Saturday, December 29, 2012

Chetco Closed by NCUA

The National Credit Union Administration (NCUA) announced the liquidation of Chetco Federal Credit Union (Chetco) effective December 31. Business loans played a significant role in the credit union's liquidation.

Rogue Federal Credit Union (Rogue) of Medford, Oregon will purchase and assume Chetco’s five Oregon branches and memberships and Coast Central Credit Union (Coast Central) of Eureka, California will purchase and assume the Crescent City branch and California memberships.

NCUA placed Chetco into conservatorship on September 23, 2011 and made the decision to liquidate Chetco and discontinue its operations after determining the credit union was insolvent with no prospect for restoring viable operations on its own.

Chetco had a net worth ratio of minus 7.31 percent as of September 30, 2012. The credit union reported 23.81 percent of its loans were 60 days or more delinquent. Over half ($33 million) of the $60.2 million in delinquent loans were member business loans.

At the time of liquidation, Chetco served 24,926 members and had approximately $259 million in deposits.

Chetco is the fourteenth federally insured credit union liquidation in 2012. NCUA did not disclose the cost of Chetco's failure to the NCUSIF.

Read the press release.
Posted by at
Labels:

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.