Troubled Silver State Schools CU To Reduce Employee Wages
LAS VEGAS – Silver State Schools CU, the one-time $1 billion credit union struggling to stay afloat, said Monday it will cut employee pay by 2% starting in September to cut cost by $150,000 a year.
The pay cuts come after Nevada’s largest credit union has already reduced its staff by 13% since 2009 to 228 employees, to trim expenses. The credit union plans to close two more branches later this year, after shuttering six the past two years, and is now a $720 million institution.
Silver State, which lost $72 million in 2009 and 2010, reported a slim $90,000 net for the first quarter of 2011, but most of its $22.9 million net worth is now comprised of an emergency $22 million loan provided by American Share Insurance, its private deposit insurer.