A First of 2023: NCUA Conserves Valwood Park Federal Credit Union

The $28 million Valwood Park Federal Credit Union in Carrollton, Texas was conserved for unsafe and unsound practices, the NCUA said late Friday afternoon.

Valwood Park was designated as well-capitalized at 14.15%, higher than the peer average of 12.37%, while its net worth growth was 4.63%, according to its third quarter NCUA financial performance report and Call Report.

The credit union recorded loans of $18.4 million in this year’s third quarter, up from $15.8 million in the third quarter of 2021.

However, its net income has declined from $162,974 in September 2021 to $86,675 in September 2022, while over the last five years, Valwood Park’s net income has increased from $66,259 in December 2017 to $171,888 in December 2021. In the same time frame, loans increased from $13 million to $15.9 million, according to NCUA financial performance reports.

The credit union reported zero delinquent loans in the second and third quarters of 2022 and 0.01% delinquent loans in the first quarter of last year.

In the third quarter of 2021, Valwood Park posted zero delinquent loans and 0.15% in delinquent loans at the end of last year, according to NCUA financial performance reports. The peer average is 0.91% in delinquent loans.

While continuing normal member services, the NCUA said it will work to resolve issues affecting the credit union’s operations.

Valwood Park, a community charter credit union, has six employees who operate one branch and serve 2,833 members, according to its NCUA Call Report for last year’s third quarter.

It is the first credit union to be conserved in 2023.