Altura CU Announces Branch Closings, Lay-Offs

RIVERSIDE, Calif. – Altura Credit Union, which posted a $6.1-million loss in 2008, said it will shutter two branches and convert a third to an electronic branch, in the process cutting 35 jobs, or 15% of its workforce.Overall, the $958-million Altura  CU has also chosen not to fill an additional 27 open positions over the past 12 months. The total number of eliminated and unfilled positions represents 20% of Altura’s staff.Mark Hawkins, Altura’s president and CEO, told Credit Union Journal the troubles in the regional economy have led to hardships for the credit union, but the recent special assessment from NCUA to bolster the corporate credit unions followed by the conservatorship of San Dimas-Calif.-based WesCorp have proven to be too much to handle without making reductions. “This has been tough,” he said. “Our area certainly has had its challenges during the economic downturn. The final straw was having to pay the NCUSIF and the corporates. We will have to pay more than $9 million, and that is on top of our loan losses. We sat down and looked at those branches we could live without, and those positions that were not absolutely critical to our moving forward.”Sixteen branch positions and 19 positions at Altura’s headquarters were eliminated as part of the downsizing. In an effort to minimize layoffs, Altura said it has implemented a series of cost-cutting measures. These include reducing benefits and compensation for all employees, including the senior management team. “Just like our members, every one of us is having to sacrifice during this economic downturn,” Hawkins said.