RALEIGH, N.C. – Coastal FCU, hit hard by the state’s recession, announced yesterday plans to shutter four branches as part of an effort to refocus on its core operations in the Raleigh market.
"This is where we enjoy our strongest market share, solid brand recognition and best return on our investment," said Larry Wilson, president of the $2.2 billion credit union, in a statement. "Rather than spread ourselves thin by continuing to support physical branch operations in two major markets, we're committing to focus on branch growth and expansion throughout the Triangle market."
Coastal, a former IBM employees credit union, reported an $18.2 million loss for 2008 and a $28 million loss for the first three quarters of 2009, which included a $16.2 million charge for the corporate credit union bailout.
The planned closures include in and around Charlotte and one in Johnson County.
Coastal said the Charlotte branches have had to contend with a smaller membership base, minimal market share and a limited branch network, while facing much stronger competition from banks and other credit unions. The Johnston County branch has not met performance requirements after five years, and is being combined with Coastal’s nearby White Oak branch.
