After Year-End Delay, Silver State Cuts Loss to $21 Million
Perhaps now the last credit union in the nation to file its year-end call reports, the long ailing Silver State Schools Credit Union of Las Vegas reported late Wednesday an improvement in its financial condition, but it still showed a $21.4 million net loss for 2010 and net worth at 4.32%.
The privately insured Silver State, which has been operating under a $22 million capital infusion note for more than a year from American Share Insurance Inc., the Ohio insurer, noted that its fourth quarter losses were pared to $4.4 million, down from the $15 million of a year ago. In 2009 Nevada’s largest CU lost nearly $51 million. Its net worth a year ago was 3.64%.
Dennis Adams, the president/CEO of ASI, voiced confidence as he has during 2010 that “Silver State is on the right track” to become viable as it continues to struggle in the depressed Nevada economy.
The CU’s delinquency ratio remains at 7.74% but down from 8.19% a year ago, said the call report, which was released late Wednesday by the Nevada Financial Institutions Division. The Division has kept Silver State on a watch list for more than two years since its troubles first surfaced.
The CU, which also saw its assets shrink $50 million in the fourth quarter, has also been operating under a supervisory agreement with the state for the last year.
Adams said the $22 million long-term capital note extended by ASI last year has been renewed through 2015 “based on the progress we’ve seen and on that we are encouraged.”
The note is not payable until its term ends “so we want them to be in good shape,” said Adams.
The delay in filing, he said, relates to “some back-to-back quarterly and semiannual exams they had from the state and ASI all in February,” thus creating a backlog.
Industry bloggers had taken note of the delay, noting that no other CU had filed so late and calling the delay “surprising.”
In its report, Silver State noted that it did record a $3 million fourth quarter accounting charge related to what ASI officials said amounted to an “allowance cleanup.”