Altura Credit Union Closes Branches in Murrieta, Temecula

Two Altura Credit Union branches in Southwest Riverside will close their doors in May.

The branch located at 40412 Murrieta Hot Springs Road, will be converted to an all-electronic/ATM-only office as of May 11. A Temecula branch located at 44575 Avenida De Missiones will be converted to the same as of May 10.

Along with these branch closures, a branch in Riverside and an in-store branch in Wal-Mart in Moreno Valley will also be closing.

"These four offices were among our most recent branch openings. Murrieta opened in 2006, while the others opened in 2008 – just before and during the onset of the Recession. These offices didn’t have the opportunity to grow and reach their potential, and as a result, we will be reducing their presence," said Altura Credit Union CEO Mark Hawkins in a letter to members.

Hawkins said the Riverside County unemployment rate of 14.1 percent has impacted member’s lives and their ability to repay loans. As a result, Altura’s loan losses peaked in 2010. He said auditors recommended adding $3 million to the credit union's loan loss reserves, requiring Altura to restate its 2010 year-end financial results.

"That change required us to report a loss of $5.8 million on assets of $726.8 million in 2010 rather than the $2.9 million loss originally reported," Hawkins said.

Because of loan delinquencies, Altura had to tighten its loan underwriting standards to limit risk, thus reducing the number of loans to members and reducing loan income as well, he said. As a result, Altura is looking for additional ways to reduce operating costs and improve net income.

Closing the branches is an attempt to return Altura to profitability while minimizing disruptions in service to its members, Hawkins said.

After May 18, Altura will have eight full-service branch locations in Riverside County: three in Riverside, and one each in Corona, Moreno Valley, Hemet, Rancho Mirage and Indio.