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.
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