The NCUA-conserved Telesis Community Credit Union saw its financial condition worsen in the first quarter, posting a $13.6 million loss with net worth plummeting to 1.27%, the agency reported over the weekend.
The $318 million Chatsworth, Calif., credit union was taken under NCUA conservatorship March 23 at the request of the California Department of Financial Institutions followed up with NCUA awarding a management contract 10 days later to a competitor, the $1.3 billion Premier America Credit Union.
For years, Telesis has been on NCUA’s list of troubled credit unions because of large losses incurred on business loans, many participations extended outside of California to commercial real estate developments that have since gone sour.
Telesis lost $7 million in 2011 and at year end its net worth stood at 4.59%.
Once at $625 million, the San Fernando Valley credit union has reported yearly losses since 2007 with $13 million the highest in 2008.
Delinquent loans stood at 10.9% of total loans in the first quarter, a drop from 12.25% at yearend. Net charge offs as a percentage of loans was at 10.58%. Underscoring its business loan problems, the NCUA said Telesis’ participation loan delinquency ratio stood at 18.9% in the first quarter.