LAS VEGAS — The winning streaks continued in the second quarter for $572 million Clark County Credit Union and $667 million Silver State Schools CU, both of which reported profitable numbers this week.
Clark County CU on Thursday said the "strong performance" shown in its Q2 figures were part of a "long string of profitable quarterly reports." The CU had average monthly earnings of $1.1 million for a total of $6.62 million for the year to date.
CCCU said its growth was enabled in part by a continuation of reduced loan loss provisions, which it said is reflective of improved commercial and consumer conditions in its market. Growth also played a factor, with the credit union reporting a 9.26% asset growth ratio, boosted by growing membership numbers and borrowing levels.
Wayne Tew, Clark County CU's president and CEO, said in a prepared statement, "We had such a strong year in 2014; I was very satisfied with our performance. Our results to date for 2015 ices the cake. CCCU's second quarter reflects continued strength and our focus on the core essentials of long-term growth."
Tew said he was "especially pleased" with CCCU's 2.40% YTD return on assets ratio and net worth at 11.95%.
The credit union's previous year-end showed an average of $1 million per month in net growth for the 12-month period.
According to Mark Andrews, CCCU's chief marketing officer, the credit union has seen an "impressive" membership growth trend with a reported year-to-date increase of 8.5%.
"We have had good results based on a deliberate shift in our marketing strategy and direction over the last several months," Andrews explained. "In additional, we have increased our service offerings by providing greater access and other conveniences that have enhanced our member-owners' banking experience. The result has brought us above 35,000 members, and we are confident in our ability to meet the goal of 37,000 members by the end of 2015."
Tew, who retires from his post in August, said he expects to see CCCU issue a "strong" bonus dividend again in January 2016.
As reported first in CU Journal, the credit union's board of directors recently selected Matthew Kershaw, CCCU's chief commercial officer, as successor to Tew. Kershaw will assume the role of president and CEO in late August.
Founded in 1951, Clark County CU serves 35,455 Clark County employees, City of Henderson and City of Las Vegas employees, medical professionals, members of Nevada Public Radio (KNPR), and numerous selected employer groups through five branches throughout Southern Nevada.
13 Consecutive Quarters
Silver State Schools Credit Union on Friday and its financial results for the quarter ending June 30 reveal "continued progress." SSSCU reported its 13th consecutive quarter of positive earnings, with Q2 net income of $4.96 million.
It year-to-date net income was $7.84 million.
In 2014, the credit union reported Q2 earnings of $5.01 million and January-to-June earnings of $7.51 million.
The 2015 and 2014 earnings included a credit to the provision for loan losses of $2.6 million and $2.4 million, respectively, the CU noted, thanks to a decline in delinquent loans. Delinquencies fell from $4.9 million as of March 31, 2015, to $4.4 million on June 30, 2015.
According to a Friday press release from SSSCU, the improvement in the credit profile of its borrowers and the increase in value of the underlying collateral on mortgage loans allowed SSSCU to reduce its Allowance for Loan Losses account from $15.1 million on March 31 to $12.3 million as of June 30.
Andy Hunter, CEO of Silver State Schools CU, said, "We are very pleased with our second quarter performance. Our earnings were solid even apart from the benefit we recognized from the reduction of the Allowance for Loan Losses account. For the first half, we reported $5.2 million in net income before the $2.6 million credit to the provision for loan losses, compared to $5.1 million in net income before the $2.4 million credit to the provision for loan losses in the first six months of 2014."
Hunter noted SSSCU's performance continues to be helped by the ongoing improvement in Clark County's economic environment. He said the CU's regulatory net worth is now 6.80% of total assets.
"We anticipate that SSSCU will continue to report steady progress in the second half of the year," Hunter added.
Silver State Schools CU is privately insured by American Share Insurance. The CU was founded in 1951. It serves the educational community in the state of Nevada via nine locations throughout the Las Vegas valley.