As part of year-long cost-cutting the $423 million Arizona Central Credit Union of Phoenix, announced this week it is closing one of its 12 statewide after having to reduce its current payroll to 170 employees.
"[The planned closing of the Scottsdale branch Nov. 25] is part of our ongoing efforts to control operating expenses and in this case that particular facility just was not performing as well as we had hoped," explained Todd Pearson, president/CEO.
All during 2009, Pearson has been engaged in striving to turn around the Phoenix CU, which lost $6.8 million through the third quarter, a widening of the $5 million in red ink in the second quarter. In 2008 Arizona Central lost $8.2 million, much of it on indirect auto and related loan losses. Its capital ratio currently stands at 8.2%.
Pearson, who became CEO in June after serving since January on an interim basis, said despite the severe problems borne by his CU amidst the deep Arizona recession, he was cautiously optimistic that "things will be turning around" as delinquencies, though still high, are leveling off.
Arizona Central, which at one time operated like a corporate for CU employees across the state, recently started offering first mortgages though it has had first equity on its product shelf, said Pearson.
"Closing of a branch is not an easy but fortunately we've been able to find jobs for everyone at that facility," said Pearson.