Silver State Schools Credit Union on Friday said its financial results for the quarter ending June 30 reflect “sustained progress,” as SSSCU reported its 21st consecutive quarter of positive earnings.
The CU reported net income of $2.66 million in the second quarter of 2017, compared to net income of $5.02 million for the second quarter of 2016. Silver State Schools earned $5.46 million in the first six months of this year, compared to $7.76 million in the first half of 2016. The credit union said its 2016 first-half earnings included a credit to its provision for loan losses of $2.5 million, while its first half 2017 earnings had credit of $255,000.
Silver State Schools CU credited “steadily improving asset quality” for its most recent results. It said other real estate owned properties decreased from $627,000 as of June 30, 2016 to $510,000 as of June 30, 2017, a reduction of $117,000 or 18.7 percent over the period. During the same time period, delinquent loans as a percentage of total loans decreased from 0.77% to 0.61%.
“As a result of continuing improved credit quality, as well as low delinquency and stability in the underlying collateral valuations in the Las Vegas market, the credit union was not required to fund additional amounts into its Allowance for Loan Losses account during the second quarter,” SSSCU said in a statement.
As of June 30, 2017, SSSCU reported deposits of $668 million, total assets of $732 million, and loans of $504 million. It said liquidity “remains strong” at $75 million, and the credit union’s regulatory net worth stands at $61.3 million, equal to 8.38% of total assets (“well capitalized”).
CEO Scott Arkills said in a statement, “We continue to experience consistent and sustainable growth, while improving our financial strength and performance. Our net income earnings were strong for the second quarter of 2017, reflecting strong loan growth and continued improvements in asset quality as well as an improved net interest margin.”
Arkills said the credit union continues to “greatly improve each quarter as a well-capitalized financial institution, and we are pleased with and encouraged by our positive results and financial position. We look forward to building on our successful results over the last 21 quarters, as well as providing best-in-class loan programs, new innovations and improved member services to the educational community throughout the remainder of 2017 and beyond.”
Arkills took over from the retiring Andrew Hunter in 2015.
The CU was battered during the recession and endured the painfully slow recovery in Southern Nevada. Silver State Schools had $1 billion in assets prior to the financial crisis, but plummeted to $622 million at the end of 2012. The credit union is privately insured by American Share Insurance.
In 2009, Silver State Schools lost $50.8 million, followed by a loss of $21.4 million in 2010 and $8.4 million in 2011. After a much smaller net loss of $670,000 in 2012, the CU reported $13.55 million in net income for full year 2013, including a one-time, non-operating gain of $5 million during the third quarter. It earned $13.2 million in 2014, $14.69 million in 2015 and $14.98 million in 2016.
