LAS VEGAS – Silver State Schools CU, the one-time billion-dollar credit union that is fighting through the state’s recession, said yesterday it had a $642,000 net for the third quarter, trimming its year-to-date losses to $1.6 million.
Still, the credit union, 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 credit union had a regulatory net worth of $25.8 million at the end of the third quarter, all of it a $26.4 million emergency loan from ASI.
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.
This year’s figures compare to a $2.8 million loss for last year’s third quarter and a $5.5 million loss for the first nine months of the year.
"We are pleased to report two consecutive quarters of positive earnings, and we hope to be near break even earnings for the year," said Andy Hunter, president of the $626 million credit union, referring to a $1.2 million second quarter net. "Our improving financial results are a function of both a modest improvement in economic conditions and the credit union's efforts to enhance revenues and control costs."
For the first nine months of 2012, delinquencies declined 59% from $59.9 million to $21.3 million. As a result, provision for loan losses has decreased from $16.2 million to $14.9 million.