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.
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Cumorah, with 15,000 members and the principal CU for Mormon Church members in Nevada, had four branches, down from four at the beginning of the year and had sliced its payroll nearly in half to save on expenses.
It was the third Nevada CU to fail since last August with good assets taken over by an out-of-state CU. The predecessor state and NCUA-orchestrated failures included America First FCU of Ogden Utah for Community First FCU of Las Vegas and United FCU of St. Joseph, Mich. the winning bidder for ClearStar Financial CU of Reno on Sept. 25.
In a statement, ASI President/CEO Dennis Adams said his firm on Friday "accepted appointment as liquidating agent of Cumorah" following a closure decision by the Nevada Division of Financial Institutions.
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