PLEASANTON, Calif. – NCUA said yesterday it has liquidated failed Sterlent CU and nearby Patelco CU has agreed to acquire the remnants of the one-time $125 million credit union.
The $4 billion San Francisco-based Patelco agreed earlier to acquire the remnants of Cal State 9 CU, another failed area credit union.
Like several other California credit unions, Sterlent was hurt by a large mortgage loan portfolio, mostly home equity loans, which failed as the local economy teetered.
The credit union lost almost 20% of its assets over the last 12 months, while accruing huge losses, $4.8 million for 2007, then a whopping $5.5 million for the first quarter, erasing all of its equity. At the end of the first quarter Sterlent had negative equity of $292,000.
At the time of liquidation, the credit union had approximately $94.6 million in assets. Sterlent CU was established in 1936 as EBTEL FCU and became a state-chartered credit union in 2002.
