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CU System
Altura CUs net-worth ratio climbs to 6.26
RIVERSIDE, Calif. (8/5/11)--Altura CU Tuesday reported net income of $3.1 million on total assets of $693.6 million for the quarter ended June 30, and also that its net-worth ratio climbed to 6.26%. The second-quarter net income of $3.1 million is ahead of Altura’s 2011 budget projection, and an improvement over a $1.6 million loss for the first quarter ended March 30. Year-to-date net income is $1.5 million. Altura CU is located in California’s Inland Empire area in Riverside, Calif., which was hard hit by the recession and experienced job losses and declining home values (News Now Jan. 27). “Our financial results are showing steady improvement,” said Altura CEO Mark Hawkins. “The results we are seeing are good for Altura and good for the [local area]. There are still challenges out there with consumer loan activity at historic lows, lowered real estate values and continued sluggish employment. Yet, we are seeing steady improvement and that’s a big positive.” Second-quarter results are a significant improvement over the same period last year, when Altura reported a loss of $4.1 million on assets of $832 million. For the second quarter, Altura also reported improvement in its net-worth ratio, boosting that important ratio to 6.26%, which is considered “adequately capitalized” by the National Credit Union Administration. This compares with a ratio of 5.56% for the quarter ended March 30 and 5.23% for the quarter ended June 30, 2010. Contributing to Altura’s net-worth-ratio improvement is ongoing expense reduction. Operating expenses are down $700,000 since the start of the year, Altura reported. The credit union has reduced its operating expenses significantly during the past three years, in part by closing underperforming branch locations and converting others to all-electronic branches. “The local market is clearly improving, but it’s slow,” Hawkins said. “We feel good about where our financials are, as this process winds its way out. We have good momentum, and we expect the remainder of the year to be positive.”


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