With online banking growing faster than ever, more people are skipping trips to physical bank branches. As a result, major banks are closing down locations to cut costs, and Flagstar Bank is the latest to make this move.
The financial giant recently announced that 16 of its branches in New Jersey and New York will be shutting down as part of a larger effort to restructure and improve profitability. This comes after the bank reported nearly $100 million in losses in 2024. In total, Flagstar plans to close 60 regular branches and 20 private-client locations in 2025.
If you’re a Flagstar customer, you may need to rethink your banking options as these closures roll out. Here’s what you need to know.
Why Are These Banks Closing?
The rise of digital banking is one of the biggest reasons behind these closures. With just a smartphone, customers can transfer money, pay bills, and manage their accounts without ever stepping into a bank.
According to Statista data from 2023, over 66% of Americans use online banking, and that number is expected to grow. As fewer people visit physical bank branches, banks are left with expensive real estate and high operational costs for locations that are rarely full.
Flagstar Bank’s CEO has stated that these closures are part of a strategy to cut costs on rent, staff salaries, maintenance, and utilities. He believes this move will help the company return to stable profitability.
However, the closures will force many customers to find new banking options, especially those who still prefer in-person transactions.
List of Flagstar Bank Branches Closing in NJ & NY
If you bank with Flagstar in New Jersey or New York, here’s a list of locations that will be shutting down soon:
New Jersey Closures:
- 1887 Morris Avenue, Union, NJ
- 155 Central Avenue, East Newark, NJ
- 23 Little Falls Road, Fairfield, NJ
New York Closures:
- 247-53 Jamaica Avenue, Bellerose, NY
- 720 Grand Blvd, Deer Park, NY
- 41-11 Bell Boulevard, Bayside, NY
- 8622 Bay Parkway, Brooklyn, NY
- 2335 New Hyde Park Road, New Hyde Park, NY
- 97-77 Queens Blvd, Rego Park, NY
- 3425 Veterans Memorial Hwy, Ronkonkoma, NY
- 5770 Hylan Blvd, Staten Island, NY
- 134-40 Springfield Blvd, Springfield Gardens, NY (Inside Stop & Shop)
- 4246 Broadway, New York, NY
- 1214 Castleton Avenue 4, Staten Island, NY
- 832 Jewett Avenue J, Staten Island, NY
- 31-06 Farrington Street, Whitestone, NY (Inside Stop & Shop)
- 93-22 Jamaica Avenue, Woodhaven, NY
How Will These Closures Impact Customers?
For many, the shift toward online banking is convenient and allows them to handle finances with ease. But not everyone prefers digital banking—many still rely on in-person services like safe deposit boxes, financial consultations, and cash deposits.
According to The Daily Mail, around 200 million Americans still deposit cash regularly, and 45% prefer face-to-face banking. With fewer branches, customers may need to travel further for banking services.
In addition, job losses are another major concern. As more bank branches close, many employees are left searching for new jobs in an industry that is rapidly changing.
What Can You Do If Your Local Branch Closes?
If your local Flagstar Bank branch is closing, here are a few steps you can take:
- Check Online Banking Options – Many Flagstar services can still be accessed through the bank’s website and mobile app.
- Find the Nearest Branch – If you still need in-person banking, locate the closest open branch before closures take effect.
- Switch to a Different Bank – If the nearest Flagstar location is too far, consider transferring your accounts to another bank with convenient locations.
- Look Into Digital Banks – Online-only banks like Chime, Ally, and SoFi offer full banking services without physical branches.
- Use ATM Networks – Check if your bank partners with ATM networks to withdraw cash without fees.
Final Thoughts
Bank closures are becoming more common as digital banking takes over. While Flagstar Bank’s shutdown of 16 branches in New Jersey and New York may be frustrating for some, it reflects a bigger shift in the banking industry.
As customers move toward online banking, traditional brick-and-mortar branches will continue to disappear. If your local Flagstar Bank is closing, it’s important to explore alternative banking solutions to ensure seamless financial management.
Stay updated as more banks announce closures—the banking landscape is changing fast!
