The long-ailing Silver State Schools Credit Union of Las Vegas said Tuesday it is witnessing "a sharp improvement in earnings," having trimmed its nine-month loss to $17 million, a 58% gain over the $40.9 million a year ago.
Losses for the third quarter were $3.6 million compared to a net loss of $16.8 million for the same quarter of 2009, a 79% improvement. Its regulatory net worth to assets ratio remains at 4.68% as of Sept. 30.
The privately insured Silver State, which has been under a regulatory watch for nearly two years, said it continues to work on cost-cutting steps having closed branches, improved credit collection and decreased balances of higher cost funds.
"Those improved collection efforts have reduced delinquencies by more than $8 million from the first quarter of 2010," said David Rhamy, president/CEO of the $791 million CU, which last February received a $22 million capital infusion from its insurer, American Share Insurance Inc. of Dublin, Ohio.
In a statement, Rhamy cautioned that Nevada's deep economic recession and high unemployment "and the corresponding impact on problem loans will continue to hamper our efforts toward fully rebuilding our capital reserves for some time."
In spite of these challenges, Silver State "is progressing steadily, and we are committed to providing our members with excellent member service and financial solutions for life," he said.