The National Credit Union Administration has announced that in the three months since the agency was appointed conservator of Valley State Credit Union of Saginaw, Mich., the institution has addressed “financial and management issues affecting the safety and soundness of its operations.”
NCUA also noted that Valley State CU “continues to work toward improving operations, and member services continue uninterrupted.” In addition, Valley State members can conduct financial transactions, including share deposit, share withdrawal and lending activities.
The $19.8 million-asset Valley State CU had 2,715 members as of year-end 2016, along with a net worth of $576,685, and total shares and deposits totaling some $19.2 million. The credit union also posted a net loss of $2.1 million for the year.
In mid-August 2016, The Michigan Department of Insurance and Financial Services had placed Valley State CU into conservatorship, citing “unsafe and unsound practices” at the credit union. The Department appointed NCUA as conservator on Nov. 9, 2016.
Deposits at Valley State CU remain protected by the National Credit Union Share Insurance Fund.
