LAS VEGAS — Frontier Financial Credit Union is among those encountering one of the odd byproducts of 2009's economy: it doesn't want any more of members' savings.
Bruce Rodela, president and CEO of Reno, Nev.-based Frontier Financial CU, said his credit union is trying to discourage deposits because of the "hang-up" of net capital to total assets.
"I am a proponent of linking net capital to risk assets," he explained.
Frontier Financial is serving its members as best as it can in a tough economy, Rodela continued, including making loan modifications when needed. He said there have been no staff cuts and the four branches in Reno and one in Fernley remain open. "We are trying to maintain all our branches," he said.
"Our staff is mostly intact. We have had some attrition by not hiring to replace people who have left, but we have a long-standing staff so it is hard to even go there."
Loan demand is good, Rodela reported. He said FFCU is not seeing loan growth by leaps and bounds, but it is doing a "fair amount" of new and used car loans.
"Unemployment in Reno is still 13%. There are lots of people asking for help. We just have to work it out and take our lumps."
