CHATSWORTH, Calif. – NCUA announced this morning it has liquidated Telesis Community CU and assigned the remnants of one of the biggest member business lending credit unions in the country to nearby Premier America CU in a purchase and assumption deal.
The $1.3 billion Premier America has been running the one-time $615 million Telesis under a management contract with NCUA since the credit union regulator took Telesis under conservatorship in April.
Telesis, which now has $300 million in assets, is the ninth credit union failure so far this year.
The California Department of Financial Institutions made the decision to liquidate Telesis and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations on its own. Telesis lost $13.7 million for the first quarter of 2012 and lost $7.7 million in 2011, and its net worth ratio had declined to below 1% at March 31.
