Long-ailing Silver State Schools Credit Union on Wednesday said it has recorded its first quarterly profit – $90,000 – in more than two years.
Last year, the $725 million Las Vegas credit union lost $8.5 million in the first quarter en route to a 2010 loss of $21 million.
Silver State Schools, Nevada's largest credit union, went under a state supervisory agreement in 2009 and received a $22 million capital infusion from its private insurer, Ohio-based American Share Insurance, not long after.
Now, improved asset quality, fewer loan delinquencies and lower estimates of future charge offs have combined to give the credit union its first profitable quarter in nine quarters, Silver State Schools said in a statement.
First quarter gross loans totaled $570.2 million and total shares were $677.1 million. The regulatory net worth to assets ratio was 4.31% percent at quarter's end.
Reportable delinquent loans decreased to $43.7 million as of March 31, 2011, from $62.7 million a year earlier, a reduction of 30%. Loan loss provisions for the quarter were $3.4 million, down from $11.1 million in the year-ago quarter.
President/CEO Dave Rhamy said Silver State Schools is "pleased to report the transition from relatively large losses to modest gains, which signals that the credit union is on its way to recovery. The strategic steps we have taken are proving to be successful."
Rhamy said the tough economy of 2008 to mid-2010 was challenging for Silver State Schools. "Like most financial institutions in our region, the financial crisis hit us hard. It's gratifying to know we are once again on the right path," he said.
Silver State is now projecting "slow and steady progress going forward" and "given the challenges our local economy faces, especially among our educators, we are fully committed to finding ways to reduce costs and improve operational efficiencies" Rhamy said. "Through it all, our focus has been and will remain on serving the financial needs of our members – as we have done for the past 60 years."
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