The Illinois Department of Financial Services today issued an order to liquidate St. Elizabeth’s Credit Union of Chicago, subsequently appointing the National Credit Union Administration as liquidating agent.
St. Elizabeth’s CU is the first federally insured credit union to fail in 2018.
Northstar Credit Union, of Warrenville, Ill., about 30 miles west of Chicago, immediately assumed most of St. Elizabeth’s CU’s members, assets and loans.
Following a 60-day suspension period, the state regulator in Illinois determined that St. Elizabeth’s CU should be liquidated. At the time of liquidation and subsequent purchase by Northstar CU, St. Elizabeth’s CU was a federally insured, state-chartered credit union with assets of approximately $140,000, serving 196 members.
Chartered in 1944, St. Elizabeth’s CU served the parish of St. Elizabeth’s Catholic Church in Chicago.
Northstar CU is a federally insured, state-chartered credit union with assets of $165 million and 14,756 members.
NCUA noted that the new Northstar CU members should experience no interruption in services, and that their accounts remain insured by the National Credit Union Share Insurance Fund.
Northstar CU posted net income of about $1.27 million in 2017, up from $884,000 in the prior year. Meanwhile, St. Elizabeth’s CU posted net loss of about $6,400 in 2017, following a loss of about $9,700 in the prior year.