RIVERSIDE, Calif. — Altura Credit Union reported $3 million in net income during the first quarter of 2014, marking 12 straight quarters of positive earnings, as its assets climbed to $730 million.
In January Altura CU said it had net income of $11.18 million in 2013 — making 2011-13 the best three-year period in the credit union's history.
In the first quarter of 2013 the CU posted $4.9 million in net income.
Its net worth ratio at the end of the first quarter of this year was 11.22% ("well capitalized"), up from the same period last year when it reported 10.13% ("well capitalized").
"We had a very good first quarter that continues the trend we have seen for the past three years," Mark Hawkins, Altura's president and CEO, said in a statement on Monday. "We have reported 12 consecutive quarters of net gains, while the local economy continues slowly toward complete recovery. A still higher-than average local unemployment rate generates ongoing hesitancy in consumers about borrowing, which is a major source of Altura's revenue."
Altura reported the credit quality of its borrowers is "excellent" and loan delinquencies are the lowest in nearly seven years. Delinquent loans declined to 0.76% compared to 1.23% for the same period in 2013.
With an improving economy, Altura said it added new employees and put more of its budget into operations. Overall costs were 2.5% above budget projections, which Hawkins said affected the bottom line in the first three months of the year.
Helping Distressed Members
Altura said it has introduced a series of products to help people rebuild their credit scores and get their financial lives back on track in the wake of the financial crisis.
"These products are designed to assist people with no credit history or a damaged credit history," Hawkins said. "By helping them rebuild their credit score, they can take advantage of today's low rates."
Looking forward, Altura said it continues to make investments in products and services. A new mobile banking app, set to launch in late May, will add remote deposit capture and a loan function to submit applications, receive approval and confirm funding, all through a mobile device.
Altura, along with most other financial institutions in the "Inland Empire" region of Southern California, 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'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.
