Management Shifts Also Mark Silver State Report
The long-term financial troubles at Nevada’s largest credit union, the $718 million Silver State Schools,, have also been accompanied by recent changes of senior management.
David Rhamy, president of Silver State, remains CEO but recently brought in as “chief restructuring officer” is Michael Sacher, former partner-in-charge at McGladrey Pullen accounting firm in Los Angeles. He replaced William Connors, a retired president/CEO of Purdue FCU of West Lafayette, Ind. who left in January and had been brought in during 2010 to help restore the balance sheet.
The management shifts have all been effected under the watchful e ye of state regulators and American Share Insurance Inc. of Ohio, the private insurer for the Las Vegas CU.
The credit union reported which Thursday reported a $21.4 million loss at the end of 2010.
“Bill came out of retirement to help out and ended up staying longer than expected but he seems to have done a credible job,” said one industry source who had been close to Silver State negotiations last year and who asked for anonymity.
Silver State issued an official statement Thursday quoting Rhamy on Silver State’s progress in trimming its 2010 losses from the $50 million in red ink during 2009 but has been mum on management operations. ASI officials in Columbus have referred calls on Silver State operations to Rhamy who has declined to return phone calls.
In its statement Thursday, Rhamy insisted “Silver State Schools is on the road to recovery, even during these difficult economic times and the stabilization of loan delinquency rates and loan charge-offs” has occurred. “The quarterly trend of rate of loss has steadily improved over the past six quarters since mid-2009 and in fact, for the first two months of 2011, the credit union is showing marginal profitability.”’
“Loan demand remains historically low but the pace of job losses and home-value declines appear to be slowing,” he concluded. “With little room to grow in a difficult economy, the credit union focused this past year on curtailing costs and reducing operating expenses by $5.0 million or 13.3% in 2010 from the year prior.”