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twitterCumorah Credit Union seized by state regulators
Deposits and assets being acquired by Credit Union 1
Friday, Oct. 23, 2009 | 7:14 p.m.
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Sun Coverage
Cumorah Credit Union was seized by state regulators on Friday, and American Share Insurance has been appointed as its receiver.
The credit union, with 15,000 members, had two offices in Las Vegas and two in Henderson. It had $147 million in assets and $129 million in deposits.
All deposits and assets are being acquired by Credit Union 1, a $574 million institution based in Rantoul, Ill.
“We want to assure Cumorah members that their accounts are protected up to $250,000 through American Share Insurance, a credit union-owned insurance fund,” said Financial Institutions Commissioner George Burns.
The Nevada Financial Institutions Division found that the credit union had poor asset quality, poor liquidity, inadequate earnings, was critically undercapitalized and had excessive loan risk.
Cumorah members will still be able to bank at their branches, and normal business hours will be kept at all offices. Members can access their accounts by writing checks or using ATM or debit cards.
Checks drawn on the credit union will continue to be processed as a normal course of business. Members with loans should continue to make their payments as usual, the state said.
Cumorah had a troubled asset ratio of 69.6 percent, according to BankTracker, a project by the Investigative Reporting Workshop at American University.
The ratio is determined by a number of factors, comparing its capital and loan loss reserves to loans no longer being paid.
“Due to inadequate capital and mounting loan losses, it was necessary to take possession of Cumorah Credit Union and appoint ASI as receiver to facilitate the merger with Credit Union 1,” Burns said. “We are committed to making sure Nevada’s financial institutions continue to be fundamentally safe and sound.”
The credit union was founded in 1965 and served members of the Church of Jesus Christ of Latter-day Saints living in Nevada.
Cumorah was the second credit union to be closed this year in Las Vegas, Community One Credit Union being the first.
Discussion: 29 comments so far…
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What's Missing:
Just WHO do you think is on the "Board of Directors"
and
WHO got "special loans"...
(Serving WHO in Nevada "...since 1965...". ...Really?)
Comment removed by staff. Violates reader agreement.
Comment removed by staff.
Wow - hate on this comment board! Maybe the Mormons will come and show you what true hell is!
The best people I know are Mormons.
Comment removed by staff. Violates reader agreement.
This has a real stink to it. Particularly suspicious is the effort to blame the media and proclaim the boat was sound after the boat had sprung a massive leak.
Why do mormons always blame the media and antimormon sentiment when their financial institutions fail.
wizard -- care to clarify that tongue-in-cheek but incoherent post?
nednougat -- c'mon, you're better than this.
mwh710 -- put a muzzle on it. Your Bigot Badge doesn't cut you that much slack.
Acts 8:20
Peter answered: "May your money perish with you, because you thought you could buy the gift of God with money!
blood -- what can that possibly have to do with anything here?
Wow....what is the deal with the general hatred towards Mormons? Anyone who believes they are a cult are obviously ignorant and live with a goal to slander those who don't share in their belief system. The fact of the matter is that just because Cummorah catered its' business to members of the LDS church, doesn't mean they are immune to the economic hardships that are effecting ALL of Las Vegas. Here is a bit of trivia. Mormons are human beings just like everyone else and are privy to the same mistakes as everyone else. It is just a shame that good people might have to join the ranks of the unemployed because of some poor decisions of some key players, who may or may not be Mormon, but are indeed human beings just like everyone else commenting on this board.
Why would you name a credit union Cummorah. Sounds like a porn star name.
KillerB:
Maybe you would like to clarify these comments you made on 10/24/09:
"...American government at every level is in a frenzy to criminalize almost all private behavior, Constitutional limits don't even get a mention anymore. As the hostility here shows the People are the biggest problem -- their "the law is the law" attitude is the flip side of government's moving us to a complete police state...."
__
Gee, if we all went by your above comment, perhaps the state regulators should have let this private organization go under and let 15,000 members lose $129 million in deposits.
__
Since you asked:
The troubled asset ratio was 69.9%, the Nevada Financial Institutions Division found that the credit union had poor asset quality, poor liquidity, inadequate earnings, was critically undercapitalized and had excessive loan risk.
The questions I asked are valid BUSINESS questions.
WHO'S ON THEIR BOARD, AND RESPONSIBLE.
WERE THERE ANY CONFLICT OF INTEREST OR FAVORITISM LOANS DUE TO THE BAD ASSET QUALITY.
DID THE BOARD INFORM THEIR MEMBERS HOW BAD IT WAS, OR DID THEY HIDE THAT FACT FOR PARTICULAR REASONS SINCE THE MEMBERS TRUSTED THE BOARD TO RUN THE CREDIT UNION COMPETENTLY, SINCE 1965.
Take a few senior executive Board level business classes. These are the first topics covered.
Instead of rescue seizures, some would prefer to see these cult organizations go broke upon their own accord.
: )
Ha ha! You guys that go well out of your way to insult Mormons crack me up. Oh ye haters! :) How 'bout having a tad more love and Christian-like attitude? Is everybody in YOUR church this ignorant and mean?
KillerB
to answer your question:
Put your trust in Jesus Christ, not in money.
wizard -- thanx for clarifying. I'll decline your offer for classes.
As for yours, sure I'll return the favor if you first explain how it's even remotely relevant here.
blood -- spoken like someone who rubs lamps for wishes to come true. I'll pass, since Jesus doesn't get the rent paid.
Comment removed by staff. Violates reader agreement.
mwh710:
Well I don't what the hell sheeple are, but by your comment, it is easy to see that you very well could be at least mentally retarded. Good luck with the rest of your life!
mwh710 -- it's one thing to be an ignorant bigot (now there's a redundancy), it's quite another to watch you prove it. You are completely irrelevant here or anywhere else.
Here's an email I sent them---
I know this is probably a hard time for you guys still working at the former Cumorah offices, but you're going to bleed customers pretty fast after the complete and utter deception put on recently:
The current spin at Cumorah is that they have a "new partnership between Cumorah and Credit Union 1." This is completely nonsense when the NV DFI closed the credit union and then apointed ASI receiver. Not only is it a lie, but also the deception over the last year with quotes like this in your own newsletter:
Fall 2008:
"That decision [to avoid the subprime market], along with other prudent practices on the part of Cumorah Management, Board of Directors and Employees, is now proving its worth as Cumorah remains financial strong and here to stay."
Sure - Subprime was avoided, but lets continue on...
"Our total assets are over $180 million, and in combination with our capital and conservative operations, are more than adequate to absorb unusual and even extended losses."
When DFI seized the credit union, it had $147M in assets. Only $33M difference from before... so what they heck were the unmentioned liabilities back around 9/2008 and just recently during the seizure????
The CU sure was able to absorb "unusual and even extended losses"....
"Last quarter I commented that we're doing well in spite of the local economy. We're still strong and we are here to stay." - Tony Mook, CEO
Thank goodness Tony is gone, because that was a complete lie at the time and he knew it.
Winter 2009: (2008-2009)
"We are financially strong and will stay that way." - Tony Mook
Only 10 months later -- seized by the regulator. Once again CEO Mook intentionally was deceiving credit union members.
Best of luck to those who are still left after all the layoffs and location closures -- nobody wants to be unemployed right now. The credit union has lost my future business just because of the lies and deception put on by management over the last few years.
I've really got to question that acquisition of Kolob a few years back..... wow that was stupid.
Wow, I guess if mwh710's post are allowed on this site...than that opens the door for hate talk on jews, gays, blacks, hispanics, whites, asians or any form of mankind.
If this freak of nature said these things about gays, sun readers and writers would have went through the roof!
So how many credit unions are left in Nevada ??
I heard this credit union is where Warren Jeffs had all his cash stowed. Maybe he transferred all his money and this hurt the credit union.
Community one was taken over by a Utah basaed CU, that is in good financial shape.
not mr family values????
haha!
i LOVE it.
anything that shoves a little reality into the faces of the followers of that stupid, out-dated belief system is awesome.
you can't spell "mormon" without "moron".
people hate mormons because mormons actively and aggressively try to push their beliefs onto other people.
they were massively organized to fight gay marriage in california.
i don't care if you think gay marriage is right or wrong, but when YOU decide your "way" is right and the other way is wrong, and in a FREE society you think you should have rights, but the other guy shouldn't...
that's why people hate you.
stevem -- so far only you and a couple of other posters are showing hate. And you express it like juveniles -- you have no credibility.
i don't hate mormons...
i just shut the door when they come knocking.