The COVID-19 pandemic forced credit unions to rethink the function of branches, but recent data shows that they continue to open more locations — even as banks do the opposite.
U.S. credit unions opened 66 branches and closed 51 in the second quarter, pushing the industry's total branch count to 19,974, according to the latest data from S&P Global Market Intelligence. By comparison, in 2021 credit unions opened 86 branches in the second quarter while closing 62.
Oregon saw four net branch openings in the second quarter of this year, the most for any state, followed by Texas and Wisconsin with three net openings each. In contrast, Georgia had the most net closures, at five, according to S&P Global.
At the same time, U.S. banks
The $4 billion-asset Truliant Federal Credit Union in Winston-Salem, North Carolina, has 34 branches, and No. 35 is on the way. Truliant will open a new branch in Greenville, South Carolina, in the fourth quarter, said Chris Murray, Truliant's chief member experience officer.
Branches remain important to the company's delivery strategy and are important when entering new markets, Murray said. The credit union continued to see high volumes of traffic throughout the pandemic, he said.
"While the pandemic shook up the branch model, forcing us to adapt how they were used, they also introduced many members to new concepts like online appointment scheduling," Murray said. "And for many members, a branch is still the only way they bank."
Glenn Grau, senior vice president of sales for the Pittsburgh-based branch design firm PWCampbell, said the pandemic is still impacting branch planning for credit unions today by forcing them to continue to evaluate what the right layout and function is to serve members' changing needs.
Members who were not previously using mobile platforms had to use them for routine transactions during the pandemic, Grau said. Now, members are coming into the branch for different reasons including to deal with problems or for education, and credit unions need to adapt, Grau said.
Space Coast Credit Union in Melbourne, Florida, was among a few credit unions that added multiple branches during the second quarter, according to S&P. And the $7.3 billion-asset credit union earlier this month announced the groundbreaking for its 66th branch, which is planned for Viera, Florida.
It will be the second Space Coast branch in Viera and the third within four miles of the credit union's corporate headquarters. "Space Coast Credit Union is dedicated to growing with and investing in the communities we serve," its president and CEO, Timothy Antonition, said in a press release.
Some credit unions that adopted a heavier digital presence during the pandemic found that a static branch count was more desirable than an expansion.
The $2.9 billion-asset Trumark Financial Credit Union in Fort Washington, Pennsylvania, has 24 branches and no more currently on the drawing board. "We feel very confident that we're rightsized in our markets," President and CEO Kelly Botti said.
Trumark Financial opened its two newest branches in 2019 and was already shifting to a heavier reliance on digital even before the pandemic.
Botti said foot traffic in the branches had not declined noticeably since the pandemic, although the reasons members use the branches is changing. "They come to us for advice," she said. "Relationships are our business."
Another area where the pandemic had an impact was with "in-school" micro branches in high schools and colleges. Many credit unions use them to offer financial education to students while cementing their presence in the community.
But as face-to-face interactions were minimized during the pandemic, credit unions began looking for other ways to keep those programs alive.
Botti said three student-focused Trumark Financial branches in the West Chester Area School District and one in Bucks County Community College all closed during the pandemic and will not reopen. She could not comment on the decisions because they were made by the schools.
Trumark has a few student-run branches still open in other schools, and Botti says they are important to engaging early with students and to drive good financial habits. Branches also often lead to long-term relationships between the students and the credit union, she said.
Michele Moore, senior vice president of member services for SECU in Linthicum, Maryland, said the $5.1 billion-asset credit union has one location at Towson University.
During the pandemic, SECU's presence at schools was minimal, with most communications occurring on Zoom or Webex.
"We need to make sure our students develop a positive relationship with money early," Moore said. "At SECU, we do this by being visible in schools to help students along the way in the classroom, offering scholarships, and educating them on short and long term goals of money."
