CUDAHY, Wis. – Prime Financial CU on Thursday was cut loose by state regulators, who had operated the troubled one-time $200 million credit union under conservatorship since last March.
The credit union, one of the main investors in the now-defunct Central States Mortgage Co., broke into the black to the tune of $270,000 for the first quarter of 2010 after wracking up losses of $8 million in 2008 and $9.6 million in 2009. Since then its assets have been trimmed to just $145 million.
Prime Financial, chartered in 1923, was poised to merge into Guardian CU when state regulators and NCUA scotched the merger and fired Prime Financial’s long-time CEO Rich Koenig because of the institution’s declining financial condition.
The Wisconsin Office of CUs, which took over the ailing credit union in March 2009, said Christine Dawe, who was appointed by the state as interim CEO of Prime Financial last year, will continue to lead the credit union as it returns to normal operations.
“We are pleased to be able to return control of Prime Financial to its member Board,” said Suzanne Cowan, director of the Office of CUs, part of the state Department of Financial Institutions. “We will work closely with them to ensure they continue to operate in a safe and sound manner.”
