LAS VEGAS — The president and CEO of Clark County CU must have thought he was on stage at one of Glitter Gulch's many comedy clubs when asked: How is the recovery treating you?"
"What recovery?" Wayne Tew deadpanned.
"I think what we are going to see, hopefully, is businesses recognizing they can come to conferences again," he said hopefully. "If the president isn't slamming Orlando and Las Vegas as convention sites, we will get some of that business back and it will take the edge off the unemployment rate."
The unemployment rate in Las Vegas is 13.9%, Tew pointed out, and statewide it is 13.3%, making Nevada No. 2 among states after Michigan. "We need that tourist economy to revive because we are heavily dependent on that," he assessed.
Any "meaningful" recovery will be as the result of a decrease in the unemployment rate, Tew continued. He listed a few positives: there are fewer homes for sale in Las Vegas these days, which is supporting prices, and the credit union is seeing fewer cars dropped off, which Tew said is "one sign the worst is past."
"Certainly unemployment, which went from 5% to nearly 14%, is not going to go to 20%," he said." We are just trying to keep breathing until we get some real positive news."
Clark County CU is "well capitalized" at more than 7%. He said 6% of its total loans have been set aside for potential losses.
"If you add that up, we are over 13%. We are optimistic that we have had the biggest blows to our financial statements. Our goal for 2010 is to break even; that would be a positive sign for us. Unfortunately, some credit unions have not had enough capital to survive, but we feel we will."
The bright side of the economic downturn? Tew said 95% of CCCU's members still are paying their bills. "They have that old American spirit of getting through and are making it happen. More than anything else is keeping attitudes up when the news has been so negative for so long. That applies to consumers and our staff as well - these conditions are hard on staff morale.
"We won't see substantial profitability, from a credit union perspective until 2011. We will be in survival mode through 2010.
