Alliance Credit Union of Florida has been placed into conservatorship by Florida’s Office of Financial Regulation. The agency then appointed the National Credit Union Administration as conservator.

Neither the NCUA nor the Florida regulator gave a reason for the action, but credit unions are typically placed into conservatorship in order to resolve operational problems that could affect the credit union’s safety and soundness.

During a conservatorship, the credit union remains open; members may transact business; and accounts remain insured.

The $59 million-asset Alliance Credit Union lost $2.4 million in the first three quarters of 2024 after losing $184,000 in 2023, according to call report data from the NCUA.

Based in Gainesville, Alliance Credit Union of Florida serves anyone living or working in Alachua, Bradford, Gilchrist, Levy, or Union County, and other employee groups as well as their family members.

The credit union has 5,394 members.

1st Choice Credit Union in Atlanta was the first credit union conserved by the NCUA this year. In 2023, the regulator conserved two institutions – Valwood Park FCU in Texas and Yonkers Postal Employees Credit Union in New York.

The number of federally insured credit unions with at least $50 million but less than $100 million in assets – including Alliance CU – declined to 622 in the second quarter of 2024 from 653 a year earlier.

Those credit unions held $44.9 billion in total assets, or 2% of total system assets. Credit unions in that category reported a 5.2% decline in total loans over the year.

Membership declined 6%, and net worth rose 0.4% for those 622 credit unions.