Silver State Schools Credit Union may cut more

A key official on Wednesday predicted that more cost cutting was ahead for Silver State Schools Credit Union, following the appointment of a new credit union chief executive officer.

Silver State Schools, the largest credit union in Nevada, on Tuesday announced that Dave Rhamy was leaving the credit union to devote more time to his law practice.

The credit union said Andrew Hunter, 61, former CEO of a giant credit union in San Francisco, will replace the 55-year-old Rhamy effective July 11.

"I do not think the cost-cutting has been exhausted," said Dennis Adams, chief executive officer of American Share Insurance of Dublin, Ohio.

The mutual insurer backs deposits at Silver State and three other Southern Nevada credit unions.

"I think everybody in today's economy is constantly watching costs," Adams said.

The credit union in May said it would cut salaries of its 230 employees by 2 percent starting in September.

Adams expressed satisfaction with the improvements that Rhamy made over the last 18 months.

"I think they are going in the right direction. I think they are doing fine," Adams said.

He also supported Hunter's appointment as CEO, citing the Californian's good reputation and experience.

"I think the leadership will bring a new perspective. Sometimes that's a good thing," Adams said.

In a telephone interview Wednesday, Hunter said he will be unable to make decisions about operations, staffing and other management issues until he becomes CEO.

"I'm certainly aware of the situation here and I'm looking forward to the challenge," Hunter said.

"I'm excited to be in this position," he added.

Silver State is one of Nevada's most financially ill credit unions. It reported $29.7 million in net worth or 4.3 percent of total assets as of March 31, but $22 million of that comes in the form of a subordinated loan made by American Shares in February 2010.

Without the loan, Silver State's net worth would represent a paper-thin 1 percent of total assets. The institution has $44 million in loans that are past due more than two months. It made a $90,000 profit in the first quarter, ending a string of nine consecutive quarters of losses.

Silver State has 12 branches in Las Vegas and one in Reno for its 64,000 members.

Hunter will be attuned to the needs of the credit union and its members, Adams said. Since receiving a master's of business administration from the University of California, Riverside, Hunter said he has worked only for credit unions and credit union organizations, including the California League of Credit Unions.

He was CEO at $3.7 billion-asset Patelco Credit Union in San Francisco for six and one-half years, overseeing its conversion from private American Share Insurance to federal regulation under the National Credit Union Administration. That was done so that Patelco could merge with other credit unions, but Hunter said he does not expect Silver State to convert to federal insurance and regulation from private insurance at American Shares.

Hunter held executive positions at the Western Corporate Credit Union, now known as United Resources Federal Credit Union in San Dimas, Calif., and at the Orange County Teachers Federal Credit Union.

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