LAS VEGAS-One Nevada Credit Union reported $590,000 in net income for the first six months of 2012, and a net worth ratio of 9.25%, as the Silver State's economy continues to improve slowly.

The $693-million CU said its mid-year income from operations was more than $7.6 million, with $6.5 million set aside for potential future loan losses and $540,000 set aside for federal deposit insurance.

In the first quarter One Nevada CU reported $345,000 in net income. In 2011 it posted a loss of $4.8 million, including more than $1.7 million in assessments. In 2010 it lost $4.2 million, including more than $1.6 million in assessments.

Bradley Beal, president and CEO, told Credit Union Journal that management "certainly is pleased that we are back in the black, even though it is only marginally."

"The Nevada economy has taken some baby steps in the right direction, and we are grateful for that, but the local economy and the credit union have a long way to go before we can call it a recovery," he said. "Our loan losses have been slowly declining over the last 18 months, but we are at a 4% charge-off level we consider fairly high. We continue to say things are less bad, as charge-offs peaked at about 5.75%. Our delinquencies are coming down, as well, an indication of better times ahead. On June 30 our delinquency rate was rate was right about 2.5% for the portfolio overall, about half of what it was at the peak."

Beal said the Nevada job market is showing "some stability," despite an unemployment rate that remains above 11% after being as high as 14%. He said this improvement has helped stem the flow of members defaulting on loans. "By virtue of the passage of time, we have worked through the loans that were going to bad have gone bad, leaving us with better quality loans."

In the second half Beal said he is hopeful of continued, gradual improvement in the Nevada economy, adding, "If that happens we will see our credit union's performance continue to improve as well."

One Nevada reported it provided more than $40 million in "HARP 2.0" refinance mortgage loans and $10 million in automobile refinance loans to its members in the first six months of the year. More than 6,000 new members joined the credit union during that time. It has also recently introduced a premier checking product with a rewards program, plus remote deposit.

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