In a flip-flop in a state reeling from a depressed economy, One Nevada and Silver State Schools have traded places in ranking as the state’s largest credit union.
The switch comes as beleaguered Silver State won reaffirming support this week from its private insurer.
After years of holding the top spot, the $684 million One Nevada, which dropped the Nevada Federal brand and charter in October, replaced the $677 million Silver State Schools at the top.
“Let me say the change is not something we really care about since we could just as easily drop again,” considering the low level of CD and investment rates, said Greg Barnes, senior vice president-marketing of One Nevada.
One Nevada’s priorities now, said Barnes, are to market its new brand as the CU seeks to plot future member growth and branch expansion in northern Nevada where it has a facility in Sparks, a Reno suburb.
Meanwhile, Dennis Adams, president/CEO of Ohio-based American Share Insurance Inc., reaffirmed “the collective commitment” of the firm’s board and management to financial restoration of Silver State Schools, which since February 2010 has relied on a $22 million capital note to shore up its net worth now at 3.7%.
Silver State Schools has been operating under a strict supervisory agreement with the Nevada Division of Financial Institutions since 2009. A new CEO, retired former Patelco CU CEO Andrew Hunter, took over in July.
Adams told Credit Union Times that despite Silver State Schools’ $5.5 million loss for the first three quarters, ASI “is not surprised” at the performance, considering Las Vegas continues to struggle.
Moreover, Adams said, the CU “is generating solid pre-provision expense monthly net income but the continuing unemployment and associated delinquency have diminished the gains.”
As for ASI’s $22 million capital assistance,” it was fully reserved for at year-end 2009 in accordance with generally accepted accounting principles and prior to us actually funding” the note, said Adams.
In essence, “nothing has changed” on that loan, now extended through 2015, he said.
With the focus on keeping a lid on delinquencies in a state with 13.4% unemployment and the highest foreclosure rates in the nation, both CUs have paid little or no attention to Bank Transfer Day.
“We wanted to concentrate on the rebranding and not muddy the waters,” Barnes said, noting that One Nevada branches remained closed on Saturday. There was nary a mention of BTD on either website or much on any other Las Vegas CU website.
“I think they did some Bank Transfer Day promotion up in Reno but we just didn’t,” said Barnes. Only the $5.1 billion America First FCU of Ogden, Utah, which two years ago took over the failed Community One FCU of Las Vegas, did post a press release touting Bank Transfer Day.