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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