A Message From Mark Hawkins, Altura Credit Union CEO
Dear Members,
Last week, we posted our first quarter financial results, and I’m happy to report the strong improvement begun last year continues. Altura Credit Union reported net income of $7.03 million on assets of $708.2 million for the quarter ended March 30, 2012. The results for first quarter 2012 mark a substantial turnaround compared to the same period last year when Altura reported a loss of $1.63 million on assets of $724.8 million. What a difference a year makes!
This is our fourth straight quarter of strong bottom-line performance, and the best three-month period in our history. We believe Altura has bounced back, but unfortunately, the larger market, especially in the Inland Empire, continues to be weak. Yes, home foreclosures are dropping and the housing market is stabilizing, but consumer confidence remains weak and until regional unemployment recovers, confidence will lag. Such weakness continues to impact our ability to make loans and creates an added drag on revenue creation.
In view of such issues, we’ve made significant changes to our operating expense structure over the past four years, applying a steady “behind the scenes” approach. Our staff count is down more than 24% since 2008, and our overall cost of operation is lower by 47% over the same period. Such cost reductions have played a key role in our sharp recovery. Additionally, we have also seen great improvement in the rate of delinquency on Member loans and in the rate of loss, too. The continued focus of Members to pay down debt and reorder household finances is the right thing to do in troubling times. We have been heartened by the slow but steady recovery we have witnessed in Member finances.
Last year, we made the difficult decision to close our branch inside the Moreno Valley Wal-Mart and to convert three other locations to all-electronic branches as part of our cost savings moves.
All this sacrifice is now paying off. This quarter, in addition to strong net income, we have reported a Net Worth Ratio of 8.10%, which is considered “well capitalized” by the National Credit Union Administration (NCUA). This is more than 250 basis points higher than the same quarter last year when Altura’s Net Worth Ratio was reported at 5.56%. It’s also higher than year-end 2011, when Altura reported a Net Worth Ratio of 7.84%.
And, with these first quarter results, we re-staffed our Murrieta branch location on April 18, returning it to full service for our Members. The response thus far has been overwhelmingly positive. So much so, in fact, that we’re having a little celebration at the branch on May 16. We invite all of you to join us!
Altura is very proud of our 56 years of service to its Members in the Inland Empire. The past few years have been very difficult for all of us. Although a full recovery has yet to take root in the Inland Empire, we’re getting close, and importantly, we’re getting there together. Your confidence and faith in us and in each other has been a sustaining force.
For all of us at Altura, thank you for your support.
Mark Hawkins, CEO
