PLEASANTON, Calif. — The California Department of Financial Institutions issued a cease-and-desist order against the struggling $102 million Sterlent Credit Union on February 20.

In the past 12 months, Sterlent?s net worth ratio has fallen from 8.26% at year end 2006, to only 5.15% for year end 2007, prompting the state?s corrective actions. Another financial performance indicator, total delinquent loans against net worth, reveals the biggest problem: an increase from 7.44% at year-end 2006 to 91.21% by year-end 2007.

Sterlent CEO Sue Raines, who has occupied Sterlent?s corner office since mid-2007, said she couldn?t comment on the orders, because the DFI mandates confidentiality. However, she reiterated earlier statements made to the Credit Union Times last month, in which she blamed home loan delinquencies and tough real estate market conditions for Sterlent?s $4.8 million loss in 2007.