PLEASANTON, Calif. — Sterlent Credit Union, which was on the verge of facing Prompt Corrective Action at the end of last year with a net worth ratio of 6.08%, is insolvent. Sterlent's net worth is now -0.29%. With delinquency at 3.76% and charge-offs for the quarter ending March 31 of $3.8 million and a return on assets of -22.13% and a net income loss for the quarter of $5.5 million, the CU is either facing a conservatorship, liquidation or forced merger.

Calls to the California Commissioner of Financial Institutions office of William Haraf, and Bert McLane, Financial Institutions Manager for the Dept. of Financial Institutions were not returned. Credit Union Times also left a request for comment with Sterlent CEO Sue Raines, which were also not returned.

Sterlent is a state charter but is federally insured by the NCUA. John McKechnie, director, public and congressional affairs referred inquiries to the state regulator.