NCUA Liquidates Tracy FCU, Valley First CU Buys Its Assets
The NCUA liquidated Tracy Federal Credit Union of Tracy, Calif. yesterday and accepted an offer from Valley First Credit to purchase and assume its assets.
The NCUA had placed Tracy FCU into conservatorship in March.
Tracy FCU is a $25.9 million credit union that saw its liabilities increase 27.2% during the last quarter of 2009 and a 89.6% decline in its net income, according to its financial report filed with the NCUA. The credit union hasn't filed a report for the first quarter of 2010.
In the last three months of 2009 its delinquency ratio was 3.85%, up from 3.54% in the third quarter.
It had a negative ROA as it had during the three previous quarters of 2009.
Valley First Credit Union, headquartered in Modesto, has $381 million in assets and has been hurt by the California economy.
Although its net worth ratio was 10.73% at the end of 2009 and had loan delinquency ratio of 1.56%, which is below the average of its peers, it had a negative ROA.