LAS VEGAS–Silver State Schools Credit Union, which could receive a cash infusion from its deposit insurer, American Share Insurance, in the near future, could be profitable by next year.
In an interview with the Las Vegas Sun, Dave Rhamy, president of the credit union, said the credit union will be able to expand by making additional loans once it receives the cash infusion. Rhamy told the Sun that the credit union is not in danger of failing, even though reserves stalled at $54 million at the end of Q3 and its year-to-date losses are $35.8 million. The losses, Rhamy said, are actually below projections, and he believes it will also not meet loss projections for Q1 2010, and may even make a small profit. The credit union has $51 million in delinquent loans.
Last week Rhamy resigned as CEO of the credit union before returning abruptly less than a week later. The Sun quoted Rhamy as saying he departed because there was a feeling someone had to take responsibility for the CU’s performance, but that he returned in order to calm concerns over the CU’s future. He said Silver State Schools has not seen a sharp decline in membership, with membership down about 2,000 for the year.
