CU Convert Trims Jobs to Stem Losses

Credit Union Journal   September 17, 2007

FORT WORTH, Texas – OmniAmerican Bank, a credit union-turned-bank, said last week it has laid off 35 of its 410 employees, or 8% of its workforce, to right itself after incurring losses following its conversion. Along with positions lost through attrition, the former credit union has cut its workforce by 12.5% in recent months after losing about $1 million last year following its controversial charter switch. "The bottom line is, we need to right-size the bank," Tim Carter, who took over as president and CEO in June following the death of long-time CEO Larry Duckworth in February, said in a statement. He attributed last year's losses to the costs incurred in the charter switch and expansion of services.

© 2007, Used with permission from The Credit Union Journal. All rights reserved.