Poppy Bank Expands Physical Footprint While Rivals Retreat

As major U.S. banks continue shrinking their branch networks, one California-based financial institution is taking the opposite approach.

Poppy Bank celebrated its newest branch opening in East Pasadena on March 11, part of an ambitious expansion that includes plans for 10 additional locations this year. The move highlights the institution’s commitment to physical banking at a time when industry giants are reducing their brick-and-mortar presence.

“We are expanding in Southern California and we feel like Pasadena is a very vibrant city. We wanted to have a location in Pasadena. We like the city!” said Khalid Acheckzai, Poppy Bank’s President and Chief Executive Officer.

The new branch, located at 36 Sierra Madre Villa Avenue, Unit 101, will operate Monday through Friday from 9:00 a.m. to 5:00 p.m. Wens Sanchez, a financial industry veteran with 22 years of experience, will serve as VP and Branch Manager.

While major financial institutions frequently cite branch overlap as justification for closures, Poppy Bank is employing a more calculated approach to its physical distribution strategy.

“While we are not in every corner like some of the big banks, our branches tend to be only 5-10 miles apart,” Acheckzai explained.

This strategic spacing reflects the bank’s focus on establishing a meaningful but efficient physical presence rather than saturating markets.

Southern California figures prominently in Poppy’s expansion plans. New locations slated for 2025 include Brea, Newport Beach, and downtown San Diego with La Mesa following in 2026. The bank also recently opened locations in Santa Monica and Scripps Ranch. In Northern California, the bank is planning on opening branches this year in Los Altos, downtown San Jose, Danville, Novato, and Millbrae. They also recently opened a location in downtown Walnut Creek.

Each new branch typically generates approximately five positions, including management, operations, new accounts representatives, sales staff, and lending professionals.

Under Acheckzai’s leadership as CEO, which began in 2017 when he transitioned from his previous roles as the bank’s chief financial officer and chief operating officer, Poppy Bank has demonstrated consistent growth. The institution has expanded from approximately $900 million to about $7 billion in assets, representing a steady annual growth rate of 20-25%.

This performance stands out during a period when many traditional banks face intensifying pressure from fintech competitors and changing consumer preferences.

Poppy Bank differentiates itself primarily through higher deposit rates and relationship-focused service, according to Acheckzai.

“We actually pay very competitive rates. Our rates are the highest in California because we do believe in paying our depositors for the deposits they keep with us,” he said.

The bank currently offers a 4.00% Annual Percentage Yield (APY) on 6, 9, and 12-month Certificates of Deposits (CDs) and similarly offers a competitive savings rate in the 4.00% APY range. These rates substantially exceed those of major national banks and even surpass offerings from many comparable community financial institutions.

Beyond competitive rates, Poppy Bank has developed specialized financing products targeting business clients. Its Commercial Property Assessed Clean Energy (C-PACE) program allows commercial property owners to fund energy-efficiency improvements through an alternative payment structure.

“That actually is something that’s paid through your tax assessments. You don’t make a payment on it monthly. You make payments when you pay your property taxes twice a year,” Acheckzai explained.

He noted that the financing obligation “stays with the property, not with the individual person selling,” making it an attractive option for business clients focused on sustainability improvements.

In an era of digital banking, Poppy maintains that personalized service remains its core competitive advantage.

“The benefit we really provide is that our team genuinely gets to know clients on a personal level. When they walk in, they are greeted by name. This allows us to stand out as a community bank.” Acheckzai said.

The bank extends this community-focused philosophy beyond its branch operations. Each location is required to engage with local nonprofits and participate in financial literacy initiatives through organizations like 10,000 Degrees and Junior Achievement.

“We are a true community bank, and each branch is really focused on the communities they serve. Supporting nonprofit organizations through volunteerism is an expectation of each employee and is built into our business plan,” Acheckzai said.

The East Pasadena opening represents just the beginning of the bank’s ambitions in the area.

“The Pasadena market is an opportunity for us, a great opportunity. And I think opening this branch is just the first step in serving that area,” Acheckzai said.

Poppy Bank’s expansion strategy comes at a pivotal moment for the banking industry, as many institutions reevaluate the role of physical locations in an increasingly digital financial landscape. Whether this contrarian approach will yield sustained competitive advantage remains to be seen, but for now, Poppy Bank is banking on the enduring value of face-to-face financial services.