When comparing Nevada credit unions' key financial indicatorsagainst other states as of June 30, the results aren't good:Nevada's 0.40% return on average assets, 2.5% loan delinquency and-11% loan growth are among the worst performance numbers in thecountry.

However, compared to two years ago, those quarterly numbers fromthe NCUA are positive proof the recession didn't permanentlytarnish credit unions in the Silver State.

THE WHOLE PICTURE: See the NCUA Quarterly U.S. Map Review

Take the $693 million One Nevada Credit Union, for example. The Las Vegas-basedinstitution reported an ROAA of 0.17% as of June 30. That number isa far cry from the previous industry standard of 100 basis points,but as President/CEO Brad Beal said, “at least it's in theblack.”

Just two years ago, One Nevada's second-quarter numbers includednegative -0.73% ROAA, a 4.95% loan delinquency figure and a 5.66%charge-off ratio. Charge offs were still around 4% as of June 30,2012, but delinquencies have fallen to 2.51%, on pace with thestate average.

Although the tourism-based Nevada economy is still weak, it hasstabilized, Beal said. And, One Nevada has worked its way throughthe bad loans in its portfolio, and is left with relatively highquality loans.

“In terms of ROA, we're putting away less in provisions for loanlosses,” Beal said. Although the credit union's $6.6 millionyear-to-date June 30 loan loss provision is “pretty heavy,” he saidit's still $2 million lower than the $8.6 million it had set asideone year prior.

And, both numbers pale in comparison to the $23.7 million thethen-Nevada FCU put into loan loss provisions as of June 30,2009.

Nevada Credit Union League Chief Economist Dwight Johnston saidconsidering what Nevada credit unions have been through, they'veweathered the storm well.

“The thing that jumps out to me are capital ratios,” Johnstonsaid. He noted that some large, struggling credit unions havedistorted the average, but statewide, Nevada credit unions reportedaround 11% net worth as of June 30.

“That's pretty close, historically, to what they've always run,”he said, “and that speaks well to how they've managed throughit.”

There's still work to be done managing through the recession in Nevada, Johnston said, because constructionprovided such an economic boost in the state and that sector won'treturn to the levels seen in the boom years.

However, he said, the worst has passed. Most credit unions inNevada, like One Nevada, have worked their way through the weaklinks in the loan portfolio and can look forward to less aggressiveloan loss reserves in the future. Investors are buying up thestate's glut of foreclosed homes, although the economist said he'sconcerned the new owners won't gain the cash flow they're expectingfrom renters.

Online retailers including Amazon and Zappos have facilities inLas Vegas and are supplying jobs. However, those positions aren'twell suited for the throngs of construction workers that make upthe state's current 12% unemployment rate.

“Talk about a retraining effort,” Johnston said, noting that LasVegas may see a continued decline in population.

Occupancy rates for hotels on the Strip are pretty high, Bealsaid, running in the 90% range. However, tourism has not completelybounced back, because tourists aren't spending nearly as much oncethey arrive in Las Vegas.

Members aren't spending money, either. Nevada's -11% 12-monthloan growth is the worst in the country. One Nevada reported -8%loan growth as of June 30, as members have little demand for newconsumer loans, and the credit union hit its businessloan cap when it shrunk its assets.

“We haven't made any business loans for a couple of years now,”Beal said, noting that investors are snapping up commercial realestate at historically low prices. “We would make those loans if wehad the room to do so, but we would be pretty selective aboutit.”

The only lending action One Nevada is seeing these days isrefinancing auto and mortgage loans.

“We're kind of recycling the existing business out there sincethere's not much new business,” Beal said, “but it has given us theopportunity to attract some new members.”

Since the federal government's Home Affordable Refinance Programeliminated loan-to-value limits last fall, One Nevada has been“buried” in HARP 2.0 refinance applications, Beal said.

“We've done almost $60 million in HARP re-fis in the last twomonths, compared to about $150 million during all of last year,”Beal said. “HARP 2.0 has been extremely good for homeowners inNevada and our credit union.”

In fact, HARP 2.0 has been so popular in Nevada, Beal said, thatafter two weeks marketing mortgage re-fis, the credit union stoppedpitching the program.

“At some point we will reinstitute some marketing for it becausesome consumers are still unaware of their options. But for themoment, we aren't doing any marketing at all and still writing thatstuff like crazy,” Beal said.

The credit union isn't keeping any of the refinanced mortgageson its balance sheet, selling them all to Fannie Mae and earningnon-interest income off the deals, he said.

By contrast, Elko, Nev., located in the northeast corner of thestate, has been relatively immune from the economic downfallsuffered in the population centers of Las Vegas and Reno. In fact,according to Elko Federal Credit Union President/CEO Kelly Buckner,the mining community is experiencing an economic boom thanks torecord high gold prices.

The area is largest producer of gold in the country, and one ofthe top four in the world, Buckner said. The gold boom has had abig impact on the $117 million credit union's financials, whichbuck the statewide trend.

As of June 30, the $118 million EFCU reported 0.32%delinquencies to total loans, and a jaw-dropping low 0.06% chargeoff ratio. ROA was 0.73%, and net worth, market share, membershipand deposits are all growing at a healthy pace so far thisyear.

However, like everywhere else in the country, Buckner said he'shaving difficulty making new loans. EFCU reported a -5.74% loangrowth rate as of June 30 and continues to battle a shrinking loanto share ratio.

With an eye toward the future, Buckner said EFCU is currentlyinvestigating its options to start making member business loans,after receiving “a lot of requests from members who own smallbusinesses, need financing, and know the credit union can provideit safely and soundly.”

EFCU also recently signed on with CU Direct Lending, he said,hoping the partnership will generate more auto loanbusiness.