Illinois Regulator Suspends Bensenville Community CU's Operations

BENSENVILLE, Ill. — The operations of Bensenville Community CU have been temporarily suspended by the Illinois Division of Financial Institutions.

The regulator has determined that the credit union is insolvent, and has suspended the privately insured CU’s operations for 60 days.

The credit union remains open, and Interim President Jim McNeil told Credit Union Journal that the state is searching for a suitable merger partner for the CU.

A manager trustee has been appointed by the state to take over for the credit union’s board of directors, said McNeil, who has led the CU since February.

According to the state's suspension order, as of May 31, 2014, the credit union was insolvent with total liabilities and shares of $14,438,508.11 and net assets of $14,429,853.91, resulting in total net worth of negative $8,654.20.

The CU's June 30 financial statement showed the credit union lost $340,099 during the first six months of 2014.

McNeil said the problems that led to the credit union’s financial difficulties are not unfamiliar to small CUs.

“It’s just the function of the times we live in and the plight of the small credit union to operate profitably,” he said. “And there were problems related to lending.”

Bensenville Community was founded in 1934. Membership is open to people living or working in Bensenville and their families.