The State of Michigan Department of Insurance and Financial Services liquidated Valley State Credit Union of Saginaw, Michigan, and named the National Credit Union Administration (NCUA) as liquidating agent.
ELGA Credit Union of Burton, Michigan, immediately assumed Valley State Credit Union’s members, assets, shares, and loans. ELGA Credit Union is a federally insured, state-chartered credit union with assets of $498,512,717 and 64,058 members, according to its most recent Call Report.
The Department of Insurance and Financial Services made the decision to liquidate Valley State Credit Union and discontinue its operations after determining the credit union was insolvent with no prospect for recovery. The Department placed Valley State Credit Union into conservatorship on Aug. 17, 2016 and named NCUA as conservator on Nov. 9, 2016.
According to the credit union's most recent Call Report, the credit union was significantly undercapitalized with a net worth ratio of 2.90 percent. Delinquent loans were 7.42 percent of total loans and 154.59 percent of net worth. At the end of 2016, the credit union recorded a loss of almost $2.1 million.
Valley State Credit Union is the second federally insured credit union liquidation in 2017 and the first credit union to fail in Michigan since Veterans Health Administration Credit Union (Detroit, MI) on March 29, 2016.
Read the NCUA press release.
Subscribe to:
Post Comments (Atom)
What were the assets of valley state???
ReplyDeleteAssets were $19.8 million as of the end of 2016.
ReplyDelete