RIVERSIDE, Calif. (7/29/13)--Altura CU in Riverside, Calif., Thursday reported net income of $3.47 million on total assets of $704.6 million for the second quarter. It is Altura's ninth consecutive quarter of net gain.
"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."
Net income for the first half of 2013 was $8.45 million, compared with $11.07 million for the same period in 2012. Altura also reported a net worth ratio of 10.82% for the second quarter, up from 8.69% for the same period last year. That figure is also up from the first quarter of 2013, when Altura reported a net worth ratio of 10.13%.
Altura is 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%, Altura said. Although still above national and state unemployment rates, the current figure is an improvement over the 15.4% reported at the height of the recession in July 2010.
The Great Recession hit the Inland Empire hard and impacted Altura's financials. Since then, the credit union has been steadily strengthening.
"The market is healing. In fact from a credit quality perspective, you could even say it has healed," Hawkins said. "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.
"However, people in our community remain understandably cautious," he added. "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."
Revenue growth is up compared to projections, particularly for non-interest income and investment income, Hawkins said.
"Members' discretionary spending has been steady, and they are using their debit and credit cards more," he added. "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."