Silver State Schools Credit Union on Wednesday said its financial results for the quarter ending March 31 “reflect sustained progress,” as SSSCU reported its 20th consecutive quarter of positive earnings.
The CU reported net income of $2.8 million in the first quarter of 2017, compared to net income of $2.74 million for the first quarter of 2016, and $4.82 million for the fourth quarter of 2016.
Silver State Schools said its first quarter 2017 earnings included a credit to the provision for loan losses of $255,000, compared to $0 for the first quarter of 2016 and $2.28 million for the fourth quarter of 2016.
As of March 31, 2017, SSSCU reports deposits of $672 million, total assets of $731 million, and loans of $474 million. It said liquidity “remains strong” at $113 million, and the credit union’s regulatory net worth stands at $58.6 million, equal to 8.02 percent of total assets.
Silver State Schools said “consistently improving” asset quality “contributed significantly” to the credit union’s most recent results. Other real estate owned properties decreased from $896,000 on March 31, 2016, to $627,000 on March 31, 2017, a reduction of $269,000 or 30% over the period. During the same time period, delinquent loans as a percentage of total loans decreased from 0.66 percent to 0.61 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 CU noted it was not required to fund additional amounts into its Allowance for Loan Losses account during the first quarter.
CEO Scott Arkills said in a statement, “Our financial performance in the first quarter of 2017 has been excellent as the credit union continues to improve its capital position and credit quality. Our net income earnings were excellent for the first quarter of 2017, and were further improved with the additional benefit we recognized from the reduction of the Allowance for Loan Losses account.”
According to Arkills, the credit union, “Continues to rebound in robust fashion and we are pleased with and encouraged by our positive results. We look forward to building on our successful results over the last 20 quarters, as well as continuing our progress toward providing best-in-class loan programs, new innovations and improved member services to the educational community throughout 2017 and beyond. As always, we are very grateful for the incredible loyalty and patronage of our members, as well as the dedication and support we receive from our board of directors and staff.”
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.