Valwood Park Federal Credit Union in Carrollton, Texas, has been removed from conservatorship and returned to its members.

The $25.4 million-asset credit union was placed under control of the National Credit Union Administration on Jan. 20, 2023, because of unsafe and unsound practices.

“The recovery of Valwood Park reflects the extraordinary efforts of its leadership team, staff, and members,” said NCUA Chairman Kyle Hauptman in a statement. “Working in collaboration with the NCUA, the new management team saved the credit union from failure by enhancing controls and mitigating risks.”

Typically, credit unions that are placed into conservatorship are later either merged with a healthy credit union or shuttered.

The most recent time that a credit union successfully navigated conservatorship was in 2022 when Southern Pine Credit Union of Valdosta, Georgia, was returned to the control and direction of its members.

Butler Heritage Federal Credit Union in Middletown, Ohio, was the first credit union to be conserved by the NCUA so far this year.

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.

Chartered in 1974, Valwood Park FCU has 2,686 members and serves the communities of Carrollton, Addison, and Farmers Branch, Texas.

Valwood Park CU earned roughly $1.2 million in 2024 after losing $2.4 million a year earlier, according to call report data from the NCUA.

The number of federally insured credit unions with assets of at least $10 million but less than $50 million – including Valwood Park –  declined to 1,209 in the fourth quarter of 2024 from 1,274 a year earlier.

Those credit unions held  $31.6 billion in assets, or 1% of total system assets.

Credit unions in that category saw an 8% decrease in loans over the year. Membership declined 7.2%, while net worth rose 0.5% for those 1,209 credit unions.

“Valwood Park is now in a stronger position to provide vital financial services and enhance the financial well-being of residents in Dallas’s Metrocrest communities.”

 – Kyle Hauptman
Chairman
NCUA