What’s more, an employee layoff notice from the credit union has not been posted on Wisconsin’s Department of Workforce Development website. Companies are required by law to submit a Worker Adjustment and Retraining Notification (WARN) notice with their state workforce agencies.

In September 2024, Connexus filed a WARN notice that it planned to lay off 16 employees in November who worked remotely. Earlier this year, Huggins said 14 of those employees were retained with other job offers.

In January, however, the credit union eliminated an additional 18 positions. Connexus did not file a WARN notice for those layoffs, as no such notice appears on Wisconsin’s Department of Workforce Development website. The credit union did not respond to a CU Times inquiry about this matter.

In a prepared statement, Connexus said its strategic initiative launched earlier this year “resulted in the shifting and elimination of several positions, a difficult but necessary decision to ensure the long-term sustainability and success of the member-owned financial cooperative. Streamlining operations and focusing on efficiency have better positioned Connexus to meet the evolving financial needs of its member-owners.”

Connexus, like many financial services organizations, has faced challenges such as slower loan growth, higher funding costs and rising delinquencies.

After reporting a loss of $115.2 million at the end of last year, Connexus posted a $13.8 million loss in the first quarter of this year, according to NCUA financial performance reports.

Its first-quarter Call Report showed the credit union set aside $135.9 million in allowance for loan losses, significantly more than the $109.4 million allowance reported during the first quarter of 2024. Loan delinquencies greater than 60 days totaled approximately $67.6 million, with notable delinquencies in used vehicle loans, and residential, commercial and industrial loans.

Connexus recorded $3.69 billion in loans in the first quarter of this year, compared to $4.66 billion at the end of last year’s first quarter.

Despite these financial challenges, the credit union remained well capitalized at 7.28% in the first quarter, down from 8.35% at the end of last year’s first quarter, according to NCUA financial performance reports.

Moreover, Connexus’ membership has declined by 8,743. In December 2024, it served 473,925 members; by the end of the first quarter, membership had fallen to 465,182, according to Call Reports.

In a prepared statement, the credit union said it launched a comprehensive, multi-year strategic initiative earlier this year to proactively anticipate and respond to rapidly changing market conditions.

“The plan emphasizes three core priorities: Investing in risk mitigation disciplines, controlling operating expenses and leveraging diverse revenue opportunities. These foundational enhancements will further strengthen Connexus, enabling the credit union to seize emerging marketplace opportunities that will directly benefit member-owners,” the credit union stated. “The organization’s renewed focus, combined with the dedication and passion of its highly talented and values-driven employees, positions Connexus for continued success. These strategic efforts will enhance the ability of Connexus to serve members and support their financial well-being for years to come.”