Silver State Schools Credit Union’s (SSSCU) financial results for the quarter ending March 31, 2018, reflect sustained growth and progress, as SSSCU reported its 24th consecutive quarter of positive earnings. The Credit Union reports net income of $2.19 million in the first quarter of 2018 as compared to net income of $2.80 million for the first quarter of 2017, and $2.99 million for the fourth quarter of 2017. The first quarter 2018 earnings included a charge to the provision for loan losses of $337K, compared to credits to the provision for loan losses of $255K for the first quarter of 2017 and $317K for the fourth quarter of 2017, respectively. Excluding the charge and credits to the provision for loan losses, core earnings for the first quarter of 2018 was $2.52M, as compared to $2.54M for the first quarter of 2017, and $2.67M for the fourth quarter of 2017, reflecting consistent and positive trends.
Steadily improving net interest margin, consumer loan growth, and overall asset quality contributed to the Credit Union’s most recent results. The net interest margin ratio increased from 2.98% at March 31, 2017 to 3.24% at March 31, 2018, reflecting an increase in consumer loan portfolio balances and a higher yielding loan portfolio. In addition, interest expense was lower due to a continued shift in deposit balances towards lower rate demand deposits. Due to favorable credit conditions, the total allowance for loan losses decreased from $4.3 million or 0.91% of total loans at March 31, 2017 to $2.7 million or 0.51% of total loans at March 31, 2018. During the same time period, delinquent loans as a percentage of total loans decreased from 0.61% to 0.39%.
Scott Arkills, President and CEO, noted, “We continue to experience excellent and sustainable loan growth, while improving our financial strength and asset quality performance. Our net income earnings continued to trend strongly for the first quarter of 2018, reflecting strong loan growth and demand, continued improvements in asset quality, as well as an improved net interest margin. The Credit Union continues to progress and improve each quarter as a well-capitalized financial institution, and we are pleased with and encouraged by our positive results and financial position. We look forward to building on our successful results over the last 24 quarters, as well as providing best-in-class loan programs, new innovations, and improved member services to the educational community throughout 2018 and beyond. As always, we are very grateful for the incredible loyalty of our faithful members, as well as to the dedication and support of our excellent staff, management, and Board of Directors.”
As of March 31, 2018, SSSCU reports deposits of $701 million, total assets of $774 million, and loans of $540 million. Liquidity remains strong at $98 million, and the Credit Union’s regulatory net worth stands at $69.4 million, equal to 8.97% of total assets.