LAS VEGAS – Silver State Schools CU, the troubled one-time $1 billion credit union, reported a second quarter net of $1.2 million, but still had a loss of $2.3 million for the first six months of the year.
But Silver State Schools, which lost $80.4 million from 2008 through 2011, has eaten through all of its net worth and remains operating solely because of emergency loans from its private deposit insurer, ASI Inc., of Dublin, Ohio. The state regulator, which has jurisdiction over the state chartered, privately insured credit union, is allowing Silver State Schools to count the loans as regulatory capital, and thus net worth.
Regulatory capital at June 30 was $25.1 million, all of it emergency loans provided to it from ASI. ASI has loaned Silver State Schools a total of $26.4 million.
The privately insured credit union attributed the improvement in second quarter financials to both external and internal factors. “Most significantly, we are experiencing gradually improving economic conditions in the Las Vegas valley, particularly as regards home prices,” said Andy Hunter, the former CEO of Patelco CU brought in last year to work out the now-$645 million credit union. “Although our results for the second quarter include a $200,000 non-recurring gain, our ongoing operating results are benefiting from improvements in our internal loss mitigation efforts and continued expense control.”