DUBLIN, OH (July 30, 2014) -- American Share Insurance (ASI) announced today that its capital assistance plan to aid the Silver State Schools Credit Union in Las Vegas, has proven to be the “best practice” for preserving a state charter while also being the least-cost solution to the insurance fund. This past week, the credit union reported its ninth consecutive quarter of positive net earnings for the period ending June 30, 2014, and a regulatory net worth ratio of 7.25%. As a result of the progress made since July 2011 under the leadership of Andy Hunter, CEO, and working within a restructuring plan that was first implemented in 2010, the credit union made its initial $2.2 million payment (plus interest) in late July 2014 against the secondary capital plan instituted by ASI to save the credit union.
“The credit union has come a long way thanks to the commitment of a solid management team and a steady and devoted board of directors,” ASI President/CEO Dennis Adams reported. “Silver State Schools Credit Union is a clear example of how a private sector, credit union-owned program can work cooperatively with credit unions and state regulators, to effectively and efficiently save one of its largest member credit unions during one of the worst economies since the Great Depression by applying fundamental common sense business principles and not dictates,” he added.
Under ASI’s capital assistance plan, the credit union is to make 12 such installments while sustaining its regulatory net worth ratio at or above that of an adequately capitalized credit union, or 6.00%. Adams noted that, “This is a significant moment for private share insurance, as an assistance program we have used effectively since the late 1980s has succeeded again for the benefit of almost 60,000 members of this education-based credit union.”
ASI is a credit union-owned share guaranty corporation insuring state-chartered credit unions in nine states nationally, providing $250,000 of coverage per individual member account, without the need to creatively restructure member accounts to secure such broad coverage. The corporation is subject to dual regulation in its state of domicile by the Ohio Departments of Commerce and Insurance, and licensed by the Ohio Department of Insurance. Accounts insured by ASI are not insured by the federal government, nor are ASI-insured credit unions subject to regulatory oversight by the National Credit Union Administration (NCUA).