Silver State Schools Credit Union, a privately insured $753 million institution based in Las Vegas, announced that it posted its 23rd straight quarter of positive earnings in the fourth quarter of 2017.
Specifically, the credit union said it recorded net income of $2.99 million in the fourth quarter of 2017 and net income of $11.25 million for the year ended December 31, 2017. In 2016, the credit union posted fourth-quarter earnings of $4.82 million and net income of $14.98 million for the year ended December 31, 2016.
However, SSSCU noted that the year-end 2017 and 2016 earnings included a credit to the provision for loan losses of $572,000 and $4.78 million, respectively. Excluding the credits to the provision for loans losses, core earnings for year-end 2017 were $10.8 million, exceeding year-end 2016 core earnings of $10.2 million.
In addition, the credit union said its net interest margin ratio increased from 2.92 percent at December 31, 2016 to 3.12 percent at December 31, 2017, “reflecting an increase in consumer loan portfolio balances and a higher yielding loan portfolio.”
Also, SSSCU noted that interest expense was lower due to “a continued shift in deposit balances towards lower rate demand deposits.”
Moreover, due to “favorable” credit conditions, the total allowance for loan losses decreased from $4.8 million, or 1.01 percent of total loans, at December 31, 2016, to $2.8 million, or 0.53 percent of total loans, at December 31, 2017.
During the same time period, delinquent loans as a percentage of total loans decreased from 0.76 percent to 0.55 percent. 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 fourth quarter of 2017.
Also, as of December 31, 2017, SSSCU reported deposits of $682 million and loans of $524 million. Liquidity, the credit union noted, “remains strong” at $90 million, and its regulatory net worth stands at $67.2 million, or equal to 8.92 percent of total assets.
“We continue to experience consistent and sustainable loan growth, while improving our financial strength and performance,” Scott Arkills, president & CEO, said in a statement. “Our net income earnings continued to trend strongly for the fourth quarter of 2017, reflecting excellent loan growth and continued improvements.”
Arkills added that 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 throughout 2017. We look forward to building on our successful results over the last 23 quarters, as well as providing best-in-class loan programs, new innovations and improved member services to the educational community in 2018 and beyond.”