LAS VEGAS — Silver State Schools Credit Union, which suffered nearly catastrophic losses during the recession, said it has "turned a corner" after posting $13.55 million in net income for 2013.
Silver State Schools had $1 billion in assets prior to the financial crisis, but plummeted to $622 million at the end of 2012.
The CU, which is privately insured by American Share Insurance, reported $637 million in total assets as of Dec. 31. It held $594 million in deposits, $400 million in loans, and said its liquidity "remains strong," with regulatory net worth at $40.3 million.
Its fourth quarter 2013 net income was $2.68 million. The annual earnings include a one-time non-operating gain of $5 million during Q3.
Over the course of 2013, SSSCU said its delinquent loans declined 32%, from $19 million on Dec. 31, 2012, to $13 million on Dec. 31, 2013. As a consequence, provision for loan losses decreased to $3.8 million in 2013, from $16.4 million in 2012.
"Our significant improvement in 2013 is very encouraging, and gives rise to the view that we have turned a corner," Andy Hunter, president and CEO, said in a statement. "Nevada's economy has shown marked signs of resurgence, particularly in increasing property values. This brighter economic outlook has manifested itself in several ways at the credit union; delinquencies continue to fall, provision for loan losses has decreased, we have experienced seven consecutive quarters of positive earnings, and have ended the year with a regulatory net worth ratio of 6.32%."
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.
"In 2013 we saw outstanding improvement in our financial results over 2012. We are encouraged by the progress we have made, and look forward to building upon that progress in 2014," Hunter said.
