Altura Credit Union, which is based in Riverside, reported an $8.43 million profit for 2011.
The amount signifies an improvement over the credit union’s $5.8 million loss in 2010.
“After the economic turmoil of the past few years, 2011 was our best year since 2006,” Altura Credit Union CEO Mark Hawkins said in a statement. “Although we continued to deal with a difficult economy, 2011 was the year in which we finally saw the marketplace begin to firm up. Unemployment is settling down and foreclosures and delinquencies have eased substantially.”
Altura Credit Union ended 2011 with a 7.84 percent net worth ratio, well above the 5.81 percent ratio at the end of 2010. The National Credit Union Administration considers an institution with a ratio of at least 7 percent to be well capitalized.
Altura Credit Union reported a $3.37 million profit for the quarter ending Sept. 30.
The amount signifies an increase of about $200,000 from the year’s previous quarter and a significant improvement from the Riverside-based credit union’s condition of one year prior.
After the third quarter of 2010, Altura Credit Union reported a $1.5 million loss.
Improved financial conditions have also made it possible for Altura to reduce its loan loss provisions.
“The local unemployment rate has begun to drop. Home foreclosures are down, although we are seeing more ‘short sales’,” Altura CEO Mark Hawkins said in a statement. “People are adjusting to the new economic reality and are focusing on paying down debt. As a result, consumer loan activity remains sluggish. This is an ongoing challenge for all financial institutions, and we are no exception,” he added. “Yet, there is a lot to be positive about right now.”
Altura’s reported capital ratio is 6.89 percent, which the government considers to be adequately capitalized.