Deposit Growth In CUs, Small Banks Double Big Banks’
U.S. credit unions and small community banks saw their deposit growth in the past four years nearly double that of large U.S. banks, according to an annual outlook report issued this month by Bancography, a strategic branch planning firm.
Also, branch closures and consolidations may create opportunities for credit unions, the report indicated.
Credit unions saw deposit growth of 16.3% during the past four years, compared with 16.9% for community banks, 8.1% for super regional banks (operating in 10-plus states), 7.6% for national banks, 5.7% for super community banks (serving one to three states), and 5.5% for regional banks (operating in four to nine mostly contiguous states within a single U.S. region), Bancography said.
Credit unions' deposit growth between 2011 and 2012 was 3.8%, compared with national banks' 3.9%; community banks, 2.7%; super-regional banks, 1.7%; super community banks, 1.2%; and regional banks, -0.8%, the report indicated.
In the report's summary, "Advice for the Year Ahead," Bancography noted a good opportunity for credit unions.
"In long-established markets, branch closures and consolidations may create opportunities for community banks and credit unions to purchase or lease sites at favorable terms," said the report. "But in less-concentrated markets, market leaders continue to add branches, and the costs of keeping pace may prove prohibitive.
"In such markets, smaller institutions may be better served pursuing only specific corridors rather than marketwide branching, or focusing on specific non-retail lines of business such as wealth management or business banking," Bancography added.