Saturday, September 24, 2011

Chetco FCU Placed into Conservatorship

The National Credit Union Administration (NCUA) assumed control of service and operations at Chetco Federal Credit Union of Harbor, Ore.

Chetco FCU had approximately $333 million in assets at the end of June 2011.

Chetco FCU reported a loss of almost $17 million for 2010 and a loss of $212,215 for the first six months of 2011.

As of the end of June 2011, the credit union was undercapitalized with a net worth ratio of 5.02 percent. Chetco reported that $57.8 million in loans that were 60 days past due or 19.02 percent of its loans were delinquent.

Part of Chetco's problems arose from loan participations. Chetco FCU had $70.5 million in outstanding loan participations (about 23 percent of its loan portfolio) and almost 17.5 percent of these loan participations were delinquent.

The credit union reported holding $10.1 million in foreclosed real estate loans.

Read the press release.

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