PNC plans for surge of new branches, despite industry's digital push

The traditional bank branch has been going the way of the landline phone for some 20 years, with major national and regional institutions reasoning brick-and-mortar banking is too costly in a digital-first financial world, 

To wit: The American Bankers Association, in a July report, found banks and credit unions nationwide shed a net 8,500 branches over the past four years. That dropped the total count of branches to 95,000, the ABA reports, 16% below peak levels from 2016. 

Pittsburgh-based PNC Bank is bucking that trend. In February, the bank, with $559.7 billion in assets, announced it would be investing $1 billion to open more than 100 new branches and renovate more than 1,200 current locations by 2028. By November PNC had increased the investment by $500 million and doubled the amount of new branch output — including 20 new branches in Tampa Bay and additional locations in Miami and Orlando.

Chad Loar, PNC's regional president of west and central Florida, covering a quadrant of Tampa, Orlando, Sarasota and Naples, notes the goal was always increased branch density, but it was a matter of striking when the time was right.

“When was that going to happen? That was the question. And I think they [leadership] came and said, ‘Listen, let's go now. We know. We know we want to do it. We know we need to make the investment. We know that's where the migration growth is, and we just needed more.”

Loar, the former chairman of the Tampa Bay Partnership, among other civic and business leadership roles in the region, says that even in a digital-first world customers still seek the in-person touch for big purchases and other financial decisions. 

Courtesy image

“What we've seen and shown over the years is the importance of having a branch is still as important and vital as it was five years ago, 20 years ago and beyond," he says. "We have data. We follow our clients' demands. We follow the trends.” 

Additionally, it tends to be established customers who lean on digital, but first time customers prefer to come into a branch to have their questions answered, according to Loar.

PNC is making other investments into the Tampa Bay region, beyond branches. 

In September, the bank became the official sponsor of the Tampa Bay Lightning. While details of the partnership are still being flushed out, Loar says the two organizations have a lot in common in terms of investment in the community, and he is looking forward to incorporating PNC’s Grow Up Great program in the partnership, which supports early childhood education for children from infancy until five years old. “They said they would really love to learn from us, or work with us and do closely more there,” Loar says.

PNC also donated $1 million to the Florida and North Carolina regions for hurricane relief. The company is still deciding how to deploy the money, which will likely be available in 2025. 

One of the teams Loar oversees was responsible for being eyes on the ground during the aftermath of the storms. “We drove up and down the coast, just going to the towns, seeing which town, which cities, what areas were hit, where, taking pictures, that type of information, so we could get it back and say, ‘Hey, here's what's going on’ and we've done that,” Loar says.

Hurricane season wasn’t the only challenge. Higher interest rates and inflation have taken on a toll on many banks.

“It's been a slower year in credit demand in general,” Loar says, “in the banking industry as a whole, as well as capital markets in M&A. So the last 12, 18 months has been slower. Despite this, the numbers from the corporate banking side are reported to be ‘one of our best years.'"

PNC established a presence in Tampa Bay in 2011 and Loar has been with the team for almost as long. To him, 2024 was the fruit of his market growth labor and 2025 is the next big chapter.

“I think the takeaway is just, you're going to continue seeing us. Been here 13 years. We're not going anywhere," he says. "We're going to only grow, our brand is going to get bigger, but we're going to continue doing more here, and we want to make sure we do it the right way and the thoughtful way.”