LAS VEGAS — Silver State Schools Credit Union continued its remarkable turnaround in the first quarter, posting $2.5 million in net income as it reported "steady progress."
The most recent quarter marked the eighth consecutive three-month period of positive earnings for SSSCU. The $2.5 million in the first quarter of 2014 compared to net income of $1.18 million for Q1 2013, and $2.68 million for Q4 2013.
It 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.
One of the most significant developments in the first quarter of this year was delinquent loans declined from $13 million on Dec. 31, 2013 to $10.3 million as of March 31, 2014. SSSCU said it was able to lower its allowance for loan losses from $18.8 million at Dec. 31 to $17.3 million at March 31.
As a result of the lower delinquent loans and continued improvements in the underlying collateral valuations in the Las Vegas market, SSSCU said it was not required to fund additional amounts into its allowance for loan losses during the recently concluded quarter.
"The credit union has gotten off to a good start in 2014," Andy Hunter, Silver State's CEO, said in a statement. "We are pleased to report that we are making solid progress. Nevada's economy continues to bounce back, with home prices increasing, unemployment slowly decreasing, and more jobs becoming available. These improvements have positively impacted the credit union's bottom line, with strong earnings, declining delinquencies and a regulatory net worth ratio of 6.54%."
Total Assets Rising
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, which is privately insured by American Share Insurance, reported $656 million in total assets as of March 31, up from $637 million as of Dec. 31, 2013. At the end of the first quarter of this year, it held $608 million in deposits, had $397 million in loans, and said its liquidity "remains strong," with regulatory net worth at $42.9 million.
"We are privileged to serve our member community, grateful to them for their loyalty and support, and we appreciate the opportunity to work with them to meet their financial needs," Hunter added.
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. The CU noted its 2013 earnings were a "substantial improvement" over another net loss of $670,000 reported in 2012.
