Ginger Wehner, president of KU Credit Union, accepts an Excellence in Commerce award from the Lawrence Chamber of Commerce in October 2006. The bank was honored for opening a second Lawrence location, part of a recent trend of bank expansions in the area.

If there weren’t enough options and locations for customers to do their banking in Lawrence, one new credit union location is open, and a new bank facility is on the way.

In October, KU Credit Union celebrated the opening of its second Lawrence location, at 2221 W. 31st St.

Peoples Bank will break ground on a new facility at 31st and Iowa streets sometime in the next few weeks.

Jason Novotny, market store manager for Ottawa-based Peoples Bank, said covering more of Lawrence is at the heart of the bank’s decision to add another location.

“It gives us another commitment to the Lawrence community and gives us another convenient location for our guests as another facility,” he said.

For some banks, especially larger bank chains, Novotny said outlying locations don’t even sustain themselves and exist mostly to provide another nearby outlet for people to do their banking.

Most bank locations, he said, need $22 million in deposits to sustain their needs.

“They’re not cheap to operate,” Novotny said. “You see some banks that have locations all over. They can take losses at their other facilities.”

Even for a nonprofit financial institution like KU Credit Union, a new location means partly a matter of convenience for customers.

“We’ve got so many members located south of town and it’s a prime shopping center, so we needed to take a look at providing services in that area,” said Ginger Wehner, KUCU president.

The credit union, which is affiliated with the Federal Credit Union, started in 1963 with one location, and has now expanded into a new location because of an increase in members.

More members in recent years has meant lower interest rates as profits go toward either defraying interest rates or capital improvements.

So what’s driving the new push for new banks in town?

Wehner said much of it is simply tied to growth in the Lawrence community.

Much of the growth is in south Lawrence, which is why it makes sense for new banks to sprout up there.

“I think Lawrence is a wonderful place to live,” Wehner said. “The school districts are great to raise your family; the economy is good.”

Nevertheless, one doesn’t have to walk long and far to find a bank in Lawrence.

Do local bankers worry that Lawrence could have too many financial institutions?

That prospect doesn’t appear to bother Wehner, who said more banks means more competition among them.

“Competition is good,” she said. “It continues to keep out products in line as far as our pricing, it makes it in the best interests of the consumer.”

She added that the KUCU is looking into the possibility of expanding with another location in the next year or two.