In the first quarter of this year, Valwood Park recorded a net interest expense of $2,690,914 and in the second quarter, the credit union showed a net interest expense of $2,961,003, according to NCUA financial performance reports.

Valwood Park was designated as well-capitalized with a 13.45% net worth at the end of 2022. Since then, however, its net worth has plummeted to 5.21% at the end of this year's second quarter.

Since it was conserved, the credit union's loans have declined from $19.6 million in December 2022 to $18 million in June 2023, while assets have dropped from $28.9 million to $26.7 million within the same time frame, NCUA financial performance reports showed.

While continuing member services, the NCUA said it is working to resolve issues affecting the credit union's operations.

Valwood Park, which serves 2,749 members, is being managed by Lisa Hay, a national credit union consultant. She previously worked as the COO at the $4.2 billion Municipal Credit Union in New York when it was conserved in 2019. She had been credited with rebuilding and streamlining MCU's retail operations, which was accomplished in part by closing six branches in 2020. MCU was released from conservatorship in February 2022.