SAN JOSE, Calif. – State regulators said last night they have taken over troubled Valley CU, which will be run under conservatorship by NCUA.
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The one time $310 million credit union has been plagued by troubles in its member business loan portfolio and reported a $5.8 million loss for the first half of the year, one of the biggest losses in the country.
The Valley CU takeover follows recent conservatorships of Cal State 9 CU and Sterlent CU. Both credit unions were eventually liquidated by NCUA and their remnants sold off to San Francisco credit union giant Patelco CU.
Valley CU was chartered in 1953 and serves Alameda, Contra Costa, and Santa Clara Counties and now has $257 million in assets and nearly 26,900 members.
