Amid Dwindling Branches, Some Credit Unions Expand

While most credit unions have been paring back their branches, the Utah-based Mountain America Credit Union is among those still expanding, opening its first branch in Montana on Wednesday.

Credit unions shed 290 branches from September 2019 to September 2020. The 21,666 branches in September 2020 were down 1.3% from a year earlier, and followed a gain of 126 branches from 2017 to 2019.

However, some are expanding.

Mountain America’s opening of its Billings, Mont., branch marks its entry into its sixth state. It will be followed by another in Montana 340 miles west in Missoula this spring.

And Landmark Credit Union is continuing to expand in its Wisconsin home, adding three branches in the state this year.

The Billings branch of the Salt Lake City-based Mountain America has two drive-thru lanes, an ATM and “a spacious, modern floor plan with mural and LED walls,” according to its Jan. 19 news release.

“We’re thrilled to strengthen our branch network as we add the sixth state to our geographic footprint,” Jason Rogers, SVP and chief member service officer, said. “Growing into Montana will allow us to serve more communities and small businesses while helping more members define and achieve their financial dreams.”

In September 2020, NCUA records showed Mountain America had 73 of its 99 branches in Utah. It also had seven in Arizona, 13 in Idaho, two in New Mexico and four in Nevada.

The credit union has not only been growing fast, but its returns on assets in 2020 were extraordinary for any year, especially for a year when many areas were hard hit by the pandemic recession.

Mountain America’s ROA for the three months ending Dec. 31 was 1.68%, up 44 basis points from 2019’s fourth quarter, and for the year ROA rose 17 bps to 1.48%, according to its fourth-quarter Call Report released last week.

The returns weren’t aided by light provisioning. Its loan loss allowance at year’s end was slightly more than its net charge-offs for the previous two years.

It ended the year with assets of $12 billion, up 28.2% from a year earlier, as members rose 8.7% to 956,185.

Landmark Credit Union ended 2020 with $5.2 billion in assets, 367,116 members and 35 branches, all in Wisconsin.

In early January, Landmark opened a branch in Glendale, Wis., and it is building a branch in Mequon to open this summer and one in Waukesha to open in the fall.

In early January, Landmark opened a branch in Glendale, Wis., and it is building a branch in Mequon to open this summer and one in Waukesha to open in the fall. The Mequon branch will be its second in Ozaukee County. The existing branch is nine miles north in Grafton. It also has an existing branch in Waukesha.

On top of that, the credit union’s new headquarters is scheduled for completion this spring in Brookfield, about six miles north of its existing headquarters in New Berlin and 12 miles west of Milwaukee.

Brian Melter, Landmark’s Chief Experience Officer, said the new branches are smaller, ranging from 3,000 to 3,800 square feet, compared with branches built in the past that were 4,500 to 5,000 square feet.

Each new branch will result in Landmark adding eight to 12 employees. The new branches open more opportunities for its existing 800 employees to advance, which improves morale and retention.

About 300 employees were based at its headquarters before the pandemic, at the time Landmark broke ground for a new headquarters. Changes were made to the design to upgrade the HVAC system to improve air quality and circulation.

Other changes were important, but cost relatively little. For example, 18 inches of glass were added above the cubicle partitions.

Landmark is still admitting members inside its branches in limited numbers by appointment. Next month it will be rolling out technology in all branches for members to get in a virtual line while staying warm in their cars.

“We did not want to have people waiting outside in the cold Wisconsin weather,” he said.

When members arrive at a branch, they will pass a sign that has instructions to scan a QR code, which sends a text code to add their name to the cue. For those not able to navigate that technology, an employee will run out to the member’s car to give them a “hockey puck” device that vibrates and lights when it’s their turn to walk into the building.