After 15 months in conservatorship, the NCUA liquidated the $259million Chetco FCU of Harbor, Ore., effective Dec. 31.

Assets were split between two successful bidders: the $960million Coast Central Credit Union of Eureka, Calif., and the $583million Rogue FCU of Medford, Ore.

The 56,000-member Rogue purchased and assumed Chetco's fiveOregon branches and memberships, while the 55,000-member CoastCentral purchased and assumed the Crescent City, Calif., branch andCalifornia memberships.

Rogue and Coast Central reopened Chetco's former Oregon andCalifornia branches, respectively, on Jan. 2.

Chetco's fortunes turned south in 2010, when the credit unionposted a nearly $17 million net loss, fueled by nearly $18 millionin loan loss provisions, according to NCUA financial performancereports posted online.

Loan delinquencies, primarily in commercial real estate lending,skyrocketed during 2010, increasing from 2.07% as of year-end 2009to 10.41% just one year later. During that same period, net worthplunged from 9.07% to 5.01%.

The board attempted to right the ship in 2011, hiring DianeJohnson as CEO in July. However, the NCUA placed Chetco intoconservatorship Sept. 23, 2011, and replaced Johnson with GaryJester, who dusted off his suit after previously retiring from the$1 billion Advancial FCU of Dallas. By Dec. 31, 2011, Chetco was$34.5 million in the red with a negative 6.44% net worth and 18.76%delinquencies.

Jester was able to apply a tourniquet to the bleeding, posting arelatively mild $525,973 net loss as of Sept. 30 of this year.However, loan losses were just too much to overcome: Chetcoreported 23.81% delinquencies as of Sept. 30 and a negative 7.31%net worth.

As of Sept. 30, the majority of Chetco's $60 million inreportable delinquencies were adjustable rate mortgages, numberingnearly $46 million. Another $12 million in fixed-rate mortgageswere also reported.

The credit union also reported that $33 million of itsdelinquent loans were business loans, and nearly $13 million wereparticipation loans.

Chartered in 1957, Chetco was a community credit union servingpeople who live, work or worship in Coos and Curry counties inOregon and Del Norte County in California. At the time ofliquidation and subsequent purchase and assumption by Rogue andCoast Central, Chetco served 24,926 members and had approximately$259 million in deposits.

Chetco is the fourteenth federally insured credit unionliquidation in 2012.