Rogue FCU to Retain Chetco’s Oregon Employees and Branches Through Acquisition
December 28, 2012
December 28, 2012
The National Credit Union Administration (NCUA) announced today that Medford, Ore.-based Rogue Federal Credit Union has been selected to purchase and assume Chetco Federal Credit Union’s five Oregon branches and memberships.
The NCUA conserved Chetco in September 2011 to protect its financial stability and ensure safety and soundness. While overseeing Chetco’s operations, the regulator began working to find a long-term solution that best served the members, and after extensive research and analysis, Rogue Federal’s board of directors approved the purchase agreement with the NCUA. Chetco’s Crescent City, Calif., branch and memberships will be assumed by Coast Central Credit Union, based in Eureka, Calif.
Chetco’s Oregon branches will close for the New Year’s holiday and will re-open Wednesday, Jan. 2 as Rogue branches. Members are expected to experience no disruption of services.
Employees of Chetco’s Oregon operations are being retained, according to a news release issued by Rogue Federal.
“We realize that the Chetco staff is a team of highly dedicated folks that are committed to serving the members and the community,” said Gene Pelham, Rogue Federal’s president and CEO. “It was important for us to welcome all Oregon Chetco employees to the Rogue Federal family.”
Pelham has made his email address, email@example.com, available to members with questions. Pelham and the credit unions’ leadership teams will be available throughout the weekend to answer media inquiries and to address questions or concerns from new and existing members.
Rogue Federal opted not to purchase some loans that will be transferred to the NCUA’s Asset Management Assistance Center. Members with those loans will receive servicing information via postal mail next week.
Chetco was founded in 1957 by mill workers using the trunk of a vehicle as their first office. Prior to its conservatorship, Chetco grew to become a leading financial services provider to consumers in Oregon’s Coos, Curry and Del Norte Counties.
Rogue Federal was founded in 1956 by a small group of teachers. Today it serves nearly 56,000 members with assets of more than $583 million, and Rogue Federal enjoys a rich history of financial health and community outreach in Southern Oregon. The credit union is considered well capitalized by the NCUA, posting a net worth ratio of 7.98 percent at the end of November 2012.
With the Chetco acquisition, Rogue Federal will serve more than 70,000 members with nearly $800 million in assets. Net worth is expected to be 8 percent. The credit union will gain greater efficiencies and be able to serve all of the members with more branch locations throughout Southern Oregon while improving products and services over time, according to the news release issued Friday evening.