LAS VEGAS – In another sign of a potential turning of the economy, credit unions throughout Nevada, one of the worst-hit states in the recession, are starting to report better financials.
Losses are continuing for the biggest credit unions in Nevada, home to several big failures last year, albeit at much smaller rates. Silver State School CU, a one-time $1 billion credit union under a special assistance regime with state regulators, reported mid-year losses of $13.4 million, compared to losses of $50.9 million for 2009. Clark County CU reported a mid-year loss of $4.1 million, compared to a $25.3 million loss last year. Nevada FCU a $2.8 million loss compared to a $32 million 2009 loss. Greater Nevada FCU a $900,000 loss after a $10.9 million 2009 loss. Boulder Dam CU reported a first half loss of $538,000 after a $2.3 million 2009 loss.
The numbers would have been better still for all the federally chartered credit unions were it not for the second quarter NCUA assessment for the corporate credit union bailout. Nevada FCU had a $790,000 operating net for the second quarter but was pushed into the red by an $880,000 NCUA charge. Greater Nevada had a $480,000 second quarter net erased by a $620,000 NCUA charge.
But one analyst expressed caution regarding the precarious condition of the state’s economy. “Unfortunately, the global recession and the extent of the domestic financial problems has taken a big toll on conventions and the gaming industry,” said Daniel Penrod, economic analyst for the Nevada CU League, asserting that a recovery in Nevada will have to wait for the recovery in California and other Western states.
“Nevada is so gaming dependent, so tourism dependent, until the situation picks up in the surrounding states, Nevada is not expected to see a full recovery,” said Penrod.
