By Ray Birch
DETROIT— Credit unions may need to pay closer attention to a simple but increasingly important signal coming from the banking side: even as the industry keeps closing branches overall, some of the nation’s biggest banks are still spending heavily to build, optimize and selectively acquire physical locations—underscoring, in the view of veteran attorney Michael Bell, that branches still matter more than many in the CU space may want to admit.
Bell, partner and chair of the Financial Institutions Practice Group at Honigman, LLP, said he does not see the trend as a threat so much as a warning shot—and a call for credit unions to be more deliberate about their own footprint strategy.
“I don’t view it as a threat to credit unions, but I view it as a reminder or for some a wake-up call that branches do matter,” Bell said. “If you’re failing to watch what some of the better bigger banks in our country are doing and why they’re doing it, you’re missing the boat.”
That view was reinforced by a recent American Banker report that highlighted how several large banks are still investing in branches even amid AI hype and continued fintech encroachment. Citing Bancography’s 2026 report, American Banker said the industry saw a net decline of about 400 branches last year—a slowdown from the 2021-2022 period, when more than 5,000 branches closed—but also noted the largest banks are focusing on making remaining locations more convenient and productive.
American Banker reported JPMorganChase, which already has more than 5,000 U.S. branches, is still executing on plans announced in 2024 to build more than 500 new branches by 2027, after posting a net increase of 116 branches last year, while PNC said it is investing $2 billion to add 300 new branches by 2030 and Bank of America has said it planned to open 165 locations by the end of this year. The publication also cited Bancography data estimating a new freestanding branch costs roughly $3.5 million and can take about four years to break even.
The Key Point
For Bell, the bigger takeaway for credit unions is that the strongest institutions are not choosing between digital and branches—they are pursuing both organic and non-organic growth at the same time. He said the strong growth-oriented credit unions he works with maintain an active, constantly reviewed organic branching strategy, while also staying alert for acquisitions, branch purchases and merger opportunities.
“The best performing credit unions absolutely have a well-maintained and monitored organic branching strategy,” Bell said. “They’re continuing to branch in new spots, optimize where their branches are… and they are aggressive.”
At the same time, he added, “the more dynamic folks are growing both ways, not one or the other.”
Bell, the pioneer of CU purchases of banks, has advised on more than 75 whole-bank transactions and numerous branch purchases, said branch acquisitions in particular may be a bigger opportunity than some credit unions realize. He said that pricing today is “right down the middle”—not high, but not distressed either—which could keep more sellers in the market while still allowing buyers to find attractive expansion opportunities.
Those deals often include not just the real estate, but deposits and loans as well, making them “really powerful transactions” both mathematically and as a member-growth tool.
Michael Bell
“I think it’s a growing opportunity,” Bell said. “The mistake is not considering these, not looking at these, not being aware that these are out there.”
Due Diligence Remains Critical
He said the backdrop is especially relevant as midsize and smaller regional banks continue facing pressure to improve efficiency, rationalize branch networks and right-size their franchises—conditions that can create more branch-sale opportunities for credit unions willing to move.
Bell stressed that due diligence remains critical in evaluating assets and liabilities, but said the larger strategic error may be ignoring the category altogether. In his view, too many in the CU industry still assume banking is only about branch closures, when in reality the best-capitalized banks are selectively expanding and repositioning where it counts.
“People think banks are closing branches and they’re not opening new ones,” Bell said. “But if you look close, they’re opening branches—and that should be a bit of a wake-up call to our industry.”