Schwab prunes 200 TD Ameritrade branches

As part of the scheduled consolidation of TD Ameritrade, Charles Schwab Corp. has reiterated plans to shutter about 80% of the TD branch offices.

Following up on comments made last month by Schwab senior executive vice president Joe Martinetto, a spokeswoman confirmed that with the closing of approximately 200 TD branches, the new footprint of the combined firm will include “over 400 Schwab and TD Ameritrade offices across the United States, one-third of them shared offices available to clients of both firms.”

“At present, nearly 90% of Schwab and TD Ameritrade branches are located within 10 miles of one other,” said Schwab’s Alison Wertheim.

“Addressing that considerable overlap will enhance our efficiency, enable us to continue to enhance services and keep costs low for clients,” she said.

The ultimate plan for the consolidation that is expected to take more than 18 months to complete will include more than 150 stand-alone Schwab branches, and about 140 shared branches with Schwab and TD professionals serving their respective clients.

In those shared branches, Wertheim said, “clients will see signage that reflects the availability of both Schwab and TD Ameritrade’s professionals and services.”

There will also be nearly 50 stand-alone TD branches that will continue to serve TD clients.

The 70 Schwab franchise offices will continue to serve Schwab clients. And there are three more franchise offices planned by the end of 2020, Wertheim explained.

“Going forward, there will be a branch within 25 miles of approximately 90% of clients,” she said. “We are confident these are the right steps to build a strong branch network for the future.”