Maxim, who joined MSUFCU in 2007 as a web developer, has held several leadership roles. He launched and currently leads the credit union’s innovation hub, The Lab at MSUFCU. He also serves as COO of Reseda Group, a CUSO owned by MSUFCU.

Clobes said the credit union regularly assesses staffing levels by volume and typically manages changes through attrition or shifting employees to different departments. However, no comparable roles were available for the 24 laid-off employees, who received severance packages and job placement support.

“Any people decision where we reduce positions is difficult and not done without careful consideration,” Clobes said. “The technology leadership and human resources worked to determine the staffing levels and skills needed for our current project plans and strategic direction.”

The credit union’s IT division currently employs 121 people.

Although the credit union has faced financial headwinds last year and into this year’s first quarter, Clobes said those challenges did not influence the job cuts.

“These position reductions were strictly related to the strategic direction related to the technology reorganization,” Clobes said.

MSUFCU posted a loss of $21.3 million last year, according to NCUA financial performance reports. By the end of this year’s first quarter, the credit union recorded a $1.5 million loss.

MSUFCU’s first quarter Call Report indicated that the $1.5 million loss was primarily due to escalating credit losses, driven by deteriorating loan quality and higher provisioning, heavy operating costs in staff and services, and tight interest margins, reflecting a tough rate environment and competition for deposits. 

However, she said the credit union’s financial picture has improved.

“Working with our board, we decided to manage the one-year loss instead of altering our strategic growth plans. While the 2025 first quarter Call Report had losses for the first quarter, those are now recovered,” Clobes said. “We have had positive earnings since April 2025 and the second quarter Call Report will reflect the improved financial position as planned and board approved. Our loan losses have stabilized now post-COVID.”

Last year’s losses were directly related to the CECL impact, according to Clobes.

“We increased our allowance significantly (from $37.7 million in 2023 to $59.7 million in 2024),” she said. “In addition, in a 5.50% rising rate environment with a sizable held mortgage portfolio, our ALM model projected losses until enough of the portfolio repriced with new loans. Due to our growth and proper management, we reduced the expected loss time by more than one year.”

Peter Strozniak can be reached at [email protected].