Read PR_Branch_Staffing_Change_Final.pdf text version

For additional details, contact: Amy Lewis, Strategy Communications Phone: 619-269-8820 (office)/858-752-1085 (cell), Email: [email protected]

PRESS RELEASE

SAN DIEGO METROPOLITAN CREDIT UNION (SDMCU) ANNOUNCES BRANCH MODIFICATIONS AND CHANGES TO STAFFING

SAN DIEGO, July 29, 2011: San Diego Metropolitan Credit Union (SDMCU) will close two branches effective September 30, 2011, and lay off a total of 12 employees throughout the organization. The announcement was made internally today, and identified employees associated with branch closures will be asked to stay through the last day of branch operations. The Kearny Mesa and Morena Trolley branches will close effective September 30, 2011, but three stand-alone fullservice branches will remain open to assist members. The remaining stand-alone branches are the Chula Vista, Downtown and El Cajon locations. It is SDMCU's intention to remain in the Kearny Mesa and Morena Trolley markets with no surcharge ATMs that are part of the CO-OP and STAR networks. Shared branches through affiliated credit unions, as well as other service delivery channels will be available, such as a call center, online loan applications and home banking. Because of increased loan delinquencies, higher loan losses, increases to loan loss reserves and losses members have sustained in real estate values linked to the economic downturn, SDMCU has also had to tighten its loan underwriting standards to limit risk. Thus, SDMCU had to reduce the number of loans made to members, therefore reducing loan income. In addition, stronger regulatory requirements have increased compliance costs. As a result, SDMCU is looking for additional ways to reduce its operating costs and to improve profitability. These initiatives have been enacted as part of a consolidation plan designed to improve the organization's financial health. Additionally, SDMCU will remain in the local community and has plans in place to minimize disruptions in service to its members. The closures and the layoffs in no way relate to a concern with SDMCU's solvency or the organization's ability to function as its members' primary financial institution. SDMCU is using these changes to preserve its members' equity, while making sound financial decisions to remain well diversified. Management feels this has positioned the credit union to meet the evolving needs of its current and future members, enabling SDMCU to continue to offer new products and services. SDMCU remains committed to serving its membership, staff and the local community. Although the closure of the two branches will require a change in how some members transact business with SDMCU, the credit union is committed to serving all members of the community as they continue to develop new products and services, such as the recently announced solar and energy efficiency lending programs. Additionally, SDMCU will continue regular credit union service to its membership and ensure safe and sound credit union operations. Stan Abrams, SDMCU's President and CEO, comments, "The decision to close two branches and lay off employees was not an easy one and was arrived at after lengthy and thorough analysis and consideration. However, we believe it is the best option available to ensure we remain as effective and efficient as possible and continue to return maximum value to our membership." About San Diego Metropolitan Credit Union San Diego Metropolitan Credit Union (SDMCU) is committed to its community and members and provides services to families and individuals to manage their personal finances. SDMCU has been in business since 1934, and serves over 19,000 members, and is the Official Credit Union of the City of San Diego. SDMCU's corporate headquarters are located in San Diego and information about SDMCU is available on the worldwide web at www.sdmcu.org. ###

Information

1 pages

Find more like this

Report File (DMCA)

Our content is added by our users. We aim to remove reported files within 1 working day. Please use this link to notify us:

Report this file as copyright or inappropriate

539277


You might also be interested in

BETA