Telesis Tumble Tab Reaches $72 Million for NCUSIF
The NCUSIF has taken an estimated hit of $72 million due to the failure of Telesis Community Credit Union, NCUA Public Affairs Specialist John Fairbanks said Tuesday.
The NCUA assumed $205 million worth of Telesis assets after the California Department of Financial Institutions seized the failed Chatsworth, Calif., credit union on March 24, 2012, and named the NCUA liquidating agent. Of that total, $162 million were loans, with the majority being business loans serviced by Telesis CUSO Business Partners.
The NCUA also assumed $22 million worth of real estate and $21 million in other assets from Telesis, which had $301 million in assets at the time of liquidation June 1.
Fairbanks also revealed that the NCUA put $177 million into a purchase and assumption deal with the $1.3 billion Premier America CU, to balance the differences between loans and shares, because Premier America took more shares than assets.
Premier America, also located in Chatsworth, had been managing Telesis for six weeks prior to the liquidation, and assumed Telesis’ members, deposits, core facilities and consumer loans.
The NCUA in November sold the controlling interest of Business Partners to a managing partner group of three of the CUSO’s original owners: the $650 million Farmers Insurance Group FCU of Los Angeles, $526 million Great Lakes CU of North Chicago, Ill., and the $1.2 billion Public Service CU of Denver.
Fairbanks said the sale of Autoland, a car buying CUSO also formerly owned by Telesis, is still in progress.