RIVERSIDE, Calif. – As bad as Altura Credit Union's year-end 2008 numbers are, President/CEO Mark Hawkins said things could be worse. The $890 million Altura finished the year with fewer assets and a negative return for the first time ever; to blame were $14 million in charge offs and $24 million for loan loss provisions.
Despite the losses, Altura increased it capital ratio to 8.49% as of December 31, and before figuring in provisions, finished the year on budget, he said.
"That's why you have capital, reduce your costs and work closely with borrowers who need help," Hawkins said. "As bad as it is, it's as good as it can be."
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Hawkins said he is expecting a tough 12 to 24 months for Southern California's Inland Empire, where home values have lost half their value since the market peaked.
Not only have cultural attitudes toward debt changed, but in areas that have lost considerable home value, homeowners are very discouraged by the disparity between their outstanding mortgage and current home value, he said.
"We can do 2008 again, and we can even do more, but we'd sure rather not have to," he said.
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