PARIS, Ill.—The Illinois Division of Financial Institutions has suspended the operations of Route 1 Credit Union here for 60 days. The state regulator appointed Decatur Earthmover Credit Union, Forsyth, Ill., as manager-trustee.
The order noted that the Department was not able to ascertain the true financial condition of the credit union, reported Keith Leggett, the former senior vice president and senior economist at the ABA, on his Credit Union Watch blog.
The order stated that the credit union's allowance for loan losses account was underfunded. No determination can be made to the adequacy of the credit union's allowance for loan losses account and the current net worth position, Leggett stated.
The order pointed out that the credit union has not filed required reports.
In addition, the credit union is in violation of state law by having fewer than seven directors on the board and fewer than three members on its supervisory committee. Also, the credit union has failed to pay in a timely manner its quarterly regulatory fee and failed to pay the Department an August 2017 special investigation fee, Leggett noted.
Route 1 Credit Union had $4.1 million in assets, as of June 2017. The credit union reported a loss of $164 thousand through the first six months of 2017. The credit union was undercapitalized with a net worth ratio of 4.91%. The order was signed on October 3, Leggett noted.