For the second time this year, Michigan regulators placed a credit union into conservatorship.
The Michigan Department of Insurance and Financial Services said Aug. 18 that it took over the financially troubled $24.8 million Valley State Credit Union in Saginaw.
After examining Valley State's books, the Michigan regulator said it was determined to place the credit union into conservatorship because it was "necessary to protect the public interest."
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Although the regulator did not specify the credit union's issues, Valley State has been losing money since 2011, according to NCUA financial performance reports. From 2011 to 2015, the credit union's net income losses totaled more than $195,000.
However, Valley State suffered heavier net income losses of $229,780 at the end of this year's first quarter and an additional $301,069 in net income losses at the end of the second quarter, according to NCUA financial performance reports. Although the credit union showed a net worth of 9.40%, it posted an ROAA of -2.40% at the end of Q2.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
