RIVERSIDE, Calif. — The credit union movement continues to lose leaders with decades of experience, the latest being Mark Hawkins, who has been president and CEO of what now is known as Altura CU since February 1988. Late Monday, Credit Union Journal learned Hawkins will retire in February 2017.
Hawkins is expected to inform the staff of his planned retirement at a meeting Tuesday morning.
On Monday, Altura's board of directors said the recruiting process already is underway to find the CU's next chief executive. The board is working with John M. Floyd & Associates (JMFA), which specializes in credit union and banking recruitment services. The process is expected to be completed no later than early 2017.
Hawkins, now 64, assumed his role as CEO of what then was known as Riverside Schools Credit Union in February 1988. At the time, the credit union had $37 million in total assets, three branches, 28 employees and 14,000 members. Under Hawkins' leadership, Altura has grown to more than $1.2 billion in assets, 13 branches, 375 employees and 116,000 members. Altura says it is the largest credit union headquartered in Inland Southern California.
Earlier this month, Altura reported "exceptional" income growth during a stellar first quarter.
Late Monday, Hawkins told CU Journal he and the Altura board began advance planning for his retirement some 10 years ago. The target age at that time was 64, and Hawkins will turn 65 this November. A medical condition also influenced the timing, he said.
"I have multiple sclerosis and would like to enjoy as much of my retirement as I'm able to do," he said, pointing out the disease does not yet affect his ability to walk or work out. "This is a year later than originally discussed due to the recession. The credit union is in very good shape, so this is the perfect time. The actual date is not until February, which gives the board plenty of time to conduct a search. JMFA will post the job on Wednesday," he added.
Recession Still Affecting Area
Altura — along with almost every other financial institution in the Inland Empire region of Southern California, east of Los Angeles — suffered terrible losses during the recession due to widespread unemployment and plummeting home values. At the end of 2007 the CU had more than $1 billion in assets, but then lost $13.7 million in 2008, $20.1 million in 2009 and $5.8 million in 2010 before finally restoring black ink.
"There were a lot of good times before the recession," Hawkins recalled. "Hopefully, the recession will be a one-time-only event. I hope we do not see something like that for a long, long time."
Hawkins said Altura's main service area was hit harder than any other region in the U.S., as unemployment skyrocketed from 4.3% to more than 15% in just three years.
"We went from home values that were exploding — and, in retrospect, perhaps at an unsustainable level — to falling rapidly. And when they fell 75% to 80% it impacted people's lives. We had to close branches, and we laid off 140 people, which are things you just don't want to have to do. It was not a fun period of time. There is a lot of healing that is still going on, with members retiring debt, but it is better than it was."
Looking back, Hawkins said Altura "came through" the hard times, "and we are very proud of that. No one intends to work in any position forever. I have been here a long time and am looking forward to the next step. Anything I can do to assist in the process of finding the next CEO, I will do."
Originally founded in 1957 as a credit union for the school employees of the Riverside Unified School District, in 1998, the credit union merged with Riverside County Federal Credit Union to become Riverside County's Credit Union. In 2004, the credit union expanded its field of membership to anyone who lives, works, worships or attends school in Riverside and San Diego counties, and certain cities in San Bernardino and Orange counties. Coinciding with that expansion, the credit union's name was changed to Altura Credit Union.
In 2015, Altura completed a strategic merger with Visterra Credit Union, also based in Riverside County.
Leaving a Legacy
Ofelia Valdez-Yeager, Altura's board chairman, said in a statement, "Over the years Mark Hawkins has repeatedly demonstrated his commitment to Altura's members and the community at large. We have some big shoes to fill. Making our job easier is knowing that Mark is turning over a financial institution that is strong and well-positioned to meet the needs of our members and our communities of service now and into the future."
In recent years, Altura has been recognized three times with the state-level equivalent of the Malcolm Baldrige National Quality Award and has been cited as a top employer many times. Additionally, the readers of the Press-Enterprise, the Inland Empire's largest newspaper, have selected Altura as the "Best Bank or Credit Union" in three of the past four years.
Asked what he is most proud of, Hawkins replied, "Building something, which was my intention."
"There have been a lot more good times than bad," he said. "When I came here we had $1.89 million in net worth, and by the time I retire we will have $130 million in net worth. We have made Altura into something that matters in this marketplace. The board is a great board, everyone is concerned about the credit union and the community. The city of Riverside is a great place to call home, and my wife and I will continue to call it home."
Hawkins holds a bachelor's degree from Indiana University, Bloomington, and earned his MBA from Florida Southern College. Prior to joining Altura, he held credit union posts in Florida and Indiana. In 2006, Hawkins received an Honorary Doctorate of Commercial Science from California Baptist University.
In the credit union industry, Hawkins is a past board member and chairman of the Credit Union Executives Society (CUES), in Madison, Wis., and has also served as a member of the California Credit Union League's Tri-County Chapter Board of Governors. Hawkins chaired the CCUL's Political Action Committee, and currently serves on the CCUL's Regulatory Advocacy Committee.
Hawkins remains active in the Riverside community, currently serving on the boards of the UC Riverside Foundation and the UCR Highlander Athletics Association. Hawkins is treasurer of the Riverside Community College District's Foundation, a member of the California Baptist University Board of Visitors and a member of the La Sierra University Foundation. In addition, Hawkins is a Past Chairman of the Greater Riverside Chambers of Commerce, Past President and founding member of the Riverside Educational Enrichment Foundation, Past Chairman of the United Way of the Inland Valleys, and Past President of the Kiwanis Club of Riverside.
Looking Ahead
Hawkins said he "used to be a golfer," but has not played much in recent years. "I feel I would be able to take it back up because I enjoyed playing golf. My wife taught school in Riverside for 42 years. We have three granddaughters within 45 minutes. We want to travel."
Asked his opinion of the CU movement as a whole, Hawkins said he has "great feelings" about it.
"My dad was a credit union CEO, so I have been a credit union member all of my life. I am very proud of that. The movement has undergone a lot of change, and that will continue. The government needs to figure out its role with heavily regulated, insured institutions. We need clarity from the government that I would hope would give credit unions and community banks some clarity and direction."
Hawkins said when he says goodbye to the staff Tuesday, he will let the folks know they can anticipate the credit union "will remain in a good place."
"We are adding members at a rapid pace — a pace we have not seen in 10 years," he said. "There are a lot of positives that we are happy to be part of. I will be leaving but it will be the same board, which is a great group of people. I am excited for the future of the credit union. The growth potential for this area is really something."
