Butler Heritage Federal Credit Union in Middletown, Ohio, became the first credit union to be conserved by the National Credit Union Administration in 2025.

In a press release issued late Friday, the regulator said the action was taken because of unsafe and unsound practices at the $10 million-asset credit union.

As conservator, the NCUA will work to resolve issues affecting the credit union’s operations. During a conservatorship, the credit union remains open; members may transact business; and accounts remain insured.

Butler Heritage lost $156,000 in the first three quarters of 2024 after losing $48,000 in 2023, according to call report data from the NCUA.

Butler Heritage Federal Credit Union serves people who live, work, worship, volunteer, or attend school in, and businesses and other legal entities located in Butler County, Ohio.

The credit union has 836 members.

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.

The number of federally insured credit unions with less than $10 million in assets – including Butler Heritage – declined to 885 in the third quarter of 2024 from 938 in the third quarter of 2023.

Those credit unions held  $3.7 billion in assets, or 0.2% of total system assets. Credit unions in that category reported a 7.2% decrease in loans over the year.

Membership declined 6.4% and net worth edged down 1.3% for those 885 credit unions.