Ailing San Diego Metropolitan CU Shutters Two Branches
SAN DIEGO – San Diego Metropolitan CU announced Friday it will close two branches effective Sept. 30, and lay off 12 employees as it tries to right itself from difficult times.
The one-time $307 million credit union, which followed a $7.7 million loss in 2009 with a $2.1 million loss for 20101, broke into the black to the tune of $304,000 for the first half of the year, even as its assets continued a steep decline to $256 million.
The credit union said 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, it has had to tighten its loan underwriting standards to limit risk. The credit union said stronger regulatory requirements have increased compliance costs, and as a result, San Diego Met is looking for additional ways to reduce its operating costs and to improve profitability.
The credit union said its Kearny Mesa and Morena Trolley branches will close Sept. 30, leaving three standalone full-service branches open to assist members. The remaining branches are the Chula Vista, downtown San Diego and El Cajon locations.