NCUA places tiny Illinois credit union into conservatorship
The National Credit Union Administration took control of a struggling credit union for the second time in 2025.
Aldersgate Federal Credit Union in Marion, Illinois, became the second credit union to be conserved by the National Credit Union Administration in 2025.
In January, the regulator conserved Butler Heritage Federal Credit Union in Middletown, Ohio.
The NCUA also closed Unilever Federal Credit Union of Englewood Cliffs, New Jersey, in April.
In a press release issued Wednesday, the regulator said the action was taken while it works to resolve issues affecting the $10.6 million-asset Aldersgate.
During a conservatorship, the credit union remains open; members may transact business; and accounts remain insured.
Aldersgate Federal earned $33,500 in the first quarter of 2025 after having net income of $55,000 in 2024, according to call report data from the NCUA.
Aldersgate FCU 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.
The credit union has 811 members.
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1st Choice Credit Union in Atlanta was the only credit union conserved by the NCUA last year, although the agency was named as conservator when Florida’s Office of Financial Regulation placed Alliance Credit Union of Florida into conservatorship in early November.
In 2023, the NCUA conserved two institutions – Valwood Park FCU in Texas and Yonkers Postal Employees Credit Union in New York.
Valwood Park earlier this year was removed from conservatorship and returned to its members.
The number of federally insured credit unions with at least $10 million in assets but less than $50 million – including Aldersgate FCU – declined to 1,196 in the first quarter of 2025 from 1,253 in the first quarter of 2024.
Those credit unions held $31.6 billion in assets, or 1% of total system assets. Credit unions in this category reported an 8% decrease in loans over the year.
Membership declined 6.5%, while net worth edged up 0.8% for those 1,196 organizations.
