NEW CASTLE — Federal regulators have closed a credit union that served Western Pennsylvania school employees as the Department of the Treasury investigates more than $3 million in losses late last year.

First Choice Federal Credit Union has bought the Lawrence County School Employees Federal Credit Union, which closed Friday, the National Credit Union Administration said.

No Lawrence County customers will lose money, said Marilyn Wehr, First Choice's chief executive. Their accounts were each insured up to $250,000 by the National Credit Union Share Insurance Fund.

The school credit union had about 1,900 members last year, but the number dwindled to about 1,100 recently as the credit union's $3.4 million loss was reported late last year. The credit union's cash assets alone dropped from $2.6 million in September to $151,000 in December.

Nobody has been charged criminally in the losses.

First Choice didn't hire the closed credit union's employees, and its board has been disbanded.

Kenneth Cotton, who was president of the defunct credit union, said First Choice's takeover was the best option for the remaining credit union members.

"That was the best way we could have gone," Cotton said. "I am personally relieved that all funds were insured and nobody lost any money."

The NCUA is continuing to administer most of the loans made to the school credit union's members, while First Choice took over a few. First Choice will consider refinancing any loans it was not able to take over, Wehr said.

The school employees' credit union was founded in 1937. First Choice has assets of $22.3 million and about 4,400 customers.