Silver State Schools Credit Union CEO quits

Dave Rhamy, president and chief executive officer of Silver State Schools Credit Union for 10 years, resigned from the financially struggling institution, sources said Friday.

Silver State board chairman Mitch Fox confirmed the report but said he could not comment immediately beyond a statement, which had not been received by deadline Friday.

Rhamy reportedly intends to go into the practice of law; but he didn't respond to a call for comment.

Silver State Schools is the biggest credit union in Nevada in terms of its $883 million in assets. It has 80,000 members, including many school teachers.

It is also the second largest credit union in the country that relies on American Share Insurance, a mutual company based in Ohio, for deposit insurance. Deposits of members at Silver State aren't protected by the federal government such as some are in Nevada.

The credit union reported $36 million in losses during the first nine months of the year, as financially struggling members fell behind on loan payments.

The credit union reported $52 in loans that are past due two months or more but set aside $15 million in loan losses. It's net worth represents 4.3 percent of assets, which credit union analysts consider undercapitalized.

He is past chairman of Western Federal Corporate Credit Union and has served on its board since 1995, according to the Silver State Web site. The federal government has seized WesCorp.