Friday, August 24, 2012

Chetco Update

Eleven months have elapsed, since NCUA placed Chetco Federal Credit Union of Harbor, Oregon into conservatorship on September 23, 2011.

However, the following two slides show that the financial picture at Chetco continued to deteriorate after being conserved by NCUA.

For the third consecutive quarter, Chetco FCU reported a negative net worth position and it has been critically undercapitalized for four consecutive quarters.

In addition, Chetco reported that over $68 million of its loans or 25.6 percent of its loan portfolio was 60 days or more past due at the end of the second quarter. Almost half of its loans ($33.5 million) were 12 months or more past due, as of June 2012.



Given it financial picture, it is highly unlikely that Chetco will be restored to viability. The time has come for NCUA to end its regulatory forbearance and to close Chetco.
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3 comments:

  1. AnonymousAugust 25, 2012 at 9:20 AM

    What would you expect from our regulator who pretends that the credit union situation is getting better while the number of camel 4and 5 credit union is at a peak level and they represent $30 billion in assets ... Think about that number and then look up what the total equity is in credit unions, then divide.
    Then, add in the smoke and mirror - kick the can- of the corp debacle.
    Then watch the video of just how good everything is that was released yesterday.
    Needs to be investigated by congress.
    How do they get away with it...is the 2nd most popular question next to why does Cuna let them get away with it...and right up there with...do they REALLY think they're fooling us?

    ReplyDelete
  2. AnonymousAugust 27, 2012 at 1:18 AM

    Why so harsh? So they have a net worth that is over $18 Million NEGATIVE. Delinquency is up. They fully intend to make it up in volume and the NCUA will provide all the help. If the experiment goes kaput the NCUA can always raise the assessments for the others to pay. Has the NCUA filed any criminal complaint against the former Chetco CEO? Name change...should be CHEATCO.

    ReplyDelete
  3. AnonymousAugust 28, 2012 at 11:48 PM

    I am GLATT they fired the previous CEO & her credit union consulting/insulting husband.

    ReplyDelete

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