RIVERSIDE, Calif. (4/30/13)--Altura CU Friday reported net income of $4.97 million on total assets of $718.14 million for the quarter ended March 30--the credit union's eighth consecutive quarter of net gains.
Riverside, Calif.-based Altura CU also reported a net worth ratio of 10.13%, up from the same period last year when its net worth ratio was 8.10%.
"Our current levels of financial strength are the highest we have experienced in our nearly 57 years of operation," said Mark Hawkins, Altura CEO.
"However, although we are clearly seeing economic improvements nationally and regionally, our immediate marketplace continues to face challenges," said Hawkins. "Unemployment still hovers at 10%, which is hampering the area's full recovery. Fortunately, the housing market is showing substantial improvement with fewer foreclosures, stronger sales and rising prices."
Altura's first-quarter financial results for 2013 are down from the same period last year when it reported net income of $7.03 million on assets of $708.2 million.
In early 2011, Altura had to close multiple branches because the local economy in the Inland Empire region was hard hit by the recession, with an unemployment rate of 15% at one point and record home foreclosures (News Now May 9, 2012).
Altura's numbers for the quarter reflect the improvements seen throughout its marketplace, the credit union said. Delinquent loans declined to 1.23%, compared with 2.04% for the first quarter of 2012. Net charge offs declined to 0.81%, "the lowest we've seen since the Great Recession began," and below 2012's rate of 2.26%, Hawkins said.
However, members still worry about job security, which hampers loan growth, Hawkins said. To promote lending, Altura recently launched a monthly series of free breakfast workshops for members and the public on topics such as building a better budget, understanding credit and resume writing tips.