PHOENIX – Arizona FCU, continuing to struggle with large losses, is shutting two more branches, making a total of six branches closed so far this year.
The latest closings, both in Tucson, are part of an overall cost-cutting plan that includes reduction in workforce, increases in fees, reduction in marketing expenses and media buys, restrictions on employee travel and reduction of mailings, according to Ron Westad, president of the $1.6 billion credit union. Earlier this year, Arizona FCU shuttered two branches in Mesa and one each in Phoenix in Tempe.
The state’s second-largest credit union, which reported a $115.9 million loss for 2008, had a $48 million loss for the first quarter (including a $13.4 million charge for the corporate credit union bailout) and a reduction in net capital to less than 2%.
Still, Westad, in his annual message to members, predicted the credit union will have a positive net for the second quarter.
