Silver State Posts $1.2 Million Quarterly Profit
The ailing Silver State Schools Credit Union of Las Vegas managed a $1.2 million second-quarter gain and now hopes to end up remaining quarters at break-even levels, the president/CEO of the privately insured credit union, Andrew Hunter, has forecast.
In comments over the weekend, Hunter, the retired Patelco CEO recruited in July 2011 by Ohio-based American Share Insurance Inc. to fix the balance sheet, said that while the $645 million Silver State is reporting a $2.9 million first-half loss, both loan mitigation work and expense control have contributed to second-quarter improvement.
“We are pleased with our progress during the second quarter, and while we know the road ahead is still long and challenging, we continue to believe that we are heading in the right direction,” Hunter said.
Over the last six months delinquencies have declined 46%, from $52 million at Dec. 31, 2011, to $37 million at March 31 and to $28 million at June 30, the credit union said. As a result, provision for loan losses decreased from $6.8 million in the first quarter to $3.6 million for the second quarter, Hunter said.
“Real estate prices have stabilized, the unemployment rate remains stable and we find there are a lot more investors bidding on the foreclosed homes which has helped reduce our losses over the past several months,” said Hunter.
In 2011, SSSCU had a $2.9 million net loss in the second quarter and a net loss of $2.8 million for the first half of 2011.
As he has all during 2012, Hunter said Silver State has no interest in pursuing a merger with an out-of-state credit union despite early rumors that potential California partners were being lined up.
Silver State, which is operating under a $24 million capital note extended two years ago by AS,I remains under tight budget control, said Hunter, and has no plans to rejoin the California/Nevada Credit Union League. Silver State at one time had been the lead sponsor in the Las Vegas chapter which has seen its numbers diminish as credit unions failed or merged.