For first half of the year, net income hits $8.45 million
RIVERSIDE, CA (July 25, 2013) -- Altura Credit Union today reported net income of $3.47 million on total assets of $704.6 million for the quarter ended June 30, 2013. It is Altura’s ninth consecutive quarter of net gain. Net income for the first half of 2013 was $8.45 million, compared to $11.07 million for the same period in 2012.
Altura also reported a Net Worth Ratio of 10.82% for the second quarter, up significantly from 8.69% for the same period last year. This figure is also up from the first quarter of 2013, when Altura reported a Net Worth Ratio of 10.13%.
“We continue to see slow and steady improvement in the local economy and that has a positive impact on Altura’s bottom line,” said Altura CEO Mark Hawkins. “We had a great second quarter this year, the second best total in our history. Things are on a slow, yet improving, trajectory.”
Altura is headquartered in Riverside, Calif., part of the Inland Empire, an area about 60 miles east of Los Angeles. The Inland Empire economy continues to improve at a slow, but steady pace. Unemployment is still the biggest drag on the local economy, holding at 10.2%. Although still above national and state unemployment rates, the current figure is a dramatic improvement over the 15.4% reported at the height of the recession in July 2010.
“The market is healing. In fact from a credit quality perspective, you could even say it has healed,” Hawkins pointed out. “The number of delinquent loans is down substantially, enabling us to reduce the amount set aside for loan loss provisions from $25.2 million in June 2012 to $15.7 million this year,” Hawkins added.
“However, people in our community remain understandably cautious,” he said. “Their wariness is holding back loan growth, a major contributor to Altura’s income. As the market continues to stabilize, we hope to see more job growth and marketplace productivity.”
Market stabilization is evidenced in Altura’s second quarter figures. Hawkins reports that for the first time in nearly five years, the credit union has seen month over month increases in outstanding loans. Auto lending, for both new and used vehicles, is the major driver of this growth. In addition, with improving home values, home equity loans are making a comeback as well.
Revenue growth is up compared to projections, particularly for non-interest income and investment income, according to Hawkins. “Member discretionary spending has been steady, and they are using their debit and credit cards more. As a result we have seen an uptick in interchange income. With economic improvements, people are also investing more, boosting that income stream as well,” he said.
Altura Credit Union is a not-for-profit financial institution owned by its Members. Membership is open to anyone who lives, works, worships or attends school in Riverside and San Diego counties and select cities in San Bernardino and Orange counties. For more information, visit Altura’s website, www.alturacu.com.
Altura is very proud of its 56 years of service to Members in the Inland Empire. Today Altura is open to anyone who lives, works, attends school or worships in Riverside and San Diego counties, as well as selected cities in Orange and San Bernardino counties. Altura Credit Union, www.alturacu.com, has been recognized with the California Award for Performance Excellence (CAPE), the state’s equivalent of the Malcolm Baldrige National Quality Award. Today, Altura Credit Union 86,500 members and has $704.6 million in total assets. For more information on Altura, visit our website, www.alturacu.com, or call 1-888-883-7228.