Altura Credit Union announced that it will cut 35 jobs, close two branches and transition a third branch to an electronic branch.
The $958 million-credit union based in Riverside, Calif. also eliminated 27 open positions over the past 12 months, which makes the total number of eliminated positions 20% of Altura's workforce.
"Everyone knows these are tough times," said President/CEO Mark Hawkins. "We are adopting a proactive approach to address them. Altura has a 51-year history in this community and we take this responsibility very seriously. In order to assure our future is as successful as our past, we have had to take some difficult steps to reduce our expenses."
The San Jacinto and Coachella branches will close and the Corona branch will transition to an electronic branch. The credit union also has reduced benefits and compensation for all employees.
"Our delinquencies and losses are the highest we've seen in nearly three decades. As a result, provision costs are also up sharply," Hawkins said.
In reference to the NCUSIF and issues regarding the corporate credit union system Hawkins added, "We anticipate an added charge for Altura in excess of $9 million. With all these factors converging at once, reducing our expenses had to be done."