Two sand state credit unions noted second quarter improvementsthis week.

Riverside, Calif.-based, $693.6 million Altura CU reported asecond quarter net gain of $3.1 million after a first quarter lossof $1.6 million, while the NCUA-run, AEA FCU of Yuma, Ariz. cited ayear-to-date net income of $2.2 million and total assets of $229million, which follows a loss of $31 million in 2010.

Altura CU also announced a net worth ratio of 6.26% for thesecond quarter of 2011 – up from 5.23% for the second quarter of2010. The CU's positive news follows a loss of $4.1 million in thesecond quarter of 2010, layoffs and the closing of four branches. An operating expensereduction of $700,000 contributed to its net worth ratioimprovement, the CU said.

“Our financial results are showing steady improvement,” AlturaCEO Mark Hawkins said. “There are still challenges out there withconsumer loan activity at historic lows, lowered real estate valuesand continued sluggish employment. Yet, we are seeing steadyimprovement and that's a big positive.”

AEA FCU said since the second quarter of 2010, it madereductions in total expenses by 41%, provision for loan lossesexpenses by 68%, occupancy expenses by 30%, miscellaneous operatingexpenses by 56%, compensation expenses by 33% and operating fees by19%.

NCUA Region V Director Elizabeth Whitehead named “streamlinedoperations, improved facility management practices and positiveprogress in business loan delinquency and recoveries” as factors inthe CU's turnaround.

“The priority has always been to restore the credit union's networth and to remain operational for its members,” Whitehead said.“AEA FCU continues its commitment to be a good steward of thecommunities it serves through competitive financial service productlines and community outreach support.”

The NCUA conserved AEA FCU in December 2010. The CU has since been in the media spotlight forreports of significant loan losses and a business loanfraud case in which a former AEA executive was charged for hisrole in a $1 million kickback scheme.