Once considered a failed CU, the $144 million Prime Financial Credit Union of Cudahy, Wis., is back on its feet this month-pulled out of conservatorship by the state after a new management team and board restored "normal operations."
The suburban Milwaukee CU had been under regulatory control since March 2009. Like nearly two-dozen other small Wisconsin and Illinois CUs, it had invested in Central States Mortgage Corp., an industry-run CUSO that got into financial quicksand with faulty mortgage loans, including subprime.
In addition to a new board, Prime Financial said in a press statement it now has "a more stable market position and a clear path to build additional strength in the future."
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Christine Dawe, who was appointed by the state as interim CEO last year, will continue to lead the CU, the statement said.
"We have worked hard in partnership with the National Credit Union Administration, the state, our employees and our members to strengthen Prime Financial's overall position and performance," Dawe said. "Resuming independent operations with a new member board is a significant milestone. As we celebrate today's news, we recognize there is more work to be done.
"We are confident that Prime Financial can build on this success and the foundation we've laid over the past 14 months as we move forward."
Suzanne Cowan, director of the Wisconsin Office of Credit Unions, said the agency intends to work closely with the new management "to ensure they continue to operate in a safe and sound manner."
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