The deeply troubled Silver State Schools Credit Union, which in February received a $22 million capital infusion from Ohio-based American Share Insurance, spelled out details this week of its difficult year.

In a message of reassurance to its members "that we are in a rebuilding mode and here to stay," David Rhamy, the president/CEO of the $819 million Las Vegas CU, said the financial assistance from ASI of Dublin, Ohio, should help cushion against future losses should "things turn bad" though that is not expected to happen.

Its year-end financial report posted on the ASI Web site shows ROA of -5.6%, net worth at 2.8% or $23 million, loans at $740 million and with one report showing loan chargeoffs at $45 million or 5.1% of outstandings. Delinquencies at year-end reportedly stood at $60.6 million or 8.19% of outstanding loans.

In comments made on the CU's condition to the Las Vegas Sun, Rhamy said the CU had written off $35-$36 million in bad loans during 2009 and that its reserves now stand at $72 million giving the CU security should the Nevada economy further weaken.

In December, Rhamy projected the CU could have net income of $6 million to $8 million in 2010, but he told the Las Vegas Sun Silver State has revised its outlook forecasting a net loss of $10 million. At the worst, the credit union projects it will have to write off $20-$22 million in loans during 2010, he said.

Neither ASI nor Silver State has detailed the terms of the $22 million infusion but Rhamy said in the article that the borrowing is long term debt "and doesn't have a repayment date." But "it is going to take another two to three years to earn back the losses" and be in a position to pay off ASI.