Two troubled Nevada credit unions, the $174 million WestStarCredit Union and the $157 million Cumorah Credit Union, havereplaced their CEOs.

Both Dan Paulson of the Henderson, Nev.-based WestStar and TonyMook of the Las Vegas-based Cumorah, were let go on the same day,Oct. 5. Both credit unions have labored for months under the pallof large real estate losses. Paulson and Mook have served lengthyperiods with their credit unions and as chairmen of the NevadaCredit Union League.

Their departures came in the wake of ongoing financialdifficulties for Nevada credit unions as large casinos, hotels andtheir suppliers shed employees in response to a depressedtourist-based economy. In addition to a bank failure, there havebeen two Nevada credit union purchase and assumption deals arrangedby the NCUA within the last three months.

WestStar, in replacing Paulson, named Andy Baumann, former NCUAsupervisor, as interim CEO. WestStar, known as “the gamingemployees' credit union” had lost $4.3 million in the first half ofthis year.

Baumann said he is not sure if the board fired Paulson or if heresigned but did say his own role is only temporary and thatvolunteers are searching for a permanent replacement.

“This isn't a case of a Camel 4 credit union,” Baumann said ofWestStar, noting that it had reported 8.5% net worth as of Aug. 31.“Loan losses are up from previous years, but capital is stillstrong,” he said.

WestStar has not turned a profit since December 2007, and ended2008 with a $6.4 million net loss. WestStar losses were drivenprimarily by a $4 million loan-loss provision. The credit union hascharged off roughly $2.5 million so far this year.

Paulson, who served as chairman of the Nevada league last year,has been in the CU field since 1975. He has been WestStar CEO since1997.

Meanwhile, Cumorah, which lost $7.3 million during the firsthalf of this year and held a net worth of 3.4%, said its 19-yearcredit union veteran, Mook, had resigned effective immediately. Hewas replaced by an interim CEO Paul Simons, who is currently CEO ofthe Rantoul, Ill.-based Credit Union 1.

Simons was selected by the Cumorah board with the help of itsprivate deposit insurer, American Share Insurance. American SharePresident/CEO Dennis Adams, said Mook's exit was an expeditious onefollowing “the very serious real estate challenges” that havegripped Cumorah and other Nevada credit unions for months.

Still, said Adams, he and the Cumorah board are very comfortablewith the selection of Simons, who has performed workout duty onseveral occasions over the years wearing two CEO hats.

“He is dependable, knowledgeable and has an outstandingperformance record over 35 years in credit union management,” saidAdams, adding that he was grateful the Illinois executive “couldafford this kind of short-term commitment.”

He said he had no idea how long it might take before a permanentCEO is found but that Cumorah is being put on the right track,adding that the other privately insured Nevada CUs serviced byAmerican Share all face similar challenges as Cumorah.

Both Mook and Simons had served on American Share's advisorypanels, with Mook stepping down earlier this year.

Simons told The Las Vegas Review Journal that his downstateIllinois CU has no plans to merge with Cumorah and that the Cumorahboard must now “weigh its options, hiring a permanent CEO oralternately merging with another credit union.”

He said Steele Hendrix, vice president of Cumorah, is in chargeof day-to-day operations.

Cumorah, chartered in 1965, serves members of the Church ofJesus Christ of Latter-day Saints.

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Correspondent Heather Anderson contributed to thisarticle.