Silver State Schools Credit Union on Tuesday said it has posted 25 straight quarters of positive earnings – including $2.55 million in the second quarter of 2018 – part of a greater trend it described as “sustained positive results.”
As of June 30, the Las Vegas-based CU reported deposits of $705 million, total assets of $781 million and loans of $558 million. It said liquidity “remains strong” at $83 million, while the credit union’s regulatory net worth stands at $71.9 million, equal to 9.21% of total assets.
SSSCU reported its year-to-date earnings were $4.74 million. Last year, it had net income of $2.66 million in Q2 2017 and first-half earnings of $5.46 million.
The credit union noted its year-to-date earnings included a charge to the provision for loan losses of $703,000 in 2018 versus a credit to the provision for loan losses of $255,000 in 2017. Excluding the charge and credits to the provision for loan losses, core year-to-date earnings for 2018 were $5.44 million, as compared to $5.20 million for 2017.
SSSCU said “steadily improving” net interest margin, consumer loan growth and asset quality contributed to the most recent results.
The credit union said its net interest margin ratio increased from 3.01 percent as of June 30, 2017, to 3.33 percent as of June 30, 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 $3.8 million (or 0.76 percent of total loans as of June 30, 2017) to $2.8 million (or 0.50 percent of total loans as of June 30, 2018). During the same time period, delinquent loans as a percentage of total loans decreased from 0.61 percent to 0.29 percent.
Scott Arkills, SSSCU’s president and CEO, said in a statement, “We continue to experience consistent and sustainable loan growth, while improving our financial strength and performance. Our net income earnings continued to trend strongly for the second quarter of 2018, reflecting excellent growth and continued improvements in asset quality as well as an improved net interest margin. 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 current financial position. We look forward to building on to this strong base and serving our members with best-in-class service and financial solutions.”
Arkills noted Silver State Schools Credit Union recently was recognized by Forbes Magazine as the Best-In-State Credit Union for Nevada. This award was based on a survey of more than 25,000 customers in the U.S. for their opinions on current and former bank relationships. Only 145 credit unions and 124 banks nationwide received this distinction. The credit unions and banks were rated on overall recommendations and satisfaction, as well as five subdimensions: trust, terms and conditions, branch services, digital services, and financial advice.
“This recognition is a testament to the excellent service we provide our members that support our mission and core values,” said Arkills. “We look forward to building on our successful results over the last 25 quarters, as well as providing extensive loan programs, new innovations and improved member services to the educational community in 2018 and beyond. As always, we are very grateful for the incredible loyalty of our faithful members, as well as to the dedication and support of our excellent staff, management and board of directors.”
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 and $11.35 million in 2017.
Silver State Schools Credit Union was founded in 1951. Today it serves more than 53,000 members of the educational community and their families in Nevada with eight branches throughout the Las Vegas Valley.