MARION, Ill.–For the second time in two days NCUA has liquidated a credit union.

The agency said it has liquidated the $10.5-million Aldersgate Federal Credit Union after determining the credit union was insolvent and had no prospect for restoring viable operations. The credit union violated numerous provisions of the Federal Credit Union Act and NCUA Rules and Regulations, including operating in an unsafe and unsound manner, according to NCUA.

As the CU Daily reported here, on June 18 NCUA placed Aldersgate FCU, which has approximately 811 members, into conservatorship. The credit union reported $33,481 in net income as of March 31, with net worth of 10.17%. It had $55,019 net income at year-end 2024. 

Aldersgate Federal Credit Union serves the ministerial and probationary members, full time employees, local pastors, clergy persons and diaconal ministers under appointment of the bishop of the Illinois Great Rivers Conference of the United Methodist Church.

Liquidation in Ohio

On June 30, NCUA said it has facilitated a partial purchase and assumption between the undercapitalized Butler Heritage FCU in Middletown, Ohio, and Cincinnati Ohio Police FCU.

NCUA said it made the decision to liquidate Butler Heritage FCU and discontinue its operations after determining insolvency was imminent, and the credit union had no prospect for restoring viable operations.

According to the agency, Cincinnati Ohio Police FCU immediately purchased some assets and assumed Butler Heritage FCU’s share accounts. Butler Heritage FCU was subsequently liquidated. 

The $9.6 million BHFCU, which has approximately 776 members, posted a loss of $89,520 as of March 31, with net worth of just 4.9%. It had a $260,633 loss as of year-end 2024.

The $172.6-million COPFCU, which has approximately 10,609 members, has net income of $230,506 as of the end of Q1.