The $722 million Altura Credit Union in Riverside, Calif., will close four branches and is apparently laying off 11% of its workforce.
In a letter on its website, Altura CEO Mark Hawkins said the four branches due for closing are the most recent ones opened. Hawkins blamed the ongoing bad economy, which he said had improved but not enough.
“The Riverside/Inland Empire area appears to be stabilizing, but not yet staging a comeback. Unemployment remains high at 14.1%, which impacts our Member’s lives and their ability to repay loans. As a result, Altura’s loan losses peaked in 2010,” Hawkins' letter said.
The credit union said 26 employees will lose their positions in the closings, representing 11% of the 223 full time positions the credit union reported on its December 2010 report to NCUA.
Altura also significantly restated its results for 2010 to increase the reserve for loan losses, the CU said, increasing them by $3 million.
Altura’s restated financials show a loss of $5.8 million for the year on assets of $726.8 million. Originally, Altura reported a loss of $2.9 million for 2010, the CU said.