Coast Central Credit Union will take over the last Chetco Federal Credit Union branch remaining in California, the National Credit Union Administration announced Friday.
The liquidation of the Harbor, Ore.-based credit union will take effect Monday, according to an NCUA press release. The Eureka-based Coast Central Credit Union will reopen CFCU’s branch in Crescent City on Jan. 2 and take over any remaining California memberships.
Medford-based Rogue Federal Credit Union will purchase CFCU’s memberships and five branches in Oregon on Jan. 2, according to the NCUA.
NCUA’s decision to liquidate and close CFCU comes after it placed the credit union into conservatorship in September 2011 to protect its financial stability and operations. Since then the Smith River and Klamath branches have closed, employees have been laid off and members’ loans were sold as part of a reorganization of the credit union.
NCUA chose to liquidate and discontinue operations at Chetco Federal Credit Union after determining it was insolvent and could not continue to operate on its own, according to the press release. NCUA has liquidated 14 federally insured credit unions in 2012.
At the time of liquidation, Chetco Federal Credit Union served 24,926 members and had approximately $259 million in deposits, according to the release. Chetco Federal Credit Union was chartered in 1957 and served Coos and Curry counties in Oregon as well as Del Norte County.
Coast Central Credit Union is state-chartered and federally insured with roughly 55,000 members and $960 million in assets. Rogue Federal Credit Union has roughly 56,000 members and $583 million in assets, according to NCUA.
The accounts of the new Rogue and Coast Central Credit Union members will remain federally insured by the National Credit Union Share Insurance Fund for up to $250,000. The NCUA administers the fund, which has the backing of the full faith and credit of the U.S. government.