The lender said it would let the Stockland Jesmond branch will stay shut until its lease expires at the end of May. It will not be renewed.

The Marketown branch in Newcastle West, which remains open, is also slated to shift to the former David Jones site in the city's east as part of redevelopment later this year.

Greater Bank chief executive Scott Morgan said customer behaviour, nearby other branches, costs and lease lengths were among the factors that led to the decision.

"Providing customers with over-the-counter banking through our branch network remains very important for Greater Bank. However, the reality is that a growing number of our customers are moving to mobile and online facilities to transact with us," Mr Morgan said.

"Transactions at the Jesmond branch in particular have dropped by 25 per cent over the last three years. Taking this, along with a number of other factors including current lease arrangements into account, we have made the decision not to extend out lease on the site."

Jesmond staff, who were deployed to other parts of the business, have been notified and will continue to work in other areas.

Mr Morgan said customers would also be offered alternative options but noted many "have already chosen to conduct their over-the-counter banking at one of our nearby branches".

Greater Bank branches are also expected to return to normal soon as the coronavirus response gains traction.

"We will review the restricted branch hours at the end of May, and subject to government and health authority guidance, we are planning to resume normal operating hours sometime in June," Mr Morgan said.

"As part of this, we will reopen the remaining five branches that have been temporarily closed during this time; Maitland, Mayfield, Nelson Bay, New Lambton and Warners Bay."

The Greater changes follow Newcastle Permanent closing several storefronts in March.