NCUA again shutters tiny, insolvent credit union
There were no credit union liquidations in 2024, but halfway through 2025 the NCUA has already closed three struggling institutions.
The National Credit Union Administration Monday closed Butler Heritage Federal Credit Union in Middletown, Ohio.
In January, the regulator conserved the $9.7 million-asset credit union.
It becomes the third credit union to be shuttered by the federal regulator in 2025.
Before this year, the most recent credit union liquidated by the NCUA was Inter-American Federal Credit Union of Brooklyn, New York, in March 2023.
The NCUA said $173 million-asset Cincinnati Ohio Police Federal Credit Union immediately purchased some of Butler Heritage’s assets and assumed its share accounts.
The regulator made the decision to liquidate Butler Heritage and discontinue its operations after determining insolvency was imminent, and the credit union had no prospect for restoring viable operations.
Butler Heritage lost $89,500 in the first quarter of 2025 after losing nearly $261,000 in 2024, according to call report data.
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The NCUA last week liquidated Soul Community Federal Credit Union in Georgia just six months after it was chartered. The agency also closed Unilever Federal Credit Union of Englewood Cliffs, New Jersey, in April.
Additionally, Aldersgate Federal Credit Union in Marion, Illinois, recently became the second credit union to be conserved this year by the NCUA.
Butler Heritage Federal Credit Union served people who live, work, worship, volunteer, or attend school in, and businesses and other legal entities located in Butler County, Ohio.
The credit union had 776 members.
The number of federally insured credit unions with less than $10 million in assets – including Butler Heritage – declined to 839 in the first quarter of 2025 from 911 in the first quarter of 2024.
Soul Community was one of four credit unions to receive a federal charter last year. Thus far in 2025, two charters have been awarded.
