Report: Las Vegas credit unions seeking merger partners

Two struggling federally insured credit unions in Las Vegas are moving toward mergers with stronger institutions, according to a trade publication.

The National Credit Union Administration, the federal agency that insures credit union deposits, has asked Sonepco Federal Credit Union and Stage Employees Federal Credit Union to select potential merger partners out of state, Credit Union Times reported Wednesday.

A spokeswoman for Stage Employees, who asked not to be identified, confirmed that the federal agency asked the credit union to identify three potential merger partners. Sonepco Chief Executive Sue Longson couldn't be reached for comment.

Longson told the trade publication that Sonepco is seeking to identify merger partners. Sonepco serves NV Energy employees and family members. It has 5,000 members.

Stage Employees serves 1,200 members of the International Alliance of Theatrical Stage Employees, Moving Picture Technicians, Artists and Associated Crafts, and their family members. Many work at shows on the Strip.

A National Credit Union Administration spokesman stressed the protection afforded members by federal deposit insurance.

"It is important to note that consumer deposits at federally insured credit unions are protected up to $250,000, including deposits at any credit union who may potentially merge or merges with another credit union," administration spokesman David Small said in an email.

"While it is not uncommon for NCUA to ask a credit union to build a contingency plan for any potential merger, I couldn't say if we asked that in this case," he said.

The Stage Employees' spokeswoman said she remains hopeful the credit union can work out its financial problems and avoid a merger.

"They have not said to us that we have to merge," the spokeswoman said.

Although failing banks are seized and then sold to a stronger bank, the administration tries to find a strong member-owned credit union to merge with a troubled credit union. Credit unions typically try to merge with institutions that have financial strength to handle additional liabilities, similar fields of members and geographic closeness.

Stage Employees' net worth has dwindled as members, some of which were unemployed because of the recession, became past due on loans.

The credit union, one of Nevada's smallest, has $14.6 million in assets. It lost $17,000 in the first quarter and $428,000 last year. It's net worth is 4 percent of total assets.

The company has cut expenses, and its employees are getting paid for shortened 32-hour workweeks, the spokeswoman said.

Sonepco has $60 million in assets and its net worth is 6.9 percent of total assets. It lost $206,000 in the first quarter but posted net income of $43,000 last year.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.