SAGINAW, Michigan—The State of Michigan Department of Insurance and Financial Services Friday liquidated Valley State CU here and named the National Credit Union Administration as liquidating agent, NCUA reported.
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.
Chartered in 1955, Valley State Credit Union served employees of the State of Michigan who lived or worked in the Michigan counties of Arenac, Bay, Genesee, Huron, Midland, Saginaw, Sanilac, or Tuscola, employees, students, and alumni of Saginaw Valley State College, and other specific groups. At the time of liquidation and subsequent purchase by ELGA Credit Union, Valley State Credit Union served 2,715 members and had assets of $19,817,961, according to the credit union’s most recent Call Report.
Valley State Credit Union is the second federally insured credit union liquidation in 2017.