The California Department of Financial Institutions placed the $301 million Telesis Community Credit Union of Chatsworth, Calif., into liquidation on Friday and appointed the NCUA as liquidating agent.
The $1.3 billion Premier America Credit Union, also of Chatsworth, Calif., immediately purchased and assumed Telesis’ members, deposits, core facilities, and consumer loans.
The California DFI made the decision to liquidate Telesis and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations on its own.
The credit union had sustained years of losses tied to losses in commercial lending, particularly participation loans.
At the time of liquidation and subsequent purchase and assumption by Premier America, Telesis served approximately 37,600 members.
Originally chartered in 1965, Telesis’ field of membership at the time of liquidation included various employer groups and individuals who live, work, worship, or go to school in the San Fernando and Santa Clarita valleys or in Ventura County.
The DFI placed Telesis into conservatorship March 23. Telesis Community Credit Union is the fifth federally insured credit union liquidation in 2012.
Premier America Credit Union, which was established in 1957 as Litton Employees Federal Credit Union, had nearly 64,000 members before the purchase. Its field of membership includes multiple SEGs, as well as a community FOM that mirrors Telesis.