LAS VEGAS Ailing Silver State Schools CU reported it broke into the black for the fourth quarter to the tune of $961,000, helping cut losses for the full year to just $670,000, down from loss of $8.4 million in 2011.
The one-time $1 billion credit union, said it is a variety of factors contributing to its improving condition, mainly a $33 million decline in delinquencies, allowing for a 27% reduction in loan loss provisions for the year to $16.4 million.
Still, Silver State, which now claims $622 million in assets, continues to operate on assistance from its private deposit insurer, American Share Insurance. Almost all of the credit union’s $26.7 million net worth at Dec. 31, was emergency assistance provided by ASI, meaning the credit union has now reserves of its own.
Silver State, which lost $72 million for 2009 and 2010, has been operating with significant assistance from ASI, which now amounts to $26.4 million. That means without the ASI assistance, the $622 million credit union has only $300,000 of its own reserves.
“All in all we have made some significant improvement in 2012,” said Andy Hunter, president of Silver State. “There is no doubt that Nevada’s improving economic outlook has positively impacted the financial situation of the credit union, resulting in lower loan losses over the course of the year.”
“In 2012 we saw exceptional improvement in our financial results over 2011, and we are optimistic that progress will continue in 2013,” said Hunter.