LAS VEGAS One Nevada CU, the state’s biggest credit union, reported a $1.4 million net for the fourth quarter and a $2.5 million net for the year—shedding red ink for the first time since 2008.
Last year’s net comes after losses of $4.8 million for 2011; $4.2 million for 2010 and $32 million for 2009, as Nevada became mired in one of the worst economic downturns in the country. The downturn plunged virtually all of the state’s credit unions into the red and caused several of them to fail.
The improvement in the One Nevada’s luck coincides with an improving local economy enabling the $666 million credit union cut its provision for loan losses by $5.1 million last year. The improvement was also aided by a decrease in the corporate assessment paid to NCUA by $1.2 million from 2011.
As a result, the state’s credit unions are finally on the rebound. Four of the state’s five biggest credit unions reported positive net income for 2012: One Nevada; Clark County ($7.3 million); Boulder Dam CU ($1 million) and Greater Nevada FCU ($9.2 million), with Silver State Schools CU close to breaking even (a $670,000 loss for 2012).
One Nevada’s improvements, combined with a lower asset base, helped build the credit union’s net worth ratio up to 9.9%. "As such, we remain one of the strongest credit union in the nation," said Brad Beal, president of One Nevada, in a message to members.
