Bank of Commerce is replacing its branch in Shelley with the first new branch the Ammon bank has built since it opened a Pocatello branch in 2009.
The existing 3,030-square-foot Shelley branch was built in 1976 and was the fourth branch opened by Bank of Commerce, which was established in 1959. Bank of Commerce reconstructed its Idaho Falls branch in 2015.
The old branch will be demolished, and a new 3,486-square-foot branch will be built on a neighboring lot. Construction is expected to start around the start of July with ambitions for a December opening, said Ron Johnson, the bank’s executive vice president and chief financial officer.
“We’re trying to improve the look and feel of the branch and modernize the facilities for today’s banking needs,” Johnson said.
Some banks are holding back from building new branches as customers turn to online banking. The American Bankers Association in 2016 found that 55 percent of bank customers use the Internet most often to manage their accounts. Only 14 percent primarily use bank branches. But banking preferences vary from market to market, said Mike Townsend, ABA’s public relations director.
“Many people use a mix of channels to do their banking, and branches remain popular with customers who prefer sitting down with someone to open an account, apply for a home or business loan, or simply make a deposit,” Townsend said.
In Shelley and across Bank of Commerce’s eastern Idaho territory, people still like to go to the bank. Johnson said only one-third of its customers do Internet banking.
“Our customer base is primarily rural-based,” Johnson said. “We have over 11,000 Internet banking customers out of 36,000 customers. Providing branch access is our No. 1 priority.”
Bank of Commerce remodels or upgrades at least two branches each year, Johnson said.
Bank of Commerce has 16 branches in eastern Idaho with one in Montana. The bank has $1.1 billion in assets.
NBW Architects of Idaho Falls is the architect. Bateman-Hall of Idaho Falls is the general contractor.