HARBOR, Ore. – NCUA said this afternoon that Chetco FCU, the one-time $375 million credit union it has been running under conservatorship since last September, lost a staggering $20 million in the first quarter, extinguishing all of its capital and undivided earnings.
Chetco, which now serves the surrounding Oregon counties of Coos and Curry and Del Norte County in northern California, ended the first quarter with zero reserves and negative $18 million of undivided earnings. Assets had declined all the way to $266 million.
NCUA says a major part of the new losses are related to additional allowance for loan losses added in the first quarter.
Chetco, which lost $16 million in 2011, is one of a handful of large troubled credit unions being run under conservatorship by NCUA, including Texans CU, Arizona's AEA FCU, California’s Arrowhead Central CU and Telesis Community CU and Keys FCU in Key West, Fla.
