The State of Michigan Department of Insurance and Financial Services liquidated Saginaw, Mich.-based Valley State Credit Union on March 31.
Burton, Mich.-based ELGA Credit Union immediately assumed the failed credit union's assets, shares, loans and members.
Valley State CU was liquidated after it was determined that it was insolvent with no prospect of recovery. Valley State CU was placed under conservatorship by the Department of Insurance and Financial Services on Aug. 17, 2016, with the National Credit Union Administration appointed as conservator. In February, the NCUA said Valley State CU had "addressed financial and management issues affecting the safety and soundness of its operations."
Members of Valley State CU will experience no service interruption, and their accounts will continue to be federally insured by the National Credit Union Share Insurance Fund.
Valley State Credit Union is the second federally insured credit union liquidation in 2017.