Silver State Schools Credit Union on Tuesday reported a $3.5 million loss in the first quarter compared with a $90,000 profit for the same period last year as the credit union continues to struggle with its portfolio of delinquent mortgage loans.
Since Jan. 1, 2011, Silver State Schools has lost $11.9 million. Driving the results was a $6.2 million provision for loan losses in the first quarter compared with a $3.4 million set aside in the same period last year.
"Despite the earnings and loan loss results, we continued to make progress during the quarter," said Andy Hunter, CEO of Silver State Schools. "Although our first quarter operating expenses were adversely impacted in the short-term by the closing of three branches in January, these actions will lead to reduced operating expenses for the credit union in the future."
Hunter said accelerated foreclosure actions and write downs on delinquent mortgage loans to fair value resulted in a $15 million reduction in total loan delinquency to $37 million in the first quarter.
"We have seen a substantial reduction in the amounts of early-stage mortgage delinquency during the past three months, which we believe bodes well for our future," Hunter said.
Contact reporter Chris Sieroty at email@example.com or 702-477-3893.