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Continuing to Adapt to this Recessionary EconomySome recent reports show a glimmering hope that the national economy is starting to recover. The US government stated the �recession� as officially ended as by the criteria of one quarter of increasing Gross National Product. Unemployment benefit filings are down nationally from a year ago. However, your credit union has not begun to experience this recession�s end or initial recovery. More of AltaOne�s membership continues to demonstrate an inability to timely repay their loans borrowed or the credit lines utilized.
This continued weak total loan repayment and resulting charge to loan reserves situation has required the AltaOne Board of Directors and Management to take deeper countermeasures to preserve the overall financial strength of this organization. These countermeasures include increasing overall loan rates and further strengthening lending criteria, lessening overall share/deposit dividends, and further reducing operational expenses. To further reduce operational expenses, the Board of Directors strategically approved the following actions:
- eliminating the free-standing ATMs at the NAWS (China Lake) Recreational Center and the southern (Ridgecrest) Albertsons in-store;
- closure of the Albertsons in-store mini-member service center in northern Ridgecrest (the external ATM will remain in full service);
- closure of the River Walk Member Service Center in Bakersfield (the external ATM will remain in full service);
- and closure of the Kernville Member Service Center (the external ATM will remain in full service).
Member accounts in the Kernville and the River Walk Member Service Centers will be transferred to the nearby Lake Isabella and the Ming (Bakersfield) Member Service Centers respectively.
These are painful decisions that had to be made for the purpose of restoring the capital level to a well-capitalized position, as per the requirements of our federal credit union regulator, while working to countermeasure the continued loan losses. Your credit union is not insolvent and is not heading for closure or takeover. These announced operational cost reduction actions are to ensure that this financial cooperative remains financially healthy and responsive to our member-owners, today and for the long term future.
Your Board of Directors, the Management and Staff regret the inconvenience to our membership these actions will cause. However, we truly believe this is in the best interests of the entire membership. We, along with our member-owners, eagerly look forward during the coming year to experiencing this recession�s end and that glimmering of an economic recovery.
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