SAN JOSE, Calif. – NCUA has appointed Matthew Davidson, long-time executive with the California CU League who headed one of the agency’s biggest conservatorships in the 1990s, to manage Valley CU, the troubled $255 million credit union it took over Tuesday.
Davidson spent 15 years as an executive with the California league before going to work as chief operating officer of $4 billion San Diego County CU. Among his experience was manager for Progressive Consumers CU, one of the biggest credit union takeovers of the 1990s.
Valley CU, which had $310 million in assets as recently as mid-year 2007, reported some of the biggest losses in the country for 2007, $6.9 million, and for mid-year 2008, $5.8 million, with net capital just over the regulatory minimum of 5%. The credit union reported high delinquencies in its ARM portfolio, especially in its Interest Only & Payment Option 1st Mtg Loans.
A story in yesterday Credit Union Journal Daily Briefing incorrectly stated Valley CU had troubles in its member business loan portfolio. Valley CU had zero delinquent member business loans.
