This study explores the impact of Internet development on the reallocation of bank branches in the U.S. from 2000 to 2011. Using various regression models, we find that increased Internet penetration significantly affects the likelihood of branches being acquired, sold, or closed. Branches in areas with more advanced Internet infrastructure are more likely to be targeted for these transactions. Our findings enhance the understanding of asset reallocation within the financial sector and the broader economic effects of Internet diffusion, demonstrating its significant influence on banking operations.