ALEXANDRIA, Va. NCUA said today that last year’s liquidation of Telesis Community CU, the year’s biggest failure, is projected to cost the National CU Share Insurance Fund losses of around $72 million, most of it on bad member business loans made by the one-time $615 million Chatsworth, California, credit union.
NCUA put $177 million of guarantees into a purchase and assumption agreement with Premier America CU, under which the nearby $1.3 billion credit union purchased member accounts, facilities and consumer loans held by Telesis. NCUA assumed $205 million in Telesis assets, including $162 million in member business loans, most of them being serviced by the Telesis’s CUSO Business Partners LLC. NCUA also assumed $22 million of Telesis real estate loans and $21 million of other assets under the P&A.
NCUA recently sold Business Partners to three of its original 16 partners. The agency declined to disclose the purchase price, saying public disclosure is barred under the purchase agreement.
NCUA is also working on the sale of Telesis’s Autoland car buying CUSO.