SACRAMENTO, Calif. — One of the prospective California bidders for the failed Cal State 9 Credit Union is making a case this week that NCUA, like it apparently did in Colorado on Norlarco CU, reject any bank suitors.
"This is a credit union matter and banks don't belong there," declared Teresa Halleck, president/CEO of the $6.7 billion Golden 1 CU.
Halleck confirmed that her CU like a handful of other large Bay Area CUs expects to send a representative to an NCUA bidders conference in Phoenix today to review the agency's package detailing financials of Concord-based Cal State 9, which fell into conservatorship last November after it got into serious trouble on real estate loans.
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"There are plenty of large credit unions in my state that have the financial capability to take over CS9 and so there's no need for a bank to be making a bid," said Halleck. The issue may be moot since no California bank has expressed interest so far in Cal State but the Colorado Bankers Association complained in January that NCUA privately rebuffed a bid from one of their own to purchase the good assets of the failed Norlarco CU of Fort Collins, awarded Feb. 29 to Public Service CU of Denver.
Based on a preliminary examination, Halleck said Cal State could be a good fit with Golden 1, but her staff will be looking at such areas as the CU's remaining core deposits, cost of funds, interest margin, and "remaining loan portfolio performance excluding the home equity loans."
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