Altura CU Reports Nearly $6 Million in Net Income for 2015

RIVERSIDE, Calif. – Altura Credit Union on Thursday reported net income of $5.95 million on total assets of nearly $1.2 billion as of Dec. 31.

The credit union had net income of $11.6 million for the year ended Dec. 31, 2014.

One of the highlights of 2015 was Altura completing its merger with Visterra Credit Union in the third quarter. Prior to the merger, Visterra Credit Union, headquartered in Moreno Valley, Calif., had $335.6 million in assets and approximately 34,000 members. Altura Credit Union had $757.3 million in assets and nearly 84,000 members. Altura and Visterra already were the two largest CUs in Riverside County prior to combining.

The CU has an ongoing streak of quarters with positive net income – which reached 17 in the second quarter of 2015, but it cautioned in its third quarter earnings release that financial metrics going forward are not directly comparable to results from previous quarters due to the merger with Visterra.

"Since our August 2015 merger, we have been systematically combining Altura's and Visterra's operations," Mark Hawkins CEO of Altura CU, said in a statement. "Net income is down somewhat year-over-year, reflecting continuing challenges in the local economy and merger-related expenses, which were anticipated. The final piece of the merger is the consolidation of Altura's computer operations."

Altura reported its total revenue grew by 44.5%, or $4.9 million, for 2015 compared to 2014.

2015 was Altura's fifth consecutive year of positive financial performance as the post-recession recovery continues. The CU ended 2015 with a net worth ratio of 10.64%. The CU acknowledged the figure is down from last year's ratio of 11.96%, but said the change is due almost entirely to the boost in total assets as a result of the merger. Altura noted it remains "comfortably above" NCUA's standard for "well capitalized."

Loan Balances Up

"The ongoing strength of our consumer lending reflects the continued rebuilding of our local economy," Hawkins said. "Lending is the backbone of our income, and the renewed vigor we are experiencing in our consumer lending is welcome evidence of improvement."

Altura said its total loan balances reached $686 million on Dec. 31, up $10 million since the end the third quarter. Member loan balances are up 67% over last year's unmerged total.

With the pending completion of the core conversion, Hawkins said he anticipates additional opportunities for Altura. "Our focus has always been on providing our members with the products and services they need at prices that will help them achieve their financial goals. As a billion-dollar institution, Altura is now operating from a position of added strength in a more competitive marketplace. We plan to open new doors and new opportunities to assist our members and, by extension, our local communities."

"We are excited about the new year," Hawkins added.

Digging Out

Altura, along with every other financial institution in the "Inland Empire" region of Southern California, east of Los Angeles, suffered terrible losses during the recession due to widespread unemployment and plummeting home values. At the end of 2007 it had more than $1 billion in assets, but then lost $13.7 million in 2008, $20.1 million in 2009 and $5.8 million in 2010.

The turnaround began in 2011, when it reported net income of $8.4 million after $1.5 million in assessments. In 2012 Altura had net income of $17.4 million after paying $589,000 in assessments.

Altura CU said it had net income of $11.18 million in 2013 — making 2011-2013 the best three-year period in the credit union's history.

It had $11.6 million in net income for full year 2014.

Altura's net worth ratio was 8.13% at the end of 2007, but dipped to as low as 5.61% ("undercapitalized") in December 2009 before rebounding.