ALEXANDRIA, Va. — The NCUA drew the curtains on the Sterlent and Cal State 9 dramas today, declaring the failed credit unions officially liquidated. San Francisco-based Patelco Credit Union purchased and assumed assets of both institutions to the tune of $400 million.
The California Department of Financial Institutions issued a cease and desist order against Pleasanton, Calif.-based Sterlent Credit Union in February after its net worth fell to 5.15% at year-end 2006. Soon after, the California DFI named the NCUA liquidating agent, and the federal agency quickly liquidated Sterlent and agreed to sell "certain assets and liabilities" to the $4.1 billion Patelco. At the time of liquidation, Sterlent had approximately $94.6 million in assets.
Patelco's purchase and assumption of Concord, Calif.-based Cal State 9 was originally announced on May 22, and the process is officially complete today, the NCUA said. Cal State 9 Credit Union had $339 million in assets.
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Patelco is keeping all branches open and available to members, the NCUA reported, and no members of either institution experienced an interruption in service.
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