ALEXANDRIA, Va. (3/26/12)--The California Department of Financial Institutions Friday placed Telesis Community CU into conservatorship and immediately appointed the National Credit Union Administration (NCUA) as conservator. Also on Friday, the Colorado Division of Financial Services appointed the NCUA as liquidating agent of Saguache County CU of Moffat, Colo.
The California regulator placed Telesis Community into conservatorship due to a declining financial condition.
In response to a question, the NCUA said no one problem led to the decision to conserve Telesis Community. The conservatorship resulted from "many problems."
The NCUA noted that, as detailed in the credit union's 2011 year-end Call Report, some of these problems relate to a low net worth ratio, negative returns on average assets, high loan delinquencies and charge-offs, high operating expenses, and many foreclosed and repossessed assets. The California economy also affected the credit union.
Under the NCUA's conservatorship, the state-chartered, federally insured credit union headquartered in Chatsworth will be able to continue providing services to members without interruption, and members can continue to conduct normal financial transactions.
The Federal Credit Union Act authorizes the NCUA board to accept appointment as conservator when necessary to conserve the assets of a federally insured credit union, protect members' interests, or protect the National Credit Union Share Insurance Fund. Telesis Community Credit Union is the third federally insured credit union placed into conservatorship during 2012.
Telesis Community was chartered in 1965. It has more than 37,600 members and assets reported at $318.3 million.
In Colorado, immediately following appointment of the NCUA as liquidating agent of Saguache County, the NCUA entered into an agreement with Aventa CU of Colorado Springs to purchase and assume membership shares and certain assets of Saguache County.
The state regulator decided to liquidate the $17 million-assets and 3,185-member credit union after determining the credit union was insolvent with no prospect for restoring viable operations. Purchasing Aventa has $135 million in assets and 18,100 members.
Chartered in 1996, Saguache County served people living in Saguache County and those who lived in Rio Grande or Alamosa counties and belonged to a cooperative.
Saguache County Credit Union is the third federally insured credit union liquidation in 2012.