Credit unions operating in LV lose cash in quarter

All 14 credit unions operating in Southern Nevada lost money in the first quarter as the area’s economy slipped further into the abyss.

"These are horrible numbers," Chief Financial Officer Roy Holstrom of Clark County Credit Union said. "As a CFO, every nerve fiber I have is screaming about this."

Holstrom’s Clark County Credit Union remains relatively strong, with net worth equal to 8 percent of total assets.

But, Community One Federal Credit Union, a $161.9 million asset institution, ended the quarter in critical condition with net worth of less than 2 percent of assets.

"We’re a community-based credit union," said Jerrold Rosen, vice president of marketing. "Unemployment is at a 20-year high. That’s going to negatively impact our (loan) delinquencies. These are tough times right now."

Community One has gone through hard times before, he said.

"We’re optimistic that we’re going to get through it again," he said.

Rosen acknowledged that Community One has several options, including a possible merger with another credit union.

David Rhamy, chief executive officer of Silver State Credit Union, said he would not be surprised to see two or three credit unions merged out of existence in 12 to 18 months although he did not mention any credit unions by name.

Although a merger would affect Community One employees, its members’ savings and checking accounts are fully covered up to $250,000 in federal deposit insurance from the National Credit Union Administration.

However, five Southern Nevada credit unions rely on American Share Insurance, an unrated insurance company based in Dublin, Ohio. Eric Estes, executive vice president of Boulder Dam Credit Union and former chairman of the mutual insurance company, said it is not rated because it is the only private deposit insurer in the country and rating firms have no peers for comparison to American Share Insurance. The insurance company dates from 1974.

Nevada’s largest credit union, Silver State Schools Credit Union, also is the biggest credit union in the country insured by American Share Insurance. It counts almost $1 billion in assets and 80,000 members including many teachers and their families.

Silver State recorded a $9.6 million loss for the first quarter. During the quarter, the credit union doubled its loan loss provision to $14.2 million from $6.2 million at year’s end.

Like many credit unions, Silver State relied on Western Corporate Federal Credit Union for financial services and lost money when federal regulators seized Wescorp. It will charge off $3 million for that loss in the second quarter, Rhamy said.

The credit union’s loan quality has rapidly deteriorated in the last couple of years. Total loans delinquent for two months or more increased to $42.4 million on March 31 from $6.9 million at the end of 2007.

The credit union repossessed about 1,000 cars over the last 12 months and has about 400 vehicles in inventory.

Rhamy said the institution has about 100 first residential mortgages that are delinquent, out of 2,500 such loans.

Silver State has offered to modify the rates and maturities of mortgages to make it easier for members to avoid foreclosure. In one case, the credit union temporarily slashed the interest rate to 2 percent for a home loan.

Homeowners are not always satisfied, but Rhamy said he is limited in how much he can do. Silver State will not knock off $50,000 from the balance owed for a house.

"We’re see seeing some that are becoming a little bit more pushy. Probably some of that is related to increased desperation," Rhamy said. "We’re getting more and more folks saying, ‘I hired an attorney.’"

Silver State offered to modify 55 home mortgages in April but only seven borrowers agreed, he said.

Rhamy’s strategy is to keep loan rates low and deposit rates high to help financially strapped members. He doesn’t expect to bolster the financial position of Silver State at the expense of members.

Cumorah Credit Union, a privately insured credit union that serves members of the Church of Jesus Christ of Latter-day Saints, also has a 7 percent net worth ratio. The total of loans delinquent more than two months grew to $6 million from $1.4 million at year-end 2007. It holds $4.7 million in foreclosed real estate, up from $289,000 at the end of 2007.

Delinquent loans are 4.3 percent of total loans at Cumorah.

Ensign Federal Credit Union, a Henderson-based federally insured credit union for LDS church members, reported twice the percentage of bad loans as Cumorah did for the first quarter. Delinquent loans represented 10.2 percent of total loans at Ensign. Net worth at Ensign dropped to 4.7 percent from 9.3 percent a year ago.

By contrast, Nevada Federal Credit Union, the largest of the federally insured credit unions in Southern Nevada, has a net worth at 11.5 percent of total assets.

"Unfortunately, the decline in the real estate market and the decline in employment stability in our area has resulted in pretty substantial losses for us," said Brad Beal, chief executive officer of Nevada Federal Credit Union. "Nevada Federal had a very strong quarter for operations, better than last year. Our core financial accounts are up."

Contact reporter John G. Edwards at or 702-383-0420.

MGM Grand Plans To Add Retail And Dining To Its Strip Facade
MGM Grand President and Chief Operating Officer Scott Sibella said executives are “discussing redeveloping that entire frontage of the building out to the Las Vegas Strip.” (Todd Prince/Las Vegas Review-Journal)
Boyd Gaming planning new corporate campus
Casino operator Boyd Gaming Corp. has filed plans to build a new corporate campus. The plans call for two 10-story office buildings and a six-level parking garage in the southwest Las Vegas Valley. Boyd Gaming operates The Orleans, the Suncoast, downtown's California Hotel and other properties. The new headquarters would be just a mile from its current main office building.
Bellagio Conservatory transformed to celebrate Year of the Pig
The Bellagio Conservatory Team transformed the 14,000 square foot conservatory to commemorate Chinese New Year, the holiday that marks the end of the coldest days of winter. (Rachel Aston/Las Vegas Review-Journal)
CES 2019: Intro uses sound to connect people
Intro, a startup that is part of the Future Worlds Accelerator in the UK, has an app that uses ultrasonic sound to find people and companies nearby.
CES 2019 Video: CES wraps up another year
Time-lapse video of the action at CES 2019 in Las Vegas. (Mat Luschek/Las Vegas Review-Journal)
CES 2019: Create your own beauty products
Beauty Mix by BeautyByMe is a product that lets you create your own cosmetics and beauty products. (Mat Luschek/Las Vegas Review-Journal)
CES 2019: Picobrew’s home brew machine
Picobrew brings automation to homebrewing. (Mat Luschek/Las Vegas Review-Journal)
CES 2019: Surviving CES
What it's like to spend four days working the mammoth tech convention. (Jason Bracelin/Las Vegas Review-Journal)
Haier’s smart home
Haier presented smart home technology at CES 2019.
CES 2019 VIDEO: Foldimate makes laundry day easy
Foldimate has created a machine that will fold your laundry for you. Just feed it anything you need folded and it will do the rest. (Mat Luschek/Las Vegas Review-Journal)
CES 2019: Opte device corrects skin spots
Opte from Proctor and Gamble is a device for correcting spots and freckles from skin. It analyzes the area for spots and then covers them with a serum of matching skin tone. (Mat Luschek/Las Vegas Review-Journal)
Circa hotel-casino in downtown Las Vegas unveiled
Derek Stevens reveals Circa hotel-casino in downtown Las Vegas. He plans open by the end of 2020. (K.M Cannon/Las Vegas Review-Journal)
Circa, new casino coming to Fremont Street
Casino owner Derek Stevens announces his new property Circa, coming to Fremont Street in downtown Las Vegas in late 2020. (Michael Quine/Las Vegas Review-Journal)
Dreenk My Oeno makes wine suggestions
At CES 2019 in Las Vegas, the Dreenk My Oeno tells you all about wine.
Polaroid One Step Plus camera unveiled at CES 2019
Polaroid has moved into the digital age with its One Step Plus camera with Bluetooth. With the connected app, it turns your smartphone into a remote for the camera, along with filters and features.
Amazon is everywhere at CES 2019 in Las Vegas
Seemingly everything works with Amazon Alexa
LG Smart Mirror helps you dress snazzy
LG’s Smart Mirror is less of a mirror but more of an assistant to help get you looking snazzy. It takes your image and recommends clothes for you or matches existing clothes with new clothes, which can be purchased right from the mirror. (Mat Luschek/Las Vegas Review-Journal)
Underwater robots make waves at CES 2019 in Las Vegas
Robosea is a company dedicated to underwater robotics. They produce consumer robots for underwater filming as well as commercial products which can be used for underwater research. (Mat Luschek/Las Vegas Review-Journal)
CES 2019 - Victrola record players spin in Las Vegas
A new spin on an old favorite, Victrola record players are meeting a demand for retro products. The brand is also making furnitures with built-in speakers.
CES 2019: Slamtec robots ready to serve
Slamtec is a robotics company out of China whose goal is to provide solutions for laser localization mapping and navigation. They have created two autonomous robots that can be used in areas such as bars, restaurants and malls. (Mat Luschek/Las Vegas Review-Journal)
Mixologiq drink maker appears at CES 2019 in Las Vegas.
This is the Mixologiq drink maker.
CES 2019: Veritable smart garden
Let’s face it; not all of us have green thumbs. And herbs are particularly difficult to grow, considering their constant need for sunshine. Enter the Veritable smart garden from Exky, which does it all for you. (Heidi Knapp Rinella/Las Vegas Review-Journal)
Bonnie Springs Ranch near Las Vegas being sold to developer
Bonnie Springs Ranch near Las Vegas is being sold to a developer, set to close in March. Bonnie Springs, west of Las Vegas off State Route 159 — next to Spring Mountain Ranch State Park — spans more than 60 acres and was on the market for $31 million. The developer and his project partner are under contract to buy the ranch and plan to chop it up mostly into custom-home lots. The plans includes a 25-room motel, a restaurant and a 5,400-square-foot event barn.
Bone-conduction headphones form Aftershokz
Aftershokz offers bone-conduction headphones - headphones that don’t go in the ear.
CES Happy Hour party at Hangover Suite at Caesars Palace
Conventioneers mingled during the Hardware Massive CES 2019 Happy Hour Bash at The Hangover Suite at Caesars Palace in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Autonomous Cars and Futuristic Aircraft Rule CES
Day two of CES was dominated by autonomous cars and futuristic aircraft in the North Hall of the Las Vegas Convention Center.
TekNekSavr fights neck problems caused by smart phones
Atiya Syverson invented the TekNekSavr to help fight neck and head problems caused by strains while typing on smart phones. (Mat Luschek/Las Vegas Review-Journal)
New eyeglasses know if you fall and call for help
The French company Abeye has created eye glasses that will detect if the wearer falls and call for help. (Mat Luschek/Las Vegas Review-Journal)
Company that creates vibrator-like device claims genders bias against CES
Lora DiCarlo is a women-run start-up that creates a vibrator-like device designed for female pleasure called the Osé. This year they were awarded the CES Innovation Award in the Robotics and Drone Category, but a month later the Consumer Technology Association, which runs CES, rescinded the award and their booth. Haddock and her team believe it is a reflection of gender bias and sexism in an industry with a long history of male domination.
CES-Wagz has new pet products
Wagz has three new products to help create better lives for your pets in a digital world. One is a collar with LTE tracking and an HD camera. Also a smart pet door that only lets your pet in and out. Lastly, a device to humanely keep Fluffy out of certain areas of your home. (Mat Luschek/Las Vegas Review-Journal)
News Headlines
Home Front Page Footer Listing
You May Like

You May Like