An increase in auto lending activity combined with a reductionin ongoing expenses and set-asides for loan losses has helpedAltura Credit Union double its net income in 2012.

The $655.3 million credit union in Riverside, Calif., reportednet income of $17.49 million for the year ended Dec. 31,2012. This is more than double the net income of $8.43million reported at the end of 2011, according to Altura.

“This is without question the best year in Altura's history,”said Mark Hawkins, CEO of Altura. “Historically, Altura has hadmany good years, but that was not the case during the GreatRecession. So, it is very exciting to be able to report suchpositive results after that period of difficulty.”

Altura implemented a number of steps to reduce its operatingexpenses over the past five years, including closing branchlocations, Hawkins said.

“In 2012, our expenses were the lowest we have recorded since2002. This has not been without a price. Some cutbacks impacted ourmembers, such as closing branch locations. But the end result isthat our financial position today is much stronger than it has everbeen,” he said

The credit union also reported a net worth ratio of 10.36% atthe end of 2012, the highest in its history, according to Altura.The credit union said this is above the 10.22% national average forcredit unions of Altura's size. At the end of 2011, Altura reporteda net worth ratio of 7.84%.

For the year ended Dec. 31, 2012, Altura also reported netincome of $17.49 million on assets of $655.3 million. This iscompared to net income of $8.43 million on assets of $642.9 millionfor the year ended Dec. 31, 2011.

Assets increased 1.9% over 2011, which is the first increase inAltura's asset size since 2007, according to the credit union.Hawkins said this is on target with Altura's 2012 goal of a 2%increase in assets.

Although Altura said it is proud of its 2012 financial results,the news is tempered by an ongoing lack of consumer confidence ingeneral as well as continued slow job growth in the InlandEmpire.

“Property values in this area are coming back prettyaggressively right now and that's good news,” Hawkins said. “Butthe unemployment rate is still significantly above state andnational averages at 11.1%.”

Consumers continue to be concerned about what is happening inthe marketplace; their focus remains on paying down debt, theAltura CEO said.

“So, our lending growth still has a ways to go. Yet, we clearlysee improvement, particularly in auto lending,” Hawkins noted.

Altura said its financial position was also strengthened by thelaunch of several new products in 2012 including Reliance Checking,which was developed to assist individuals who have had financialdifficulties like unpaid accounts and negative history reported toChexSystems.