AEA FCU, Altura CU Report Second Quarter Profits
Two sand state credit unions noted second quarter improvements this week.
Riverside, Calif.-based, $693.6 million Altura CU reported a second quarter net gain of $3.1 million after a first quarter loss of $1.6 million, while the NCUA-run, AEA FCU of Yuma, Ariz. cited a year-to-date net income of $2.2 million and total assets of $229 million, which follows a loss of $31 million in 2010.
Altura CU also announced a net worth ratio of 6.26% for the second quarter of 2011 – up from 5.23% for the second quarter of 2010. The CU’s positive news follows a loss of $4.1 million in the second quarter of 2010, layoffs and the closing of four branches. An operating expense reduction of $700,000 contributed to its net worth ratio improvement, the CU said.
“Our financial results are showing steady improvement,” Altura CEO Mark Hawkins said. “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.”
AEA FCU said since the second quarter of 2010, it made reductions in total expenses by 41%, provision for loan losses expenses by 68%, occupancy expenses by 30%, miscellaneous operating expenses by 56%, compensation expenses by 33% and operating fees by 19%.
NCUA Region V Director Elizabeth Whitehead named “streamlined operations, improved facility management practices and positive progress in business loan delinquency and recoveries” as factors in the CU’s turnaround.
“The priority has always been to restore the credit union’s net worth and to remain operational for its members,” Whitehead said. “AEA FCU continues its commitment to be a good steward of the communities it serves through competitive financial service product lines and community outreach support.”
The NCUA conserved AEA FCU in December 2010. The CU has since been in the media spotlight for reports of significant loan losses and a business loan fraud case in which a former AEA executive was charged for his role in a $1 million kickback scheme.