Silver State Schools Credit Union’s (SSSCU) financial results for the quarter ending December 31, 2017, reflect sustained progress, as SSSCU reported its 23rd consecutive quarter of positive earnings. The Credit Union reports net income of $2.99 million in the fourth quarter of 2017 and net income for the year ended December 31, 2017 of $11.35 million. In 2016, the Credit Union reported fourth quarter earnings of $4.82 million and net income for the year ended December 31, 2016 of $14.98 million. The year-end 2017 and 2016 earnings included a credit to the provision for loan losses of $572K and $4.78 million, respectively. Excluding the credits to the provision for loans losses, core earnings for year-end 2017 were $10.8 million, exceeding the year-end 2016 core earnings of $10.2 million.
Steadily improving net interest margin, consumer loan growth, and asset quality all contributed to the Credit Union’s most recent results. The net interest margin ratio increased from 2.92% at December 31, 2016 to 3.12% at December 31, 2017, 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 $4.8 million or 1.01% of total loans at December 31, 2016 to $2.8 million or 0.53% of total loans at December 31, 2017. During the same time period, delinquent loans as a percentage of total loans decreased from 0.76% to 0.55%. As a result of continuing improved credit quality, as well as low delinquency and stability in the underlying collateral valuations in the Las Vegas market, the Credit Union was not required to fund additional amounts into its Allowance for Loan Losses account during the fourth quarter.
Scott Arkills, President & CEO, noted, “We continue to experience consistent and sustainable loan growth, while improving our financial strength and performance. Our net income earnings continued to trend strongly for the fourth quarter of 2017, reflecting excellent loan growth and continued improvements in asset quality as well as an improved net interest margin. The Credit Union continues to greatly improve each quarter as a well-capitalized financial institution, and we are pleased with and encouraged by our positive results and financial position throughout 2017. We look forward to building on our successful results over the last 23 quarters, as well as providing best-in-class loan programs, new innovations and improved member services to the educational community in 2018 and beyond. The outstanding success of SSSCU during 2017 is a testament to our incredibly loyal and faithful members, as well as to the dedication and support of our excellent staff, management, and Board of Directors.”
As of December 31, 2017, SSSCU reports deposits of $682 million, total assets of $753 million, and loans of $524 million. Liquidity remains strong at $90 million, and the Credit Union’s regulatory net worth stands at $67.2 million, equal to 8.92% of total assets.