Chetco FCU Liquidates; Two CUs Pick Up Pieces
HARBOR, Ore. – NCUA liquidated Chetco FCU on Friday night and assigned the remnants of the one-time $375-million credit union, the year’s 21st failure, to two West Coast credit unions in an unprecedented purchase and assumption agreement.
Under the deal, Oregon’s Rogue FCU will purchase and assume Chetco’s five Oregon branches and memberships, and California’s Coast Central CU will purchase and assume the Crescent City branch and California memberships.
Rogue and Coast Central will reopen Chetco’s former Oregon and California branches, respectively, Jan. 2, 2013.
NCUA has operated Chetco, chartered in 1957 to serve people who live, work or worship in Coos and Curry counties in Oregon and Del Norte County in California, under conservatorship since Sept. 23, 2011. Chetco has reported losses of $17 million for 2010, $35 million for 2011 and $525,000 for the first three quarters of 2012.
Chetco is the year’s second-biggest credit union failure, behind only $610-million Telesis Community CU.