CONCORD, Calif.–With a bidders conference reportedly slated this Wednesday in Phoenix, Bay area credit unions were lining up this week to submit offers to NCUA to acquire the $339 million asset Cal State 9 CU, placed under conservatorship last November.

It was uncertain how many of the area's largest CUs would actually submit bids to the agency but representatives from CUs like The Golden 1 CU of Sacramento, Patelco CU of San Francisco, Redwood CU of Santa Rosa and Travis CU, of Vacaville, were thought to be likely suitors and would attend a Phoenix area meeting by one credit union official close to the situation. NCUA's Region V is handling the conservatorship.

NCUA formally announced last week it was starting a bidding procedure in connection with a purchase & assumption transaction, much like the Feb. 29 takeover by Public Service CU of Denver of the failed Norlarco CU of Fort Collins, Colo.

In a letter to Cal State 9 members appearing on the CU's Web site, Melinda Love, NCUA's Region V Director based in Tempe, said a merger with another institution “is in the best interest of Cal State 9's membership.” Love said she expected the takeover would be finalized by this summer.

Cal State got into trouble on mortgages losing $45.9 million during the first nine months of 2007. Many of the loans had adjustable rates.