PNC Bank is enjoying massive substantial growth in its non-branch deposit transactions.

In its third quarter 2013 earnings report released today, PNC Bank disclosed that the bank’s out-of-branch deposit transaction volume grew 68% over last year. This growth in mobile/ATM deposits — the two are not broken out by the bank in public disclosures — happened as the bank’s branch network was substantially reduced.

PNC’s branch network appears to be contracting at a rate of about 7% per year, while non-branch deposit transactions increased to 27% of total deposit transactions, up from 16% a year ago.

In its earnings release today, the bank stated, “PNC consolidated 62 branches in the third quarter for a total of 170 branches consolidated in the first nine months of the year. Plans are to consolidate an approximate total of 200 branches in 2013. PNC had a branch network of 2,724 branches and 7,441 ATMs at September 30, 2013.”

After discussing the branch closures, PNC CEO William Demchak told investors that non-branch transaction growth is not coming at the expense of a decline in overall relationships with consumers. “Still, net checking account relationships increased by 69,000, and we grew consumer loans by $1.1 billion on a spot basis in the quarter,” he said.

This is good news to investors, as expensive branches are closed yet more customers are being added. Brett King, the industry pundit, has predicted that within the next few years, investors would begin downgrading banks with over-capacity branch networks because they represent a drag on earnings.

It is tempting to say that PNC’s mobile check deposit capability was a major driver of its non-branch deposit growth, but in the absence of more data, that cannot be stated with certainty. PNC was reportedly considering charging for mobile deposits over the summer, and has also tested opening a microbranch in the Atlanta area — both testaments to the growing importance of mobile at the expense of the branch.

Other large banks followed a similar pattern this quarter. In its recent earnings presentation, Bank of America reported a 5% contraction in its branch network in the past year, to slightly more than 5,200 branches, down from around 5,500. Over the same period, mobile users grew 27%, to 14 million from 11.1 million. JPMorgan Chase saw  its branch network grow 1%, to about 5,650 branches from nearly 5,600 last year. Chase mobile customers grew 30% in the same period.