In a move projected weeks ago, another Nevada credit union, the $147 million Cumorah CU of Las Vegas collapsed over the weekend becoming the first major privately-insured CU to fall victim to the recession.
The buyer, arranged by the insurer American Mutual Share Insurance of Dublin, Ohio, was the $575 million Credit Union 1 of Rantoul, Ill. whose president/CEO, Paul Simons only became interim/CEO on Oct. 5, following the sudden resignation of its longtime head, Tony Mook.
According to Simons and other industry officials, Cumorah had been plagued by bad real estate loans particularly in its commercial portfolio. It had been posting losses for months and most recently recorded a $12 million loss for the first three quarters of the year with 3.4% net worth.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.