California regulators said late Wednesday that they have taken over Valley Credit Union in San Jose, which will be run under conservatorship by the National Credit Union Administration.
The credit union, plagued by delinquencies in its member business loan portfolio, reported a first-half loss of $5.8 million. It has about $244 million of assets and serves nearly 27,000 members, according to the California Department of Financial Institutions.
The takeover of Valley follows recent conservatorships of Cal State 9 Credit Union and Sterlent Credit Union, both of which were eventually liquidated by the NCUA with their remnants sold off to Patelco Credit Union in San Francisco.
Chartered in 1953, Valley serves Alameda, Contra Costa, and Santa Clara counties.
