Member Accounts Remain Protected by the Share Insurance Fund
ALEXANDRIA, Va. (Feb. 7, 2017) – In the three months since the National Credit Union Administration was appointed conservator of Valley State Credit Union of Saginaw, Michigan, the credit union has addressed financial and management issues affecting the safety and soundness of its operations.
Valley State is a federally insured, state-chartered credit union with assets of $19.8 million and 2,715 members, according to its year-end Call Report. As of Dec. 31, 2016, Valley State reported net worth of $576,685. Total shares and deposits were $19.2 million.
The Michigan Department of Insurance and Financial Services placed Valley State into conservatorship on Aug. 17, 2016, citing unsafe and unsound practices at the credit union. The Department appointed NCUA conservator on Nov. 9, 2016.
Valley State continues to work toward improving operations, and member services continue uninterrupted. Members can conduct financial transactions, including share deposit, share withdrawal and lending activities.
Deposits at Valley State Credit Union remain protected by the National Credit Union Share Insurance Fund. Administered by NCUA, the Share Insurance Fund insures individual accounts at Valley State Credit Union up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund also separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.
No member of a federally insured credit union has ever lost a penny of insured savings.