Silver State Schools Credit Union said its financial results for the quarter ending Sept. 30 reflect “sustained progress,” as SSSCU reported its 22nd consecutive quarter of positive earnings.
The CU reported net income of $2.9 million in the third quarter of 2017 and year-to-date earnings of $8.36 million. In 2016, Silver State Schools reported third-quarter earnings of $2.4 million and year-to-date earnings of $10.16 million.
The credit union said its 2017 and 2016 year-to-date earnings included a credit to the provision for loan losses of $255,000 and $2.5 million, respectively.
As of Sept. 30, 2017, SSSCU reported deposits of $674 million, total assets of $740 million and loans of $517 million. It said liquidity “remains strong” at $81 million, and the credit union’s regulatory net worth stands at $64.2 million, equal to 8.67% of total assets (“well capitalized”).
Silver State Schools CU credited “steadily improving net interest margin and asset quality” for its most recent results. Net interest margin ratio increased to 3.08% as of Sept. 30, 2017, from 2.92% on Sept. 30, 2016, which management said reflected an increase in consumer loan portfolio balances and a higher yielding loan portfolio.
In addition, the CU said its interest expense was lower due to a “continued shift” in deposit balances towards lower-rate demand deposits. Due to “favorable credit conditions,” SSSCU’s total allowance for loan losses decreased to $3.4 million, or 0.66% of total loans, as of Sept. 30, 2017, from $7.3 million, or 1.61% of total loans, as of Sept. 30, 2016. During the same time period, delinquent loans as a percentage of total loans decreased to 0.65% from 0.80%.
“As a result of continuing improved credit quality, as well as low delinquency and stability in the underlying collateral valuations in the Las Vegas market, the credit union was not required to fund additional amounts into its Allowance for Loan Losses account during the third quarter,” SSSCU said in a statement.
CEO Scott Arkills said in a statement, “We continue to experience consistent and sustainable growth while improving our financial strength and performance. Our net income earnings were strong for the third quarter of 2017, reflecting strong loan growth and continued improvements in asset quality as well as an improved net interest margin.”
Arkills said the credit union continues to “greatly improve each quarter as a well-capitalized financial institution, and we are pleased with and encouraged by our positive results and financial position. We look forward to building on our successful results over the last 22 quarters, as well as providing best-in-class loan programs, new innovations and improved member services to the educational community throughout the remainder of 2017 and beyond.”
Arkills took over from the retiring Andrew Hunter in 2015.
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 and $14.98 million in 2016.