2 credit unions report smaller losses

By Steve Green

Tuesday, Nov. 9, 2010 | 1:26 p.m.

Two big Nevada credit unions are reporting improved financial results as they ride out the recession that has yielded tens of millions of dollars in losses from loans gone bad.

Nevada Federal Credit Union, with some $693 million in loans and other assets, reported losing just $3.6 million during the first nine months of this year -- leaving it with a strong capital ratio of 9.3 percent.

The credit union, with 81,000 members, reported a year-to-date provision for loan and lease losses of $18.2 million.

Those numbers compare to a loss of $29.6 million with $37.6 million set aside for loan and lease losses in the first nine months of 2009.

CEO Brad Beal told credit union members in his latest financial update that Nevada Federal "continues to be successful despite local economic conditions" and that its capital ratio is among the best in the nation.

Silver State Schools Credit Union separately today said it lost $17 million in the first nine months of 2010, an improvement from the $40.9 million lost in the same period of 2009. Silver State ended 2009 with about 78,000 members.

Silver State, with loans and other assets of $754.8 million, continued to struggle with a capital ratio of 4.68 percent as of Sept. 30.

"The credit union has seen a marked improvement in earnings over the prior year. We have strategically improved our financial condition by applying cost-cutting measures including closing several branches, decreasing the balances of higher cost funds and implementing more effective credit collection efforts. Those improved collection efforts have reduced delinquencies by over $8 million from the first quarter of 2010. However, the level of unemployment in Nevada and the corresponding impact on problem loans will continue to hamper our efforts toward fully rebuilding our capital reserves for some time. In spite of these challenges the credit union is progressing steadily," CEO Dave Rhamy said in a statement.