LAS VEGAS – Silver State Schools CU, the one-time $1 billion credit union under state supervision for the past year, reported a $2.8 million loss for its fourth quarter and an $8.4 million loss for the year this afternoon.
Fourth quarter numbers include an additional $4.4 million December cash infusion from ASI Inc., Silver State’s private share insurer, which gave it a $22 million loan in 2010. The new ASI assistance gave Silver State $27.4 million in net worth at Dec. 31, all but $1 million of which consists of ASI cash.
Silver State, which lost $72 million for 2009 and 2010, said provision for loan losses continued to have a significant impact on earnings. The allowance for loan losses increased to $32 million at December 31, from $30.2 million at the end of the third quarter, and from $24.8 million at year-end 2010.
"Although building reserves for loan losses has been a priority, we also continue to report a strong 3.72% net interest margin and our operating expenses decreased from $32.4 million in 2010 to $26.0 million in 2011,” said Andy Hunter, president of the $653 million credit union.
