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Nevada banks post lower profits, higher assets

The 18 Nevada-based banks insured by the Federal Deposit Insured Corp. posted $1.28 billion in net income through the first nine months of the year, a decline from the $1.64 billion for the same period last year and $1.63 billion in 2013.

Although net income was down, banks statewide say assets increased for the first nine months to $151.07 billion, compared to $126.4 billion last year and $136.6 billion in 2013.

Nevada banks also continued to show deposit growth for the first nine months of 2015 to $135.7 billion, up from 106.9 billion last year and $104 billion in 2013.

Employment in the banking industry also posted modest year-over-year growth, employing 3,307 people as of Sept. 30, up from 3,121 last year and 3,162 in 2013. Of the 18 FDIC-insured banks in Nevada, four reported assets of less than $100 million, while 14 had assets greater than $100 million.

Nationally, the FDIC said commercial banks and savings institutions aggregated net income of $40.4 billion for the third quarter, up $1.9 billion from the same three months a year ago. The increase in earnings was attributed to a $3.2 billion decline in noninterest expense.

“While the banking industry had another positive quarter, there are signs of growing interest-rate risk and credit risk that warrant attention,” FDIC Chairman Martin Gruenberg said in a statement announcing the third-quarter data.

Gruenberg noted that third quarter earnings were up from last year, as well as loan portfolios and asset quality improved. He said the number of problem banks decline, with only one insured institution failing last quarter.

That failed bank was Premier Bank in Denver, which was taken over on July 10, according to the FDIC.

 

Bankers group blasts NCUA proposal

Rob Nichols, president and CEO of the American Bankers Association, says he’s concerned a new proposal on credit union membership. He said the proposal will “enable credit unions to move even further away from their common bonds that define their missions.”

Under the NCUA’s proposal, the areas served by a community charter would be expanded, rural district could include up to 1 million people, and the definition of a “trade, industry or profession” would be expanded.

Even federal credit unions could expand too much larger geographical areas.

“When credit unions are allowed to have so-called common bonds like ‘lives in Montana,’ or advertise that ‘anyone can join,’ the common bond ceases to be a meaningful requirement,” Nichols said in a statement.

Nichols said the fact is there is an “enormous inequity” in the law that allows multi-billion-dollar credit unions to function just like taxpaying banks, but without paying any taxes. He said this “proposed overreach… is under the guise of regulatory relief.”

In response, the Nevada Credit Union League urged “every credit union, state and federal, big and small, to be prepared for a fight and to engage by sending comment letters” to federal lawmakers.

“Our adversaries will be making plenty of noise to oppose any attempts to strengthen the charter and have already begun to deliver statements to Congress,” said Diana Dykstra, president of the Nevada Credit Union League.

Dykstra said any improvement to the federal charter will help with changes on the state level as well. She did not comment specifically on the NCUA’s proposed changes to the charter of federal credit unions.

Among the federal credit unions operating in Southern Nevada are, SCE Federal Credit Union, Mountain America Federal Credit Union, Stage Employees Federal Credit Union, Las Vegas UP Federal Credit Union, and Navy Federal Credit Union.

 

Former CCCU boss Tew honored

Wayne Tew, who recently retired after almost three decades as president and CEO of Clark County Credit Union, was among those honored at this year’s California and Nevada Credit Union Leagues’ REACH Conference.

Tew received the league’s Distinguished Service Award, which recognizes credit union professionals’ service to the industry, particularly in the last three years. Tew, who retired in August, served as Las Vegas-based CCCU’s CEO since 1986.

He was honored for his many accomplishments, including developing a program to prepare staff for leadership roles, and his political advocacy on behalf of the industry. In accepting his award, Tew said one of the things he was most proud of was hiring great people.

He added that when he’s asked what he liked about credit unions, he said it was that he could use his business skills “in a manner that still values altruistic motives.” Tew was honored last month during the league’s annual meeting in Palm Desert, Calif.

 

Credit Union League tabs Murray

Wally Murray, president and CEO of Greater Nevada Credit Union, was named board chairman of the Nevada Credit Union League during its annual meeting last month in Palm Desert, Calif. He served as chairman during the 2014-15 year as well.

Murray has been president of Greater Nevada Credit Union since 2000 and has spent more than 26 years with the largest credit union based in Northern Nevada. Since 2005, he has also served as the CEO of the credit union’s wholly owned home lending subsidiary, Greater Nevada Mortgage.

GNCU operates 12 branches, mainly in Carson City, Sparks and Reno.

Elected as vice chairman was Eric Estes, president and CEO of Boulder Dam Credit Union in Boulder City. Rounding out the executive committee are secretary/treasurer Dennis Flannigan, president and CEO of Great Basin Federal Credit Union in Reno; Rick Schmidt, president and CEO of WestStar Credit Union in Las Vegas; and Matt Kershaw, president and CEO of Clark County Credit Union.

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