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CU System
Silver State Schools CU gets infusion from ASI
LAS VEGAS (2/22/10)--Silver State Schools CU has received a capital infusion to bolster its general reserves from its private share insurer, announced President/CEO Dave Rhamy. In a bulletin to members on the credit union's website Thursday, noted the credit union's plan, announced in December, "to immediately increase our reserves through a cooperative effort with our deposit insurance provider. "I am pleased to announce that we have successfully completed this transaction," Rhamy said. "This capital infusion bolsters our general reserves now, and positions us to continue to help our members as we move forward." A specific amount was not mentioned, but a local newspaper said the state's largest credit union had received $22 million from its insurer, Ohio-based American Share Insurance (ASI) (Las Vegas Review-Journal Feb. 19). On the credit union's website, Rhamy said the credit union has "seen periodic downturns in the national economy, but certainly nothing compares to the past two years." In 2008, the credit union reported a record $10 million net income from operations but set aside $10 million in reserves for potential loan losses, Rhamy said. During 2009, as property values continued to ecline and record numbers of members experienced reduced income, the credit union recorded $8.1 million net income from operations but set aside $59 million to cover current and potential future loan losses. "We have plans to replace those set asides, but the replacement rate will be slow given the continued sluggish economic recovery," he said. According to the local newspaper, local banking professionals said the collaborative effort is "extremely unusual and possibly unique." Nevada is one of five states hit hardest by the recession. The 60-year-old credit union serves primarily teachers and their families.


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