Banking news roundup

The payments fintech Marqeta is cutting about 150 jobs, or 15% of its total workforce, as it tries to recover from the 2022 slump that hurt many technology companies. "This is not a decision we've made lightly but is a targeted move to help us capitalize on the tremendous opportunity in front of us in the most aggressive and disciplined way possible," said CEO Simon Khalaf, according to a transcript of the company's earnings call. For the quarter ending March 31, Marqeta reported losses of $68.8 million, up from a loss of $60.6 million the prior year. Revenue increased to $217 million from about $165 million the prior year. Marqeta grew quickly during the pandemic's rush to digital commerce, then faced financial challenges as the technology economy corrected. Khalaf became CEO in January, with marching orders to diversify revenue sources for Marqeta, which gets a large portion of its revenue from providing technology for Block and its Cash App. Marqeta's contract with Cash App expires in March 2024, and other parts of Marqeta's Block contract expire at the end of 2023. "Our Block renewal continues to be a priority for us. We're actively engaged in helping to drive their success across multiple programs, and the different contracts we have with them all have at least four quarters left to run," said a Marqeta spokesperson in an email. —John Adams

At Bloomberg's Future of Finance forum on Tuesday, Vanessa Holtz (pictured above), who runs Bank of America's operations in France, said that headcount in France would "continue to grow organically according to where our client needs are." Since Brexit, an increasing number of financial institutions have moved key operations to Paris. Stephane Boujnah, CEO of Euronext NV, said on the panel that Brexit-related shifts in the finance landscape have only just started. France's economy has been resilient despite a challenging macroeconomic environment. In addition, the country has been roiled by protests in reaction to efforts by President Emmanuel Macron to reform the pension system. But Holtz said the protests and strikes are not putting off investors making long-term plans. —Alan Katz, Bloomberg News

Southern Security Federal Credit Union in Collierville, Tennessee, has expanded its field of membership to include a larger portion of Memphis and an additional 18 counties in Tennessee, Mississippi and Arkansas. The National Credit Union Administration recently approved plans for the $235 million-asset credit union to add 296 census tracts, which have an estimated potential membership of 1.1 million. The credit union currently has roughly 23,000 members.

"We pride ourselves on partnering with our members to increase their financial knowledge while positively impacting their personal and business finances. We believe we can be a great resource to the underserved residents and businesses in this expanded territory of the mid-South," said Dawn Graeter, Security Federal Credit Union President and CEO, in a press release Wednesday. Southern Security partnered with Dollar Associates, LLC, to expand its field of membership. Chris Dollar, a senior consultant with the firm, said Southern Security was and remains a multiple common bond federal charter, which has been serving employer groups in the west Tennessee market. "The expansion builds on this foundation and allows for geographic qualification in the approved underserved areas," he said. Southern Security earned $252,000 in the first quarter of 2023, a 92% increase compared with a year earlier, according to call report data from the NCUA. —Ken McCarthy