LAS VEGAS-Stage Employees Credit Union is fighting hard to stay alive as it nears its 50th birthday.
Margie Lindsey, CEO of the $13.8-million credit union that serves 1,217 members, said its net-worth ratio has dipped to 4.1%, "which isn't great."
"We could do better and we have done better in the past," she said. "The examiners are working with us very diligently. We have told them we want to stay in business and they are giving us the opportunity to do so, so we are grateful for that. Some of the examiners we have seen lately have been very helpful and have given us some creative ideas."
Compliance is one of the "bigger" issues the tiny CU faces, but "getting people to pay" is probably the biggest, Lindsey said with a chuckle. Auto loans, especially for used cars, are its best source for income currently. It also offers Visa credit cards and debit cards.
The credit union booked several home loans during the housing boom, but now is suffering as many homes in this market are underwater and their owners have opted not to make payments.
"When the credit union is in the second or third position there really isn't much we can do," she said. "And as small as we are it hurts to write-off a loan, but we are trying to do what we can to survive."
Lindsey said she is the one who handles compliance for the CU. "I have to read a lot and make sure we are getting brochures out there and telling the members what they need to know. We do our best."
Watching Costs
Not surprisingly, every effort is made to keep a lid on expenses. The credit union is located inside the sponsor's building, which saves on rent. It has a total of five employees, one of whom is part-time, and everyone has to take a furlough day once a week.
Lindsey recently contacted its vendors regarding lowering costs, and to her surprise, many did so.
"We have online banking but got rid of bill pay because 98 people signed up for it but only 32 were using it and we were being charged for 98," she recalled. "At least we still have online banking so our members have access to their accounts online and are able to do transfers."
Stage Employees CU was chartered in 1964. People must be a stage hand or wardrobe person and a member of the union to be eligible to join. Lindsey has been thinking about broadending the field of membership, but until the credit union "gets well" that will have to wait, she said.
For now, it is trying not to grow. SEFCU is not accepting "large" deposits, defined as $25,000 or more.
In June 2011 it had net income of $22,971 prior to assessments. For 2010 it had a net loss of $385,775 excluding assessments. It paid $17,683 to the NCUSIF and $24,794 to the corporate stabilization fund, leaving it with a net loss of $428,252
