Silver State Schools Credit Union continues to leave the Great Recession in its rearview mirror, as on Tuesday it reported its 18th consecutive quarter of positive earnings.
As of Sept. 30, Las Vegas-based SSSCU reported deposits of $642 million, total assets of $693 million, and loans of $455 million. It said liquidity “remains strong” at $124 million, with its regulatory net worth at $51.0 million.
For the quarter ending Sept. 30, Silver State Schools said in a statement its numbers “show continued progress.” The credit union, which was battered by staggeringly high losses in 2009 and 2010, reported net income of $2.40 million in the third quarter of 2016 and year-to-date earnings of $10.16 million.
In 2015, the CU reported third-quarter earnings of $2.66 million and year-to-date earnings of $10.50 million. And while loan losses drove the red ink seven years ago, Silver State Schools said its 2016 and 2015 earnings both included a credit to the provision for loan losses of $2.5 million and $2.6 million, respectively.
SSSCU said “consistently improving” credit quality “contributed significantly” to its results. Delinquent loans declined from $4.3 million as of Sept. 30, 2015, to $3.5 million as of Dec. 31, 2015, and rose slightly to $3.6 million as of Sept. 30, 2016.
As a result of “controlled and favorable” delinquency trends, as well as stability in the underlying collateral valuations in the Las Vegas market, Silver State Schools reported it was not required to fund additional amounts into its Allowance for Loan Losses account during the third quarter.
Scott Arkills, CEO, said, “Silver State Schools Credit Union’s financial performance for the third quarter of 2016 continues to be consistent with our high expectations. Our earnings reflect strong performance in asset quality and steady improvements in the local economy. Our regulatory net worth of 7.36% of total assets is in excess of the 7.00% regulatory minimum for a ‘well-capitalized’ credit union.
“We remain encouraged by these favorable financial results, and as always, we look forward to continuing our progress, and providing best-in-class service to the educational community for the remainder of 2016 and beyond,” Arkills continued. “As always, we are very grateful for the continued loyalty and patronage of our members.”
The CU suffered 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 and $14.69 million in 2015.
Silver State Schools Credit Union was founded in 1951. It serves more than 50,000 members of the educational community and their families in Nevada with eight branches throughout the Las Vegas Valley.
