ORANGE, Texas – NCUA and state regulators shut down and closed Orange County Employees CU this morning, the one-time $4 million institution being the 13th credit union failure in 2010.
The regulators immediately assigned the assets of Orange County Employees to Sabine FCU, a $150 million credit union based in the same town, under a purchase and assumption agreement.
NCUA said the rapidly deteriorating financial condition of the credit union–it went from $4 million in assets last September to just $1.7 million at the end of the first quarter and had negative net worth--led to its closure.
Orange County Employees is the ninth credit union to be liquidated this year. Four other failures have been merged out under P&A deals.
