Brick & mortar fuels bank branch surge

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As of June 2009, Maryland had 1,843 bank branches, of which 1,546 were commercial banks and 297 were savings institutions. None were branches of foreign banks.

The number of bank branches in Maryland has increased by 10 percent over the past seven years, said Kathleen Murphy, president and CEO of the Maryland Bankers Association. “It’s gone counter to what you would think, with the use of technology.”

Though there are more bank offices in Maryland, fewer banking companies are headquartered here, she noted. There were 95 banks headquartered in the state in 2008, and there are 90 today, a trend that is mirrored nationally as companies consolidate, she said.

But banks such as Old Line Bank in Bowie have been adding branches.  The company has gone from four offices in 2006 to 10 today, part of a strategy that included its move from Bowie to Waldorf, said CEO Jim Cornelsen. “We believe you need some brick and mortar to be the total bank,” he said.

Even though many banking customers conduct the bulk of their business online, banks see value in having brick-and-mortar establishments that allow bankers to meet face-to-face with customers. Also, the buildings themselves serve as advertisements for the bank, said Murphy.

Hamilton Federal, which now has five branches, acquired a Pasadena location from K Bank in December.  “It’s about relationships, seeing customers,” said CEO and President Robert DeAlmedia. “Most people don’t like to come in often, but they like to know they can if they want to.”

The State Employees Credit Union of Maryland, or SECU, one of the largest state-chartered financial cooperatives in Maryland, opened a branch in Bel Air in February, bringing its number of branches to 19. SECU opens one or two branches a year, a strategy that has not been slowed by the economy, said Rod Staatz, president and CEO.  Members, he said, “like a place to go to, if they need to.”

Said Murphy: “People want to do their banking how they want to do it and when they want to do it. Some people prefer online banking and never walk into a branch, but other people like to talk to people.”