The $116,449 St. Elizabeth’s Credit Union in Chicago became the first credit union liquidation of 2018, the NCUA said Tuesday.
Following a 60-day suspension last fall, the Illinois Department of Financial and Professional Regulation determined that the credit union should be liquidated.
CU Times reported in October that a state examination uncovered several issues including missing loan documents, a high delinquency loan ratio and bookkeeping discrepancies. State examiners also determined that St. Elizabeth CU paid dividends even though there was not a legal board quorum to vote on whether to distribute the dividends.
The Illinois regulator issued a liquidation order on Tuesday and appointed the NCUA as the liquidating agent.
The $167 million NorthStar Credit Union in Warrenville, Ill., immediately assumed most of St. Elizabeth CU’s 167 members, assets and loans, according to the NCUA. NorthStar serves more than 14,000 members.
Chartered in 1944, St. Elizabeth’s CU served the parish of St. Elizabeth’s Catholic Church.
