Altura Credit Union Reports 2010 Financial Results; Quarterly Results Best Since 2006

Contact: Maya Salem, 951.571.5370, msalem@alturacu.com
(Carol Kramer, 818.352.0278, is on jury duty beginning 1/25/11)

(Riverside, Calif.) Jan. 25, 2011 – Altura Credit Union today reported net income of $2.9 million for the three months ended Dec. 31, 2010.  “Our fourth quarter 2010 results are the best we have reported since the third quarter of 2006,” said Altura CEO Mark Hawkins.  
 
Altura also saw an improvement in its Net Worth Ratio to 6.18% for the year ended Dec. 31, 2010. This is up from 2009’s year-end Net Worth* of 5.61% and Net Worth of 4.96% reported for first quarter 2010.  (The National Credit Union, NCUA, considers 7% to be “well-capitalized.”)
 
For the year ended Dec. 31, 2010, Altura reported $726.8 million in total assets and a net loss of $2.8 million.  (These figures are unaudited.)  This compares to total assets of $860.1 million and a net loss of $20.1 million (revised) for the year ended Dec. 31, 2009. (Altura’s net loss for 2009 was revised downward from $10.4 million following its independent audit and subsequent increases to fund the Allowance for Loan and Lease Losses.)
 
Membership in the credit union remains unchanged at 110,000 Members.
 
“We are pleased with the improvements in our net income and net worth ratio,” said Hawkins. “Clearly, there are no quick fixes in a marketplace that still is troubled. However, we are seeing conditions stabilize.  We aren’t seeing job losses at the same pace as last year and home values aren’t declining at the same pace as last year, which is a relative improvement.” In these conditions, loan demand remains low, resulting in reduced emphasis on growing assets.  “We just don’t need the addition of shares right now with loan demand remaining at historic lows,” Hawkins added.
 
Over the past three years, Altura has focused on reducing operating expenses. Hawkins reports that operating costs for December 2010 were down approximately $600,000 versus the same month in 2009.  Year over year, Altura’s costs of operation are down more than $2 million.
 
“We have closed underperforming branch locations, reduced staff and renegotiated various contracts to significantly lower our operating costs while still focusing on delivering the products and services our Members need,” Hawkins said.  Such cost-cutting measures continued this month with the merger of Altura’s two Hemet branch locations into a single office.
 
“This last quarter was very strong for us, and December was above our projections,” Hawkins said. “The Inland Empire appears to be stabilizing following a couple of very difficult years.  Throughout this year Altura will remain focused on the needs of our Members and taking the steps to ensure Altura is well-positioned to meet those needs now and in the future.”
 
As the largest locally owned and operated credit union in the Inland Empire, Altura is open to anyone who lives, works, attends school or worships in Riverside and San Diego counties, as well as selected cities in Orange and San Bernardino counties. Altura Credit Union, www.alturacu.com, has been recognized with the California Award for Performance Excellence (CAPE), the state’s equivalent of the Malcolm Baldrige National Quality Award. Today, Altura Credit Union serves more than 110,000 members and has $726 million in total assets.

*The National Credit Union Administration (NCUA) defines net worth ratio as the sum of retained earnings, paid-in capital, and membership capital divided by the moving daily average net assets. …retained earnings does not include the allowance for loan and lease losses account, accumulated unrealized gains and losses on available for sale securities, or other comprehensive income items.
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Carol Kramer for Altura Credit Union
Kramer Communications
818-352-0278
kramerco@ca.rr.com

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