Alabama One Improves Q1 Assets, Takes Income Hit
The $613 million Alabama One Credit Union saw its assets rise by $11 million over the close of last year as members increased checking and share accounts.
The troubled Tuscaloosa-based credit union ended last year with assets of $602 million.
According to the Alabama One's financial performance reports posted on the NCUA's website, share draft accounts moved up to almost $72 million as of March 31, where they had been $69.3 million as of December 2014. Likewise share accounts moved from $124.4 million in 2014 to $136.2 million in the first quarter of 2015.
CEO John Dee Carruth attributed the increase to continued confidence from the credit union’s members.
“We are blessed with a community that recognizes that we are financially strong and well managed,” Carruth wrote in an email. “Thank you for noticing the growth.”
Other positives in the credit union’s balance sheet included a reduction in REO from 19 properties valued at $8.9 million to 17 properties valued at $6.5 million.
There was also a reduction in the allowance for loan losses from $6.4 million at the end of 2014 to $5.6 million in the first quarter.
However, in an April 2 cease and desist order, the Alabama Credit Union Administration demanded Alabama One write down all assets considered a loss and 50% of assets the category of doubtful. The credit union went to court seeking an injunction to void the order, arguing that ACUA Administrator Sarah Moore is not lawfully holding her office.
Negatives in the report included negative income of $1.1 million for the quarter, putting it on track to see $4.4 million in negative income for this year. The credit union closed out 2014 with a little more than one million dollars in negative income.
Alabama One also saw its net worth slide further, from 10.4% at the close of 2014 to 10.04% in the first quarter. The credit union's net worth was 11.52% in the first quarter of 2014.
Additionally, the credit union spent $2.6 million in 2014 in professional and outside services and $744,000 on those services in the first quarter. At that pace Alabama One will spend slightly more than $3 million on those services in 2015.