Branch operations and their relationship to the future of banking are a growing concern among financial services providers. Given the expense of operating a physical location coupled with the growing preference of consumers to conduct routine transactions digitally and more sophisticated engagements in person, those concerns are not totally unwarranted.
Nationwide, the industry lost 679 brick-and-mortar branches year-over-year, according to annual branch data released by the FDIC and the NCUA in early October. That’s a decrease of 3.7%.
The total credit union branch count increased in only five states: North Dakota, Michigan, Connecticut, Georgia and Nevada. Texas lost 98 credit union branches in the past year yet still reported the highest number overall 1,415 as of June 30, 2018.
And despite losing branches, total credit union membership and deposits are both up 4.3% and 5.4%, respectively year-over-year.
The graph below provides two types of information: the first, credit union branch counts at the state level. Hover over a state to see the total branch count as of June 30, 2018, versus one year ago. Click on a state to see the top five credit unions in average deposits per branch. The second map shows credit union deposit market share. Click on a state to see the credit union with the highest deposit market share in that state.
Credit union deposit market share as of June 30, 2018, was 9.1%. That’s an increase of 5 basis points from this time last year. Banks and other financial institutions account for the remaining 90.9% of the market.
Credit unions in Alaska attracted 31.4% of all deposits in the state. It was the only state where credit unions broke into 30% deposit market share.
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In the continental Northwest, Idaho, Oregon, and Washington all surpassed 20.0% deposit market share, recording 27.9%, 23.3%, and 24.2%, respectively, at midyear. Other states to break this threshold include New Mexico (24.7%), Vermont (20.3%), and the District of Columbia (22.5%).
Credit union members have deposited more than $1.2 trillion in their cooperatives. That’s an annual increase of 5.4% in total deposits. Significant as this growth is, it is a deceleration from second quarter 2017, when deposit growth at credit unions was 8.1%.