Federal regulators have taken over the Chetco Federal Credit Union in the town of Harbor, on the Southwest Oregon Coast.
The National Credit Union Administration kept Chetco open and installed new management. The agency offered few details as to why it put the credit union into conservatorship on Friday, saying in a press release that new management’s mission will be “correcting previous service and operational weaknesses.”
Chetco is the second Oregon credit union to be taken over by the NCUA in the last four months. In June, regulators put O.U.R. Federal Credit Union in Eugene into conservatorship.
Chetco has $333 million in assets. It lost $212,215 in the quarter ended in June, its fourth money-losing quarter in the last five. The credit union’s provision for loan losses soared more than 200 percent, to $17.9 million at the end of 2010.
Chetco has eight branches and more than 32,000 members in Curry and Coos County in Oregon and Del Norte County in California.
For more information please visit the National Credit Union Administration (NCUA) web site for Chetco Federal Credit Union.