Valley State Credit Union closes, ELGA CU assumes members, assets

The State of Michigan Department of Insurance and Financial Services on Friday liquidated Valley State Credit Union, Saginaw, Mich., and named the National Credit Union Administration as liquidating agent.

Valley State Credit Union is the second federally insured credit union liquidation in 2017.

ELGA Credit Union, Burton, Mich., 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 million and 64,058 members, according to its most recent Call Report.

NCUA said the new members of ELGA Credit Union should experience no interruption in services, and their accounts remain federally insured by the National Credit Union Share Insurance Fund.

ELGA Credit Union has posted information for its members on its website. The existing Valley State Credit Union office at 2686 McLeod Drive North in Saginaw will remain open.

The Michigan Department of Insurance and Financial Services said it 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 CU 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, plus 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 CU served 2,715 members and had assets of $19 million, according to the credit union’s most recent Call Report.

Goodbye Valley State CU.png

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Law and regulation Michigan
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