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Two California Credit Unions To Merge

Wednesday, May 29, 2013 - 6:42 AMKern Schools Credit Union - Details
From The Credit Union Times:
Tehachapi Federal Credit Union and Kern Schools Federal Credit Union last week announced that they will merge.

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Calaveras Tehachapi FCU has a 1-star rating on DA, while Kern Schools FCU is 5-star rated by DA.  Information on the former is scant, but it appears to have 345 members and assets of $2 million. The credit union, opened in 1961, has no full time employees and 2 part time employees. 

The Bakersfield Californian has additional detail:

The county's largest financial institution is riding to the rescue of a much smaller credit union in Tehachapi that federal data show has fallen on very hard times.

Kern Schools Federal Credit Union announced Monday that it has agreed to merge with Tehachapi Federal Credit Union, whose perilous financial condition likely made it a candidate for being shut down by regulators.

Between March 2012 and December, Tehachapi Federal's capital ratio -- a key indicator of financial strength, calculated by dividing net worth by total assets -- slipped from 3.33 percent to 2.07 percent; it recovered to 2.22 percent in March 2013, federal data show. Anything below 6 percent is deemed to be of concern.

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