Chevron Merging California's Star Energy
Oakland-based Chevron Credit Union, which has been a merger partner for small California CUs over the years, on Friday added another, the ailing $5.9 million Star Energy CU of Bakersfield.
An NCUA spokesman confirmed Monday that the merger, which has been in discussion for several years, was approved on Thursday "with no cost to the NCUSIF."
Star Energy, which was founded in 1936 by Chevron employees, had net worth of 3.75% at Sept. 30 and had been under "prompt corrective action," according to NCUA. The CU lost $272,000 for the first nine months on top of $40,000 in 2009.
Star has 1,500 members while the $1.5 billion Chevron has 70,000, including more than 860 in the Bakersfield area.
Chevron Federal, chartered in 1935, has 14 branches in California, Louisiana, Mississippi and Texas.