Monday, February 13, 2012

Out-of-State Branches

While credit unions have the image of being local financial institutions, many credit union operate regional branch networks. And in few cases, a credit union's branch network is almost national.

According to information from Highline FI, 347 credit union in 2011 operate branches in more than one state. Navy FCU has the most out-of-state branches with 142.

Texas and Virginia have the most out-of-state (foreign) credit unions operating in their states with 44 and 32 credit unions, respectively. (see image below)

California reported the most branches owned by credit unions headquartered in another state with 100.

Washington, D.C., Nevada, and Arkansas have the highest percentage of branches in their states owned by foreign credit unions. In Washington, D.C., 43.65% of the branches are owned by out-of-state credit unions; 26.67% of Nevada branches and 19.53% of Arkansas branches are foreigh owned.

Other states with at least 10 percent of their branches belonging to out-of-state credit unions are New Hampshire, Mississippi, Georgia, Kansas, Kentucky, New Jersey, Virginia, and Colorado. (see image below)


  1. Well, it appears in order for credit unions to serve people of modest means sometimes they must go regional or national. Maybe they could not find people of modest means in there home state. So they look at Texas and Virginia and bingo you have a population of modest means people. The unintended consequences is the fact these credit unions are huge asset rich. They look like a national bank except they are tax exempt.

  2. Perhaps a company has locations in multiple states thus the CU must have locations there to serve their members. Think of manufacturers that have plants in different states. The members of the CU at those locations deserve service thus the CU would need a location there.

    Besides, there was never a prohibition on national branching for federal credit unions. Unlike banks which bribed, sorry lobbied, Congress for the privilege without any additional tax burdens.



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