BOULDER - Elevations Credit Union announced late Friday that it is eliminating 13 staff positions and closing its Erie branch as part of an expense control initiative.

The Boulder-based credit union said the staff reductions amount to about 6 percent of its 200 employees, and will save about $1.2 million per year.

The Elevations Erie branch, located in the Village at Vista Ridge at 3140 Village Vista Drive, Suite 104, is expected to close on Jan. 30, 2010. The branch opened in September 2008.

"In the initial analysis, there was a significant projected increase in the number of households within the (Erie) market area, in addition to large retail developments that were planned for this area," said Gerry Agnes, president and chief executive officer of Elevations. "The projected growth and economic assumptions simply did not materialize and we do not foresee the market conditions changing substantially over the next several years. So, regrettably the decision had to be made to redeploy our members' capital that provides for more benefits to our membership."

Elevations will continue operate eight other branches in Boulder and Broomfield counties, which include four branches in Boulder, two in Longmont, and one each in Lafayette and Broomfield.

Elevations officials said the moves were a result of current economic conditions. The credit union's deposits have declined slightly in the past two quarters, and like all financial institutions, it cut back lending.

However, like many credit unions, Elevations has maintained healthy loan portfolios with total foreclosure and delinquencies accounting for only 1.5 percent of its outstanding loans.

Elevations remains the largest credit union in the Boulder Valley with more than $920 million in assets, serving more than 80,000 members.