Silver State Schools Cuts Losses, Gets New Cash Infusion From Insurer
Silver State Schools Credit Union continued to lose money in the fourth quarter, posting a net loss of $2.8 million, and finishing the year with a net loss of $8.4 million, the Las Vegas credit union said.
The $2.8 million loss mirrored the third quarter results. However, that compared with a net loss of $21.4 million in 2010, and the credit union’s private insurer, American Share Insurance, gave Silver State Schools, another $4.4 million capital boost in December “after consideration of the steady progress made by the credit union over the past 12-18 months,” the credit union said in a statement.
“We look forward to continued improvement in 2012,” said Silver State Schools CEO Andy Hunter, the retired Patelco CU CEO who took over earlier this past summer.
ASI had previously given Silver State Schools a $22 million capital assistance note in February 2010.
The struggling Silver State Schools lost its spot as Nevada’s largest credit union during the year, and said provision for loan losses continued to have a significant impact on earnings. Silver State Schools also formerly operated 21 branches from Las Vegas to Reno but has since shrunk that number to nine.
Loan loss allowances increased to $32 million on Dec. 31, compared with $30.2 million at the end of the third quarter and $24.8 million at the end of last year.
Once a billion-dollar credit union, Silver State Schools ended the year with deposits of $623 million, total assets of $653 million, and loans of $542 million, adding in its statement that liquidity continues to remains strong and regulatory net worth stands at $27.3 million.
"Although building reserves for loan losses has been a priority, we also continue to report a strong 3.72% net interest margin and our operating expenses decreased from $32.4 million in 2010 to $26.0 million in 2011. These numbers are signs of progress that should not be overlooked,” Hunter said.