HARBOR, Ore. NCUA said the December failure of Chetco FCU, a one-time $375 million credit union, is projected to cost the agency $76.5 million in losses, making it one of the costliest credit union failure ever.
As part of a rare two-way purchase and assumption deal, Chetco’s five Oregon branches and member accounts valued at $171.9 million were purchased by Oregon’s Rogue, and the credit union’s California branch and accounts valued at $5.5 million were purchased by California’s Coast Central CU, according to information NCUA provided the Credit Union Journal today.
NCUA assumed $82.7 million of the liabilities held by Chetco under the P&A deal.
Chetco’s lone CUSO, a small servicing operation, was closed down as part of the P&A.
The losses put Chetco among the top ten costliest natural person credit union failures, along with Cal State 9 CU ($206 million); St. Paul Croatian FCU ($186 million); Huron River Area CU ($39 million); Telesis Community CU ($72 million);Eastern Financial Florida CU ($40 million) and Beehive CU ($28 million).
Chetco was the second biggest credit union failure in 2012, behind only Telesis, which had $610 million in assets at one time.