RIVERSIDE, Calif. — Altura Credit Union on Friday reported $2.34 million in net income for the first quarter — stretching its streak of consecutive quarters of positive earnings to 16.
The CU reported net income of $3.04 million in Q1 last year. It had $11.6 million in net income for full year 2014.
Altura's net worth ratio as of March 31 was 11.62%, up from 11.22% for the same period last year. The most recent figure is down from 11.96% on Dec. 31, 2014.
Total assets continue to rise, to $799.3 million at the end of Q1 from $757.3 million as of Dec. 31, 2014.
Mark Hawkins, Altura's president and CEO, said the CU is "really pleased" with its first quarter financial results.
"Revenue was up by 4%, loan production has remained strong, the local jobs market continues to stabilize, and home valuations appear to be solid," he said in a statement. "Members are feeling better about the economy and their growing confidence is good for business. But Inland Empire residents are still quite cautious," he 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.
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.
On Friday Altura said lending in Q1 2015 was "strong."
"The credit quality of borrowers is excellent, and consumer loan funding is up by more than 70% versus the same quarter last year," Hawkins said. "We funded about $44 million in loans in Q1. This is not only a big increase over last year, it is the highest loan volume we have seen for the first quarter since 2008. About 85% of this loan volume is for automobile purchases.
"In addition, loan delinquency continues to fall, and at 0.34%, is our lowest in years," Hawkins added.
First Quarter Highlights
In the first quarter, Altura reopened its University Avenue Branch in Riverside. It had been operating as an ATM-only location since in 2011, due to cost-saving measures introduced during the recession. "Returning the University Branch to full operations was important for our members and for us," said Hawkins. "It is a positive sign about the growing strength of our local economy, our members and Altura."
Also during the first quarter, Altura launched a website makeover. The CU said the website's open design makes it easier for members to find the information and services they are seeking.
Altura said it enhanced its WealthBuilder checking account in recent months. The redesigned product gives members the option to merge their certificates, savings and investments into a liquid checking account with a higher yield. With a minimum of 10 monthly debit transactions, the interest rate climbs to 0.93%.
