COLUMBUS, Ohio – Financial problems related to two troubled Las Vegas credit unions were the primary drivers behind last year’s first-time special assessment by private deposit insurer ASI Inc., a second quarter financial report by the Dublin, Ohio, company shows.
The problems last year caused ASI to charge its 130 or so privately insured credit unions a premium of $15.2 million, or 0.15%, the same assessment charged by NCUA to federally insured credit unions. The special charge helped ASI offset insurance losses of $32 million, the report states.
The majority of the losses were in two Las Vegas credit unions.
One was Cumorah CU, a $210 million credit union serving the state’s Mormon Church, which was merged into Credit Union 1 of Illinois at a cost of $8 million to ASI.
The other was Silver State Schools CU, the state’s largest credit union, which lent $22 million in February as it was digging out from a $51 million loss for 2009. ASI has set aside $24.6 million in reserves for potential losses related to the one-time $1 billion credit union. Silver State must repay ASI the loan plus 3.25% interest a year under the terms of the special assistance, according to the ASI report. ASI and Silver States are negotiating terms for a longer-term assistance, up to five years, the report indicates.
Those two were among several troubled Nevada credit unions. Three other of the state’s biggest credit unions failed last year: Community One FCU in Las Vegas, Clearstar Financial CU in Reno and Ensign FCU in Henderson. All three were acquired by out-of-state credit unions. The state’s second- and third-largest credit unions, Nevada FCU and Clark County CU, also reported big losses for 2009 and into 2010.
Officials at ASI did not return a phone call seeking comment yesterday. Nor did those at Silver State Schools.
