Nevada's largest credit union, the $819 million Silver State Schools, is on the financial mend despite shedding five of its 21 branches and witnessing the high level departure of top executives, said the president of its lead insurer, American Share Insurance of Ohio.
Sounding a positive note about the fate of Silver State, Dennis Adams, ASI CEO, forecasted the CU, which lost $51 million last year and $8.5 million in the first quarter, could become profitable in the second half "and on that I am hopeful but you can never be certain with these kind of challenges."
Adams, whose Dublin, Ohio private insurance firm lent $22 million to Silver State in February to prevent it from collapsing, said his examiner group "is in constant communication" with state regulators, CEO David Rhamy and its new management team to ensure a turnaround.
ASI, he insisted, has had no part in dictating to Rhamy on branch closings or the departures disclosed this week of veteran officers Carol J. Gibson, executive vice president/chief operating officer and Bernard A. King, executive vice president/chief financial/administrative officer.
"We deal directly with the management and the board," said Adams adding ASI "is very pleased with the cooperation that has been shown all around between Dave Rhamy, a very involved board, and the Financial Institutions Division."
The Division on March 22 entered into a "consent" order with Silver State requiring the Las Vegas CU to abide by unspecified obligations and producing unspecified documents all relating to a November financial exam. The Division has declined to spell out details of the agreement and the CU has maintained a "no comment" stance on its condition beyond website pronouncements.
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