Regulators seized a three-branch credit union in California last week, funneling accounts to a credit union in North Carolina.
The National Credit Union Administration liquidated Bakersfield, Calif.-based Kern Central Credit Union on Jan. 8, assigning its assets and liabilities to Raleigh, N.C.-based Self-Help Federal Credit Union. Of Kern Central’s $35 million in assets, $20 million were auto loans.
Kern Central largely served central California construction and farm workers, many of whom were hard-hit by the recession.
In the past 18 months, Self-Help CU has taken over three other credit unions. It is part of the Community Center for Self Help, a nonprofit group that runs the Center for Responsible Lending.
Meanwhile, another Kern County, Calif., credit union — Kern Schools Federal Credit Union — is working to tackle its financial trouble. KSFCU lost $24 million in 2008, and $35 million in the first nine months of 2009. Per an agreement with NCUA, the $1.7 billion credit union has two years to raise its net worth-to-assets ratio to 7%, from 5% as of June 30, 2009.
KSFCU is among the largest auto financiers in the nation. It had $658 million of auto loans outstanding at yearend 2008.
