The Next Branch? Maybe Not the Best Idea!

by Tom Glatt JrLeave a comment
Lightbulb representing ideas
We recently saw a press release from a mid-sized credit union touting the launch of its latest new branch. You would think that a credit union highlighting yet another branch (they have a few) would be doing so after generating amazing results with the ones it already had. Well … not the case.
The chart below highlights the credit union’s HealthScore trends over the last few years. Keep in mind our HealthScore scale is 0-10 with 10 being high performing – and the industry average is 5.862.


And how about the table of results highlighting their component scores below? Low scores for earnings, operating expenses, and efficiency … and also for growth. High scores for some relationship metrics, but also an indication of concentration risk. This is probably not the best time to expand the branch network. Rather, this credit union should be working on cost reduction strategies along with strategies to drive deeper member relationships. All they did with this latest decision was add cost on top of cost. A rather risky proposition.

HealthScore Trend Table

Visit https://www.glattconsulting.com/healthscore/healthscore-trends to see additional details regarding score acronyms and trends.

Cycle_Date HS NW SE RA OE EF DL CO TX CS RS LA DM LM BM AG LG MG
03/31/2004 4.4706 7.5 7 3.5 2 6 3 1 9 6 3.5 4.5 4 4.5 6 8.5 0 0
06/30/2004 4.0882 7.5 7 3 2 6 2.5 1 9 6 4 5.5 4 4.5 6.5 0 1 0
09/30/2004 4.4412 7.5 7 4.5 2 6.5 2 1.5 8.5 5.5 4 5.5 4 4.5 6.5 1.5 4.5 0
12/31/2004 4.4412 8.5 7.5 5.5 1.5 7 2 1.5 8.5 2.5 4 6 4 5 7 0 5 0
03/31/2005 5.5588 8 7 8 1.5 8.5 2 1 9 7 4 5.5 4 4.5 6.5 9.5 0 8.5
06/30/2005 5.0294 8.5 7.5 8.5 1.5 8.5 2 1 8.5 5 4 6 4 4.5 6.5 4 0 5.5
09/30/2005 4.9706 9 8 8.5 1.5 8.5 2 1 9 6 4 6 4 4.5 6.5 2.5 0 3.5
12/31/2005 4.5588 9 8 8.5 1 8.5 2.5 1 9 2.5 4 6.5 4 5 5.5 0 2.5 0
03/31/2006 5.6765 9 7.5 5.5 1 6.5 3.5 1 9 4 4 6.5 4 5.5 5.5 10 10 4
06/30/2006 5.4706 9 7.5 6 1 7 3.5 1 9 1.5 4 7 4 5.5 5.5 6.5 10 5
09/30/2006 5.0882 9.5 8.5 6 0 7 4 1 9 1 3.5 7.5 3.5 6 5.5 1 9.5 4
12/31/2006 5.3529 9 8 6.5 1 7 3 1.5 9 3 3 7 4 5.5 5 6 7.5 5
03/31/2007 4.9706 9 8 5 1 6.5 3.5 1.5 9 4 3 6.5 4 5.5 5 4.5 0 8.5
06/30/2007 4.9412 9.5 8.5 2.5 7 6 3 1.5 9 4 3 7 4 5.5 4.5 0 2 7
09/30/2007 4.5294 9.5 8.5 5 1 6 2.5 1.5 9 3.5 3 7.5 3.5 5.5 5 0 2.5 3.5
12/31/2007 4.5 10 9 6 1 6.5 1.5 1 8.5 3 3 8 3.5 6 5 0 4.5 0
03/31/2008 5.1176 10 9 9 1 6.5 2 1.5 9 4.5 3 7.5 4 6 5 9 0 0
06/30/2008 4.8235 10 9 8 1 6.5 1.5 1.5 8.5 3.5 3 7.5 4 6 5 7 0 0
09/30/2008 4.6765 10 9.5 8 0 7 1 1.5 8.5 3 3 7.5 3.5 6 5 2.5 0 3.5
12/31/2008 4.5 10 10 7 1 7 1 1 8 3.5 3 7.5 4 6 5 2.5 0 0
03/31/2009 4.7353 9.5 9 5.5 1.5 8.5 0 1 7.5 4.5 2.5 6.5 4 6 4.5 10 0 0
06/30/2009 4.3824 9.5 9.5 0 0 8.5 0 0 7.5 6 2.5 6.5 4.5 6 4.5 9.5 0 0
09/30/2009 4.8235 10 9.5 9 1 9.5 0 0 7.5 5 2.5 6.5 4.5 6 4.5 6.5 0 0
12/31/2009 4.6471 9.5 9 6 1.5 9.5 0 0 7.5 5.5 2.5 6.5 4.5 6 4.5 6.5 0 0
03/31/2010 4.5294 9 9 2.5 1.5 8.5 0 0 7.5 4.5 2.5 6 4.5 5.5 4 8 0 4
06/30/2010 4.0294 8 8 0 1.5 9 0 0 7.5 2.5 2.5 5.5 5 5.5 4 8 0 1.5
09/30/2010 4.0294 8 8 0 1.5 9 0 0 8 2.5 2 5 5 5 4 6 0 4.5
12/31/2010 4 8 8 0 1.5 8 0 0 8 4.5 2 5 5 5 4 5.5 0 3.5
03/31/2011 3.6765 8 8 1 1.5 7 1 0 8.5 2.5 2 4.5 5 5 4 4.5 0 0
06/30/2011 3.5882 8 8 3 1.5 7 1.5 0 8.5 1.5 2.5 4 5 4.5 3.5 2.5 0 0
09/30/2011 3.7353 8 8 1.5 1.5 6.5 1.5 0 9 3.5 2.5 4 5.5 4.5 3.5 4 0 0
12/31/2011 3.9118 8 8 3 1.5 6.5 1.5 0 8.5 5 2 4 5.5 4.5 4 4.5 0 0
03/31/2012 4.8529 7.5 7.5 4.5 2 4 1.5 1.5 9 5 2 4 6 5 4 9.5 9.5 0
06/30/2012 4.5588 7.5 7.5 5 1.5 3.5 1.5 1.5 9 4.5 2 4 6 5 4 7 8 0
09/30/2012 4.4118 8 8 6 2 4 2 1.5 9 4 2 4 6 5 4 5.5 4 0
12/31/2012 4.1765 8 8 6 1.5 4 1.5 1 9 4 2 4 6 5.5 4.5 3 3 0
03/31/2013 3.8235 8 7.5 0 1.5 0 1.5 1.5 8.5 6 2 3.5 7 5.5 4 8.5 0 0
06/30/2013 3.4412 8 7 1.5 1 1 1.5 1.5 9 3.5 2.5 3.5 6.5 5.5 4 2.5 0 0
09/30/2013 3.2941 8 7.5 1 1 1 1.5 1.5 8.5 1 2.5 4 6.5 5.5 4.5 1 1 0
12/31/2013 3.3529 8.5 7 1 1 1.5 1 1.5 8.5 0 2.5 4.5 6.5 6 4.5 0 3 0
03/31/2014 4.0882 8 7 0 1.5 2 2.5 1 9 1.5 2.5 4.5 6.5 6 4.5 8 0 5
06/30/2014 4.1471 8 7.5 0 1.5 2 2.5 1 9 1.5 2.5 4.5 6.5 6 4.5 5 2 6.5
09/30/2014 3.7941 8 7.5 0 1.5 3 2.5 1.5 9 1.5 2.5 4.5 6.5 6 4.5 1 2.5 2.5
12/31/2014 3.9118 8.5 7.5 0 1.5 3 3 1.5 9 1 2.5 5.5 6 6.5 4.5 0 6.5 0
03/31/2015 4.0882 8 7.5 0 1.5 3.5 3 1 9 2.5 2.5 5 6.5 6.5 4.5 8.5 0 0
06/30/2015 4.0588 8 7.5 0 1.5 4.5 4 1 9 2.5 2.5 5.5 6.5 6.5 4.5 2 3.5 0
09/30/2015 4.0882 8.5 8 0 1.5 4 3 1.5 9 3 2.5 6 6.5 6.5 4.5 1 4 0
12/31/2015 4.0294 8.5 7.5 0 1.5 4 3 1.5 9 3 2.5 6 6.5 7 4.5 1 3 0
03/31/2016 4.2941 8 7.5 1.5 2 3.5 2.5 2 9 4 2.5 5.5 7 7 4.5 6.5 0 0
06/30/2016 4.1765 8 8 1.5 2 3.5 2.5 2 9 4 2.5 5.5 7 7 4.5 4 0 0
09/30/2016 4.2059 8 8 1.5 2 3 4 2 9 4 2.5 5.5 7.5 7 5 2.5 0 0
12/31/2016 4.0294 8.5 7.5 1 2 3 4 2 9 3.5 2.5 5.5 7.5 7.5 5 0 0 0
03/31/2017 4.2647 8.5 7.5 0 2 2.5 4 2 9 3.5 2.5 5.5 8 7.5 5 3.5 1.5 0
06/30/2017 4.2353 8.5 7.5 1 2 2.5 3.5 2 9 4 2.5 5.5 8 7.5 5 1.5 2 0
09/30/2017 4.2941 8.5 8 1 2 2.5 4.5 2 9.5 4 2.5 6 7.5 7.5 5 0 2.5 0
12/31/2017 4.2059 8.5 7.5 1 1.5 3 4 2 9 4 2.5 6 8 7.5 5 0 2 0
03/31/2018 4.9118 8.5 7.5 0 1.5 4 4 2 9 3.5 2.5 6 7.5 7.5 4.5 0 5.5 10
06/30/2018 4.4412 8.5 7.5 1.5 1.5 4 5 2 9 4 3 6 8 8 5 0 2.5 0
09/30/2018 4.3235 9 8 1.5 1.5 4 5 2 9 4 3 6 7.5 8 5 0 0 0
12/31/2018 4.2647 9 8 1 1.5 3.5 4.5 2 9 4 3 6 8 8 5 0 0 0

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