Silver State Schools Credit Union on Monday said it has posted 24 straight quarters of positive earnings – including $2.19 million in the first quarter of 2018.
As of March 31, the Las Vegas-based CU reported deposits of $701 million, total assets of $774 million and loans of $540 million. It said liquidity “remains strong” at $98 million, while the credit union’s regulatory net worth stands at $69.4 million, equal to 8.97% of total assets.
SSSCU noted it generated net income of $2.80 million during the first quarter of 2017, and $2.99 million in the fourth quarter of 2017.
SSSCU said its first quarter 2018 earnings included a charge to the provision for loan losses of $337,000, compared to credits to the provision for loan losses of $255,000 for the first quarter of 2017 and $317,000 for the fourth quarter of 2017, respectively. Excluding the charge and credits to the provision for loan losses, core earnings for the first quarter of 2018 was $2.52 million, as compared to $2.54 million for the first quarter of 2017, and $2.67 million for the fourth quarter of 2017.
These results reflect “consistent and positive trends” as part of its “sustained growth and progress,” the credit union said in a statement. SSSCU said “steadily improving” net interest margin, consumer loan growth and overall asset quality contributed to the most recent results.
The credit union said its net interest margin ratio increased from 2.98 percent as of March 31, 2017, to 3.24 percent as of March 31, 2018, which it said reflected an increase in consumer loan portfolio balances and a higher yielding loan portfolio. In addition, it reported interest expense was lower due to a continued shift in deposit balances toward lower-rate demand deposits.
Due to “favorable credit conditions,” SSSCU said its total allowance for loan losses decreased from $4.3 million (or 0.91 percent of total loans as of March 31, 2017) to $2.7 million (or 0.51 percent of total loans as of March 31, 2018). During the same time period, delinquent loans as a percentage of total loans decreased from 0.61 percent to 0.39 percent.
Scott Arkills, SSSCU’s president and CEO, said, “We continue to experience excellent and sustainable loan growth, while improving our financial strength and asset quality performance. Our net income earnings continued to trend strongly for the first quarter of 2018, reflecting strong loan growth and demand, continued improvements in asset quality, as well as an improved net interest margin.
“The credit union continues to progress and improve each quarter as a well-capitalized financial institution, and we are pleased with and encouraged by our positive results and financial position,” Arkills continued. “We look forward to building on our successful results over the last 24 quarters, as well as providing best-in-class loan programs, new innovations, and improved member services to the educational community throughout 2018 and beyond.”
Arkills took over from the retiring Andrew Hunter in 2015.
Digging out in Southern Nevada
The CU was battered during the recession and endured the painfully slow recovery in Southern Nevada. Silver State Schools had $1 billion in assets prior to the financial crisis, but plummeted to $622 million at the end of 2012. The credit union is privately insured by American Share Insurance.
In 2009, Silver State Schools lost $50.8 million, followed by a loss of $21.4 million in 2010 and $8.4 million in 2011. After a much smaller net loss of $670,000 in 2012, the CU reported $13.55 million in net income for full year 2013, including a one-time, non-operating gain of $5 million during the third quarter. It earned $13.2 million in 2014, $14.69 million in 2015, $14.98 million in 2016, $11.35 million in 2017 and $11.35 million in 2018.