetts in 2020. The current round of closures will also see seven branches in grocery store locations shut down, but the East Providence site is unique as it operates without grocery store affiliation.

In response to the closure, Citizens is encouraging employees affected by the reduction to apply for other open positions within the company, reflecting a commitment to retaining its workforce in alternative roles.

Simultaneously, the closure of the East Providence branch raises questions about a related initiative led by Rhode Island Governor Dan McKee. The governor has proposed purchasing a 225,458-square-foot office complex owned by Citizens Bank in East Providence for a total cost of $33.7 million. The proposal is aimed at consolidating multiple state agencies and intends to save taxpayers on leasing costs, with projected savings of about $39 million over the next decade.

The assessed value of the Citizens office building stands at approximately $16.9 million. However, the total expenditure related to the proposed purchase could climb to $44.5 million when refurbishment costs are included. Citizens currently contributes around $405,000 annually in property taxes to East Providence, a figure that may be affected if the state acquires the property.

This proposal has garnered scrutiny from some lawmakers who express concerns about the lack of competitive bidding and the property’s location relative to state transportation routes. Additionally, there is skepticism regarding the fiscal responsibility of this acquisition given Rhode Island’s current financial challenges and the declining demand for office properties in the commercial real estate market.

As part of McKee’s budget proposal for fiscal 2026, the potential purchase of the Citizens office complex will be subject to further legislative scrutiny and discussion. This situation encapsulates the broader themes of banking service transformation in Rhode Island, where consumer behavior increasingly favors digital solutions over traditional banking methods.

Citizens’ adjustments to its branch operations reflect a national trend within the banking industry, yet the company has managed to retain a leading position in the local market despite these challenges. The upcoming closure of the East Providence branch marks another milestone in the ongoing evolution of banking services in the region.

Deeper Dive: News & Info About This Topic

• Providence Business News
• WPRI 12 News
• Boston Globe
• Providence Journal
• Patch
• Wikipedia: Banking in the United States
• Google Search: Citizens Bank Rhode Island
• Google Scholar: Bank Branch Closures
• Encyclopedia Britannica: Banking
• Google News: Citizens Bank