Nevada Still Struggling, but Shows Signs of Recovery
When comparing Nevada credit unions’ key financial indicators against other states as of June 30, the results aren’t good. Nevada’s 0.40% return on average assets, 2.5% loan delinquency and negative 11% loan growth are among the worst performance numbers in the country. However, compared with two years ago, those numbers are positive proof the recession didn’t permanently tarnish credit unions in the Silver State.
Take the $693 million One Nevada Credit Union, for example. The Las Vegas-based institution reported an ROA of 0.17% as of June 30. That number is a far cry from the previous industry standard of 100 basis points, but as President/CEO Brad Beal said, “At least it’s in the black.”
Members aren’t spending money either. Nevada’s negative 11% 12-month loan growth is the worst in the country. One Nevada reported negative 8% loan growth as of June 30, as members have little demand for new consumer loans, and the credit union hit its business loan 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 real estate at historically low prices. “We would make those loans if we had the room to do so, but we would be pretty selective about it.”