LAS VEGAS – Troubled Silver State Schools CU, under a supervisory agreement with state regulators, reported third quarter losses yesterday of $2.7 million, creating a $5.5 loss for the year and further jeopardizing a $22.8 million emergency infusion of capital provided to it by its private deposit insurer ASI Inc.
The growing losses leave Silver State with just $24.2 million in net worth (3.6%), the vast majority of it the ASI capital infusion. As a result, Silver State now has just $1.4 million of its own capital, less than 1%, meaning a fourth quarter loss of $1.4 million will erase all of its remaining capital and start eating into the ASI loan.
At the end of the third quarter the one-time $1 billion credit union’s assets had declined to $667 million and it was reporting negative $61 million in undivided earnings.
Two other ASI-insured Nevada credit unions reported that the 15 basis points premium assessed by the private insurer trimmed their net income for the period. Boulder Dam CU reported a slight $47,000 net for the third quarter and a $3.2 million loss for the first nine months; and Plus CU a $60,000 third quarter loss and a $1 million three-quarter loss.
But Clark County CU, the state’s third largest credit union also insured by ASI, reported positive net income of $850,000 for the third quarter, and a $2.1 million net for the first three quarters.
OneNevada CU, known till recently as Nevada FCU, reported that a $700,000 third quarter charge for NCUA’s corporate credit union assessment left it $461,000 in the red for the quarter, and with a $2.8 million loss for the first nine months of the year. The $685 million credit union accrued a $1.5 million three-quarter charge for the NCUA assessment, leaving it $1.3 million in the red, otherwise.
