ANNUAL

ANNUAL
REPORT
2015
Vincent Laterri
Member since 2007
COMMITMENT. CONVENIENCE. COMMUNITY.
®
Federally Insured by NCUA
CONTENT
Jamie Sheldon
Member since 1998
2
04
Commitment. Convenience. Community.
06
Altura Credit Union at a Glance
08
Letter from Ofelia Valdez-Yeager,
Chairwoman of the Board
09
Letter from Mark Hawkins,
Chief Executive Officer
10
Manage Your Financial Life with Altura’s Tools
11
Auto Expert – Convenience, Commitment in Car
Buying & Financing
12
Altura Invests in Community Success
13
Altura Scholarships Fund Dreams
14
Financial Statements & Graphs
16
The Altura Team
18
Becoming a Member
“ALTURA HAS
BEEN THERE WITH ME THROUGH IT ALL”
M I C H E L L E TA B U L A
Member since 2002
3
“ALTURA HAS BEEN
VERY HELPFUL &
KNOWLEDGEABLE”
GUILLERMO ALTAMIRANO
Member since 2007
COMMITMENT. CONVENIENCE. COMM
It’s All Part of #
4
MUNITY.
#AlturaCares
Altura Credit Union has been a proud
part of the Inland Empire for nearly six
decades. Our long-standing presence
gives us special insight into what our
Members and what communities want
from their financial institutions.
That’s why Altura remains committed to
creating the kinds of products and services
our Members need to achieve their financial
dreams and to secure a safe financial
future.
Altura recognizes that in today’s fast-paced
world people are seeking quick, convenient
and responsive financial services organizations.
That’s why we have 13 branch locations
to serve the Members in our market. In
addition to our full service locations,
Altura has 52 ATMS throughout Riverside
County. Additionally, as an Altura
Member you have access to over 5,200
shared branching locations and 30,000
free ATMs nationwide. If you prefer to
access our products and services from
anywhere, Altura offers online banking
and mobile banking, including online
and mobile loan applications, and services like PopMoney, a personal payment
service.
Being a part of our communities has
always been important to Altura. In 2015,
we created #AlturaCares to inspire our
Members to contribute money and to
donate their time to the worthy causes
of their choice. We then worked with
Members to support four local charities:
•
•
•
•
The Fire & Burn Foundation in Colton
Loving All Animals in Palm Desert
The Corona-Norco Settlement House
The Hope Food Bank in San Jacinto
Every time a Member makes a purchase
with their Altura Debit or Credit Card,
a portion of each sale is set aside for
charity. Based upon such Member activity,
Altura contributes up to $5,000 in each
quarter. In 2015, each organization
received a $5,000 donation.
At Altura we demonstrate our commitment
to our Members and our communities on
a regular basis. Working together, all of
us contribute to making the Inland Empire
a great place to live and work!
5
AT A GLANCE
FOUNDED IN
1957
MEMBERS
EMPLOYEES
13
LOCAL
BRANCHES
USED
VEHICLE LOANS
NEW
VEHICLE LOANS
5,456 10,540
iCHECKING
ACCOUNTS
CHECKING
6
10,227
ACCOUNTS
CREDIT CARD
62,282
744,851
TRANSACTIONS
NET INCOME
TOTAL ASSETS
$6.2 MIL
$1.15 BIL
Net Worth Ratio
10.55%
STATISTICS
DEBIT CARD
TRANSACTIONS
CALLS
TO MEMBER SERVICE CENTER
16,485,275
357,148
FREE CO-OP
ATM MACHINES NATIONWIDE
CO-OP
BRANCHES NATIONWIDE
30,000
5,200
SOCIAL MEDIA
FACEBOOK
INSTAGRAM
4,739
869
TWITTER
SNAPCHAT
521
60
7
CHAIRWOMAN
STATEMENT
OFELIA VALDEZ
YEARGER
Chairwoman of the Board
Dear Altura Members,
As Chairwoman of the Board, I am very
proud of Altura Credit Union and where
we are today. We fought through the “Great
Recession” and have come through it as an
intact and successful credit union. Speaking
for the Board, management team and all of
our employees, I can honestly say we are
here today because we acted in the best
interest of our Members.
Thank you for believing in Altura and sticking
with us through difficult times. I am honored
to be serving you in my first term as Chairwoman.
However, because of my many years on the
Altura Board, I know Altura’s successes are
the result of all of us working together.
As the first woman Board chair, I think I
bring a unique perspective to my role. My
chairmanship reflects Altura’s willingness
to embrace diversity with an emphasis on
inclusion. I am thrilled to be working with
our Board, including our new Members from
Visterra Credit Union, as we strive to keep
Altura moving forward.
Our stronger financial position enables us to
ramp-up initiatives for reaching out to Millennials,
as well as the broader Latino community.
8
After scaling back during the recession,
we are also reasserting our community
commitments.
Part of moving forward in 2016 will be
selecting a new Chief Executive Officer.
Mark Hawkins, who has been Altura’s CEO
for 29 years, has announced his intention
to retire in early 2017. The Board has big
shoes to fill as we search for his replacement.
I speak for the Altura family when I say we
are comforted knowing that Mark is turning
over a financial institution that is financially
strong and well positioned to meet our
current needs and future challenges as
well. Thank you, Mark, for your many years
of service to our Members, employees and
the community.
I also wish to express my thanks to you,
the Members, for believing in Altura and
choosing us for your financial services
needs.
Sincerely,
Ofelia Valdez-Yeager
CEO
STATEMENT
MARK HAWKINS
Chief Executive Officer
Dear Members,
I am very proud to report that 2015 was
an excellent year for Altura, on a number
of fronts. The year just ended was the
fifth consecutive year of strong financial
performance. Altura ended the year with
a Net Income of $6.20 million on Total
Assets of $1.15 billion. Net Worth equaled
$120,280,217 and our Net Worth Ratio
stood at 10.55%.
Also in 2015, Altura completed its merger
with Moreno Valley-based Visterra Credit
Union. The strategic decision by both
Boards of Directors to pursue this merger
strengthens Altura’s long-term options and
its resiliency in a marketplace changed by
the “Great Recession.” (The final elements
of the merger were completed in early
2016.)
Our merger creates new opportunities for
our Members. Operating from a stronger
regional base, Altura will realize expanded
options for new products and services,
added convenience through more branch
locations, reduced operating costs that
will make us more competitive and a
renewed commitment to our local markets.
University Avenue (Riverside) branch in
February of 2015. The improving economy
also refreshed Member demand for consumer
credit, which resulted in new loan production
of more than $250 million; our highest
production total since before the recession.
Another positive sign is seen in credit
union Member growth - it’s booming! More
than 5,000 new Members have been added
in just the first five months of 2016. This
is the highest number of new Members we
have seen in nearly a decade.
We are very thankful for the successes of
2015 and the beneficial impact they are
having for our Members and Altura. Our
commitment to serving you, though tested
during the recession, has never wavered
and our 2015 achievements have built
tremendous momentum for the year that
lies ahead.
Our commitment remains focused on the
road ahead and we greatly appreciate your
continued trust and support.
Sincerely,
Mark Hawkins
The continued economic recovery in the
Inland Empire enabled Altura to reopen our
9
MANAGE YOUR FINANCES
With Altura’s Tools
Juggling all the pieces of our busy lives is often more than we can manage. Not surprisingly, sometimes it’s an important
piece, like your financial life, that drops off the radar. Altura is committed to delivering the tools you need to get
your financial life under control. That means we go beyond the standard checking and savings accounts to create new products
and services that make a real difference.
Credit Builder Loan
Credit Builder is designed specifically for people who need to establish credit or for those who need to
rebuild their credit. Taking out a loan, making payments on time, and paying off your loan is one of
the best ways to boost your credit score. But if you have a low credit score or are just starting out,
many financial institutions won’t give you the time of day. At Altura, we see this as an
opportunity to help.
With the Altura Credit Builder Loan you can borrow up to $3,000. The money is placed into
a Certificate of Deposit; which we call Share Certificates. Then you make easy monthly
payments, and once the loan is paid off, you have access to the cash that’s been put
away. You can apply on our website: AlturaCU.com.
Mobile Tools
Convenience is a priority for most people these days. The easier
things are to manage, the easier it is for us to juggle all those
pieces in our lives. Digital, mobile and online access are important
tools that can help.
Altura offers a robust online banking platform through our website
at AlturaCU.com. We also have apps for various mobile devices,
including iPhone, iPad and Android devices. You can even apply for
a loan online or using our app.
Online Tools
Recently, we added PopMoney, a personal payment service that makes sending and receiving money as simple as texting and
emailing. After you enroll in free Web Bill Pay, you can send funds by email, mobile device or directly to another person’s
financial institution.
Social Media
Altura is now active on Facebook, Twitter, Instagram and Snapchat. We’d love to hear from you, so please follow and
“friend” us.
Altura Milestones in 2015
• Altura completed its merger with Visterra Credit Union in August, creating a financial
institution of more than 1.2 billion as of March 20, 2016.
• Altura’s branch at 1616 University Ave. in Riverside was returned to full operation
in February after serving as an ATM-only location since 2011.
• The San Jacinto Education Foundation named Altura as the 2015 Business of the
Year in recognition of its creation and sponsorship of the local Student of the
Month program.
10
AUTO EXPERT
Convenience, Commitment in Car Buying & Financing
Few things in life are more intimidating
than shopping for a new car. There
are just so many things NOT to like
about the process.
With Auto Expert and Altura working
together, you can wave goodbye to
those concerns. Auto Expert’s auto
locating and buying service brings
a whole new level of convenience
to vehicle shopping. You don’t even
have to leave home. Simply tell Auto
Expert what you’re looking for in a
new or used car. Your Auto Expert
Advisor will be committed to finding the
right car for you at a price you’re
going to love.
Auto Expert’s service also includes
trade-in assistance, and a mobile
solution for after-market product
add-ons to make your purchase
experience extra special.
DRIVEN BY
Altura also offers 100% financing on
new and used vehicles, including
the tax and licensing fees, when
you use Auto Expert to make your
purchase.
In 2015, Auto Expert delivered 2,065
cars, an increase of 15.4% over
2014. The average Member savings
on new car purchases was $1,553.
Surveys show Members are pleased
with their Auto Expert purchasing
experience, giving Auto Expert a
95.79% satisfaction rating!
In addition to Altura, Auto Expert is
also partners with 11 other credit
unions to provide auto buying and
locating services to their combined
600,000 Members. For information on
how Auto Expert can assist you, visit
Autoexpertonline.com.
®
11
ALTURA INVESTS IN
Community Success
Altura Credit Union is a Member-owned organization. Yet, we are linked to our communities in many vital ways. It is where
our Members and employees live. It is where we do business, and Altura is invested in the success of all those around us. By
helping one another, we all thrive.
Altura demonstrates its community commitment by contributing to a number of non-profit, charitable, educational,
military support, police, public service and business support organizations throughout the Inland Empire. In addition
to monetary contributions, our employees also support their favorite organizations by volunteering their time.
In 2015, Altura donated $250,000 locally to our schools, universities and other education - and student-related activities,
as well as military support organizations. This represented an increase of 81% over 2014.
IE United Relief Fund
On Dec. 2, 2015, the mass shooting in San Bernardino shocked the country
and pulled our local communities together. Altura established the IE
United Relief Fund to benefit families directly impacted by the tragic
events.
Altura accepted donations at our branches and through our website.
Contributions of $10,842 from Members and the community were
matched with a $10,000 donation from Altura. The entire $20,842 was
donated to the San Bernardino United Way Relief Fund, which was
created by the Arrowhead United Way and the San Bernardino County
Board of Supervisors specifically to assist shooting victims and their
families.
#AlturaCares Campaign
In partnership with our Members through our #AlturaCares community campaign last year, Altura donated $5,000 to four
separate local charities for a total of $20,000. Every time an Altura Member made a purchase with their Altura Credit Card or
Debit Card, a portion of each sale was set aside for charity, up to $5,000 in each quarter. #AlturaCares worked closely with
Altura’s Members to identify four local charitable causes and those Members were featured in local TV ads and billboards to
promote the fundraising campaign. The four selected charities were: the Fire & Burn Foundation in Colton, Loving All Animals
in Palm Desert, the Corona-Norco Settlement House and Hope Food Bank in San Jacinto.
Other ways Altura, our Members and our employees showed community commitment
in 2015 include:
• A dozen Altura employees read books to Riverside elementary school
students as part of Read Across America day.
• Altura gathered donations of peanut butter & jelly several times in
2015 for Hangar 385, a hospitality program for troops deploying from
or returning to March Air Reserve Base.
• Altura partnered with Cal State San Bernardino and non-profit First
Book to distribute 40,000 new books to local students for free.
• Altura and the San Jacinto and the Hemet/San Jacinto Valley
Chambers of Commerce honored six high school seniors as
“Students of the Year” and awarded each an $1,800 college scholarship.
• Altura Members and employees filled a van with $900 worth of
donated school supplies as part of the county’s annual “Fill a Backpack” program.
12
ALTURA SCHOLARSHIPS
Fund Dreams
The cost of attaining a higher education continues to rise in California and across the U.S. These rising expenses threaten the
dreams of high school seniors who hope to attend college. Altura has had strong ties with education since its founding. Its history
and a strong belief in the value of education led Altura to create a scholarship program to help those dreams become reality.
In 1993, the Altura Credit Union Scholarship Foundation was funded to assist graduating seniors from local high schools who
planned to attend college. Students from any Riverside County high school, public and private, can apply for our Altura
scholarship. Since its inception, more than $430,000 in scholarships have been awarded to 462 students to help pay the costs
of higher education.
Altura’s Scholarship Figures for 2015
•
•
•
•
41 scholarships of $1,000 each were awarded.
23 of those were general scholarships.
5 scholarships went to students in AVID Programs.
10 scholarships were designated for students planning to attend the
University of California, Riverside.
• 3 Memorial Scholarships were awarded.
Monica Acosta
Member since 2009
Altura is committed to local students having a chance at college. Visit
the Scholarship Page at AlturaCU.com for more information.
13
FINANCIAL
STATEMENTS & GRAPHS
2014
NCUA Peer Avg.
2015
Altura
60
1400
1200
1000
800
600
400
200
50
Percent %
$ Millions
HIGHLIGHTS
40
30
20
10
Total
Assets
Total
Loans
Total
Shares
Asset
Growth
Total Net
Income
STATEMENT OF FINANCIAL CONDITION
Loans to Members
12/31/14
Less: Loan Loss Allowance
$411,469,119 (6,355,390)
Share
Growth
Loan
Growth
12/31/15
$686,059,331 Equity
Growth
%Change
66.73%
(7,097,031) 11.67%
Cash on Hand and in Banks
123,777,942 130,973,781 5.81%
Investments
155,458,546 241,626,538 55.43%
20,100,192 29,498,651
46.76%
3,683,745 5,302,625
43.95%
49,168,292 68,012,860
38.33%
$1,154,376,755
52.43%
Land & Building (Net)
Other Fixed Assets (Net)
Other Assets Total Assets $757,302,446 Accounts Payable/Other Liabilities
13,244,753 17,252,877 30.26%
Total Liabilities $13,244,753
$17,252,877
30.26%
Total Members’ Shares
1,016,843,661
55.62%
13,419,033
0.00%
108,407,555
40.46%
(1,546,371)
-6445.65%
90,623,793 120,280,217
32.72%
$757,302,446 $1,154,376,755
52.43%
Regular Reserve
653,433,900 13,419,033 Undivided Earnings
77,180,391
Net Unrealized Gains/Losses on AFS, Investments Total Equity TOTAL LIABILITIES, SHARES & EQUITY
14
24,369 STATEMENT OF INCOME
Interest on Loans
12/31/14
Investment Income
$18,815,666 2,948,349 Other Non-Interest Income
22,508,302 Total Operating Income %Change
$25,361,898 34.79%
3,369,875 14.30%
24,106,262 $44,272,317
Employee Compensation & Benefits
12/31/15
$52,838,035
7.10%
19.35%
$17,275,852 $20,755,934
20.14%
Office Occupancy
2,779,892 3,472,101
24.90%
Office Operations
4,339,522 5,851,628
34.84%
Educational & Promotional
1,360,100 1,866,287
37.22%
Loan Servicing
3,363,788 4,218,893
25.42%
Professional & Outside Services
1,972,701 3,060,330
55.13%
2,365,596 2,806,464
18.64%
Dividends
1,370,446 1,867,823
36.29%
Provision for Loan Losses
(2,172,293)
2,733,668
225.84%
Total Expenses
$32,655,604 $46,633,128
42.80%
$6,204,907
46.59%
Other Operating Expenses
NET INCOME 2,1
$11,616,713
TOTAL SHARES 2015
$1,016,843,661
TOTAL LOANS 2015
$686,059,331
Credit Card Loans
$43,305,420
Regular Shares
$399,354,841
3%
I.R.A. Shares
$25,688,947
13%
14%
31%
11%
Money Market Shares
39%
3%
$145,414,324
Share Certificates
$133,635,798
3%
$23,315,749
19%
Auto Loans
$396,408,308
$312,749,751
Share Drafts
All Other Unsecured
Loans/Lines of Credit
6%
58%
Total 1st Mortgage Real
Estate Loans/Lines of Credit
$127,388,724
Total Other Real Estate
Loans/Lines of Credit
$76,365,940
Total All Other Loans
$19,275,190
15
THE ALTURA TEAM
BOARD OF DIRECTORS
Ofelia Valdez - Yeager
Chairwoman
Mark Balys
Immediate Past Chair
Dr. Ron Pardee
Director
Perry Reed
Director
16
Jacqueline Hall
Vice Chairwoman
Gary Baugh
Director
Norman Perry
Director
Alan “Stretch” Strzemieczny
Director
Gloria Perez
Secretary
Jerry Rivera
Treasurer
Joseph Calderon
Keith Downs
George Price
Barbara Purvis
Director
Director
Dr. Linda Wisher
Director
Director
Director
EXECUTIVE TEAM
Mark Hawkins
Chief Executive Officer
Suzie Kisslan
Senior Vice President/
Chief Lending Officer
Jennifer Binkley
Executive Vice President/
Chief Operations Officer
Kevin Sherrell
Senior Vice President,
Technology
Tommie Shryock
Executive Vice President/
Chief Financial Officer
Debora Sigler
Lois Hoyt
Senior Vice President,
Senior Vice President, Chief
Internal Audit & Compliance Human Resources Officer
SUPERVISORY COMMITTEE
Jennifer Corr
Chairwoman
Alicia Orejel, CPA
Member
Rix Skonberg
Member
Kiyomi Shiota
Member
Robin Wetmore
Member
17
Become a Member to Experience
Altura’s Commitment
Altura Credit Union is a not-for-profit financial
cooperative that has been serving the Inland
Empire since 1957. We are unlike other financial
institutions because we are owned by our Members.
Yes, that means when you join Altura you become
an Owner.
Our strong commitment to Members is
demonstrated in products and services that
are convenient and practical in helping you
achieve your financial dreams. The credit union
motto is “People before Profits,” so any earnings
above our expenses are returned to Members in
the form of higher rates on deposits, lower fees
and lower rates for borrowing money.
Our strong local history is important to who Altura
is, and we remain dedicated to serving our community
as well.
Who’s Eligible to JOIN?
Anyone who lives, works, worships or attends
school in Riverside County, San Diego County and
selected cities in Orange County (Anaheim, Garden
Grove, Irvine and Santa Ana) and selected cities
in San Bernardino County (Rancho Cucamonga,
Ontario and Fontana) is eligible to join. Just visit
our website, AlturaCU.com or call our Member
Services Department at 1-888-883-7228 to join.
18
Donna Miranda
Member since 2000
19
This annual report is dedicated to the memory of
Dr. Linda Wisher
(1947- 2016)
in honor of her many years serving Altura Credit Union
on the Board of Directors.
Riverside | Moreno Valley | Corona | Hemet | Indio | Rancho Mirage | Murrieta
Altura Operations & Technology Center
2847 Campus Parkway, Riverside, CA 92507
888-883-7228 | www.Alturacu.com