Press
Altura Credit Union reports $4.29 million net income for third quarter
Tenth Consecutive Quarter of Net Gains, YTD Income Tops $12.7 Million
RIVERSIDE, CA (November 6, 2013) — Altura Credit Union today reported net income of $4.29 million on total assets of $689.4 million for the quarter ended Sept. 30, 2013. This compares favorably to net income of $2.08 million on assets of $674.8 million reported for the quarter ended Sept. 30, 2012.
Net income for the third quarter is up from the $3.47 million reported for the quarter ended June 30, 2013. Altura’s net income year-to-date is $12.74 million, compared to $13.17 million for the same period last year.
Altura also reported a Net Worth Ratio of 11.68% for the quarter ended Sept. 30, 2013, up from 10.82% for the second quarter of 2013, and significantly higher than Sept. 30, 2012, when the Net Worth Ratio was 9.41%*.
Signs of a Strengthening Local Economy
“We had an excellent quarter,” said Altura CEO Mark Hawkins. “The Inland Empire economy is clearly improving. It is happening slowly, bit by bit. A grand slam would be nice, but to continue the metaphor, those singles work just as well,” he said.
“The most obvious evidence of improvement is in the increased number of home sales and the higher average home prices we’re seeing,” Hawkins added. “We are also experiencing absolute improvement in consumer loan activity, being driven primarily by automobile loans.”
Hawkins pointed out, “Activity in the real estate sector remains busy, and the combination of continued low interest rates and higher valuations is contributing to our growing ‘wealth-effect’. This is good for Members and good for business.”
Home sales in Riverside County are up 7.6% year-over-year, according to DataQuick, a real estate information service, in its report from Oct. 16, 2013. In addition, the median home price is up 26.60% year over year in Riverside County.
Although home prices still remain below their pre-recession peak, the median price in the Southland has now risen for 18 consecutive months.
“Vehicle loan growth is a strengthening trend we are seeing,” Hawkins said, “It is the result of several factors, including improved consumer confidence and the need to replace an aging vehicle fleet.” In a report last year, R.L. Polk & Co, the market intelligence firm, reported that Americans were keeping their vehicles for a record 71.4 months, or just shy of six years. In addition, Polk also found that the average passenger car on the road is just over 11 years old.
“Comparing third quarter 2013 with the same period last year,” Hawkins said, “our consumer lending is up about 50%, with most of that coming from new and used auto loans. We are seeing a strong start to the fourth quarter as well.”
Altura also reports that loan delinquencies and loan losses continue to decline as the economic recovery strengthens. “More people have gotten their own financial houses in order. They have reduced their debt load and set aside money for emergencies. As jobs and incomes stabilize, consumers are feeling more confident and are showing a willingness to spend again on items like cars and homes,” Hawkins added.
Jobs, Jobs, Jobs
“The only thing hindering a full economic recovery at this point is the lack of jobs,” Hawkins pointed out. “Plus, we really don’t know how the recent federal government shut down and the fight over raising the debt ceiling may continue to effect us; especially since we may see a repeat in just a few more months.”
The good news on jobs is that 14,100 jobs were added in August in San Bernardino and Riverside metro area, according to the most recent figures from the California Employment Development Department. (The September report has been delayed by the federal government shut-down.) However, unemployment remains at 10.4% for August, the most recent figures available.
“Although some amount of uncertainty remains,” Hawkins said, “all in all, this has been a good year for Altura and the community, and things point to 2014 being better than 2013.”
Altura Credit Union is a not-for-profit financial institution owned by its Members. Membership is open to anyone who lives, works, worships or attends school in Riverside and San Diego counties and select cities in San Bernardino and Orange counties. For more information, visit Altura’s website, www.alturacu.com.
Altura is very proud of its 56 years of service to Members in the Inland Empire. Today 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 85,500 members and has $689.4 million in total assets. For more information on Altura, visit our website, www.alturacu.com, or call 1-888-883-7228.
*The Net Worth Ratio is the primary measure of a credit union’s financial strength, as set by the National Credit Union Administration, NCUA. A ratio of 8% or above is considered “well capitalized” by NCUA.