Silver State Schools Credit Union of Las Vegas, which received a $22 million capital infusion last February from its private insurer, is closing five branches in June operating under a "consent order" from the state, it was disclosed Wednesday.
In a website message, www.silverstatecu.com, to members discussing the consolidation, David Rhamy, president/CEO, said the state's largest CU is shuttering two branches in metro Las Vegas, two in Reno and one in Henderson, effective June 4.
The decision to shutter the branches comes from a plan to restore financial health that the $819 million CU has with American Share Insurance and state regulators.
Citing the need for "additional belt tightening," Rhamy said Silver State's "comprehensive plan addresses this need, and involves consolidation of our extensive, state-wide branch network."
"After careful analysis of multiple factors including but not limited to transaction counts, profitability, deposit base, proximity of another branch office, and growth potential, we have decided to close the branches," Rhamy wrote in the message. No mention was made of the number of employees affected and CU officials were not immediately available for comment.
The Rhamy message also makes reference to a "consent order" with the Nevada Financial Institutions Division citing "our continuing, long-term effort to replenish reserves affected by the struggling Nevada and national economy." The financial health plan was "developed and put in place through the cooperative efforts of staff, management, and the board of the credit union as well as our state regulator and our deposit insurer."
Regarding the branch closings, the Rhamy message lists these on the hit lists: Mae Anne and Damonte facilities of Reno; Clayton of North Las Vegas, Desert Foothills of Las Vegas and Anthem of Henderson.