Numerica Credit Union, of Spokane, has bought a location in the Tri-Cities to build a new branch and enter the market there, continuing a trend of geographic expansion by leading Spokane credit unions.


Earlier this year, Numerica Credit Union established a strong presence in the Wenatchee, Wash., market through a merger with a credit union there.


What were trying to do is provide more service to more people, says Dennis Cutter, president and CEO of Numerica. We think this is going to be a great new venture for us.


Meanwhile, Global Credit Union opened two branches in the Tri-Cities last summer to enter that market. It now is considering launching commercial-lending operations in the Puget Sound area and opening branches elsewhere in Washington, Idaho, and possibly Montana.


A change a couple of years ago in the rules that govern credit unions has allowed the institutions to grow into a broader geographic area than they could previously, Cutter says.


It has taken some credit unions a couple of years to ramp up for geographic growth, but institutions now are entering new markets, he says.


Numerica is opting to enter markets where the population is growing at a brisk clip.


The Spokane credit union, originally founded to serve railroad employees and their families, has bought land in Kennewick to build its first branch in the Tri-Cities. Its currently designing its new branch, and Cutter says he hopes construction will start in February, and the new location will open as soon as next July.


Because it will be Numericas only branch there, Cutter says the building likely will be somewhat larger, at 5,000 square feet of floor space, than a typical Numerica branch. Cutter says he doesnt have a cost estimate to release on the project yet.


The Tri-Cities will be the second new market in which Numerica will gain a foothold. The credit union absorbed North Central Credit Union, a Wenatchee-based organization with three branch offices in that Central Washington market, in September. Those three Wenatchee-area branches now operate as North Central Credit Union, a Division of Numerica Credit Union.


The merger brought 8,000 members and $40 million in assets to Numerica, giving it about $445 million in total assets and total of 51,000 members at 10 branches. Numericas other branches all are located in the SpokaneCoeur dAlene area.


Global Credit Union opened its two Tri-Cities branchesone in Kennewick and one in Pascoinside new Yokes Fresh Market supermarkets.


For years, Global has operated branches on military installations in Europeit currently has three branches in Italyand in North Idaho, but the branches in Tri-Cities mark its first venture in Washington state outside of the Spokane area.


John Madri, Globals retiring president and CEO, says that the institution, once called Fairchild Federal Credit Union, might open branches elsewhere in Washington and in nearby states in the future.


Most immediately, however, Global plans to try to expand its commercial banking business with commercial real estate loan centers in the Puget Sound area.


Here, Global is remodeling a building at Riverside and Post in downtown Spokane and plans soon to open its first commercial real estate loan center there.


Global has offered commercial real estate loans for years, but plans to roll out a full suite of business-banking services that it didnt previously offer once the new downtown center opens.


Those services include U.S. Small Business Administration loansthe federal agency approved Global as an SBA lender earlier this yearas well as secured and unsecured lines of credit, equipment financing, business checking accounts, and business credit-card services.


In the Puget Sound market, Madri says, Global believes it can target the same market it focuses on here.


We go after a particular area that banks dont like to play inthats loans of between $500,000 and $5 million, he contends.


The credit union, however, hasnt set a schedule yet for entering the West Side market.


Not all large credit unions are looking to go that far from home.


STCU stays at home


Spokane Teachers Credit Union President and CEO Steve Dahlstrom says that big credit unions philosophy is to open branches in areas where its current members live, rather than trying to generate new membership by opening new branches.


The credit union, which is Spokanes largest, defines its market as being within a 100-mile radius of Spokaneits farthest-outlying branch is in Newport, Wash., 50 miles north of Spokane.


You have to know your market, and we know this area, Dahlstrom says. If I focus resources in one place, I can be competitive. If I spread it out all over the state, thats going to be hard to do.


Cutter says there are challenges in training employees and overseeing branches elsewhere.


Anytime youre away from your market, there are challenges, Cutter says. But there are way more opportunities than there are challenges.


Horizon Credit Union, Spokanes fourth-largest credit union in terms of total local deposits, is taking a step to grow here. The institution has agreed to merge into its operations Mountain View Credit Union (see related story, A21). That merger has received regulatory approval and is scheduled to be completed Jan. 31.


The merger will boost Horizons membership base by about 5,000 people and will increase its total assets by about 10 percent.


Mountain View, incidentally, is well-versed in mergers. The credit union is an end product of the merger of URM Credit Union and Grocers Federal Credit Union in 2000. During the following year, Rosauers Employees Federal Credit Union and Lilac City Federal Credit Union also merged into Mountain View.


Also, a handful of Spokane-area credit unions are involved in a shared branch network through which a member of one credit union can complete a transaction at the branch of another network, and they point to that as a vehicle for growth.


Members of that network include Teachers, Numerica, Global, Spokane Federal Credit Union, Washington State Employees Credit Union, and Telco Credit Union.


Dahlstrom says that with shared branching and a credit union ATM network similar to those many banks belong to, credit unions are adding convenience for their members.


If we can improve service at all credit unions, it benefits our members, he says.