MATTESON, Ill. – The Illinois Division of Financial Institutions on Friday liquidated $40 million USA One National CU with the remnants of the privately insured credit union assigned by its insurer American Share Insurance, to Credit Union 1, the Lombard, Ill., credit union that has been picking up privately insured failures over the past few years.
USA One was the second credit union failure Friday, following California’s Telesis Community CU. It was the tenth failure of 2012.
It is unclear what caused the failure because the president of USA One told members a January newsletter the credit union was well-capitalized with 10% net worth, but the Illinois regulator said Friday it was “closed due to inadequate capital”. Also, the financial data for the credit union had been taken off the ASI website.
Over the past few years Credit Union1 has also acquired ASI-backed failures Cumorah CU in Nevada and Elgin City Employees CU Illinois, and several other small credit unions to build its assets to $681 million.
