Credit unions suffer in quarter
Most Southern Nevada credit unions lost money in the third quarter, and none appears to be feeling more pain than the state's largest.
Losses continued to bleed the strength of Silver State Schools Credit Union, which serves about 80,000 members.
It lost $11.8 million in the third quarter on top of a $15.1 million loss in the second quarter and $9.5 million in red ink in the first quarter.
It's net capital or net worth has fallen to 4.29 percent from 8.03 percent at the start of the year. Credit union analysts consider Silver State undercapitalized at that level.
Delinquent loans represent 6.69 percent of total loans at Silver State.
Although Silver State has allotted $15.4 million for loan losses, $51.6 million in loans are past due two months or more. Another $21.3 million in loans were past due more than one month.
As a rule of thumb, credit unions analysts like to see loan loss reserves equal to the amount of delinquent loans, but Silver State's reserves fall far below its delinquent loan totals.
Members of the credit union, which includes many schoolteachers, can look to American Share Insurance, a private insurer based in Ohio, to protect their savings and checking accounts if Silver State becomes insolvent. Accounts at Silver State aren't federally insured.
Boulder Dam Credit Union, another credit union with private deposit insurance, eked out a small profit in the third quarter. Its members are primarily residents of the similarly named city.
Nevada Federal Credit Union, the largest of the federally insured credit unions in Nevada, lost $9.1 million in the third quarter, down from $9.7 million in the second quarter. Its net worth is 9.57 percent of total assets and delinquent loans equal 6.94 percent.
Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.
