Sound Credit Union Plans Larger Branch in Key Center

We’re really looking forward to having the room we need to function well”

Sound Credit Union is preparing for a major expansion in Key Center, with plans to build a larger, more modern branch next to its current location. Branch Manager Marie Smurthwaite shared early details at the November meeting of the Key Peninsula Business Association, describing a project driven by space constraints, accessibility needs, and the steady growth of the local membership.

The new branch will sit on property the credit union acquired in 2001, roughly where the former Blend Wine Shop building now stands, with a footprint significantly larger than the existing Key Center location just 70 feet away.

Built in 1981, the cinderblock building was originally a gun store called Northwest Firearms, then Red Dogs bakery, deli, and grocery (home to deep-fried donuts and the KP’s only arcade video game), and later Nimrick’s FurnishingsOld & New, where one could find local treasures on consignment or salvaged from storage sales, until it closed in 2010 and Blend moved in.

The building has been vacant since Blend closed in October 2021 and will be torn down. Although the designs are complete, Sound Credit Union won’t release renderings until it has finished the permitting process.

“We’re really looking forward to having the room we need to function well,” Smurthwaite said. “This new site lets us do that.”

Parking has been one of the biggest challenges at the current branch, which regularly sees some of the highest transaction volume among SCU’s 26 locations. Despite its small size, the Key Center branch consistently ranks among the top three in terms of transactions and maintains a high volume of business accounts.

According to Smurthwaite, plans include a drive-through lane and a true drive-up ATM, an upgrade from the walk-up model that requires customers to park and approach the building. They also include expanded private offices for financial advisors, real estate lending, and consumer loan consultations; dedicated spaces for card-dispute assistance and account openings; and increased security through improved lighting and more comprehensive camera coverage of outdoor areas and the parking lot.

The credit union also plans to significantly expand its safe deposit box inventory, which currently has long waitlists for all sizes. “We’ve kept that list for years,” said Smurthwaite. “We know how many people in this community need those boxes.”

Visitors will enter the new building through a secure atrium, designed to enhance safety and enable staff to secure specific areas of the building if necessary. The vehicle circulation pattern will create a small loop behind the branch, connecting the drive-through, ATM, and main parking area, while preserving access to neighboring properties through existing easements.

Permitting is underway, with approvals hoped for in early 2026. If that timeline holds, construction could begin sometime next year and take roughly a year to build, according to Smurthwaite. 

She mentioned it isn’t yet known what will happen to the existing branch building once the new one opens. Whether the land and building will be leased, rented, or sold is still undecided and may depend on broader economic factors.

The Key Center expansion is part of a larger period of growth for Sound Credit Union. The cooperative recently purchased land in Port Orchard for a future smaller branch and has completed several acquisitions in recent years, including Washington Business Bank in Olympia and the Bank of Washington in the Everett area. Leadership is also exploring potential mergers with smaller credit unions seeking financial stability.

Yet while the credit union sees growth, two KP businesses are quietly leaving. SCU’s neighbor, Serve Nutrition, closed its doors Dec. 6 after just two years in Key Center. Calling themselves the “KP’s healthy hangout,” the protein shake shop owners, Blake and Elli Lechner, said they wanted to spend more time with family.

“We are so grateful to have had the opportunity to be a part of our community in this capacity,” Elli said.

One week later, Dec. 13, Two Fox Winery, a micro-winery in Home, shut down its tasting room for business. Owner Tedra Hett said they still plan to operate the winery on a smaller scale.

“We live in a wonderful place with the kindest people,” Hett said. “It’s been a joy to share our wine and our lives with the Key Peninsula.”

This story has been amended to correct the number of Sound Credit Union branches published in the January 2026 print edition of Key Peninsula News. We regret the error.