The NCUA liquidated the $21.8 million Members First of Maryland Federal Credit Union on Friday, marking the fifth credit union closure by the federal agency this year.
Although the federal agency did not close any credit unions last year, the $31.2 million 1st Choice Credit Union in Atlanta and the $58.4 million Alliance Credit Union of Florida were merged after they were conserved.
Chartered in 1969, Members First of Maryland Federal Credit Union (MFMFCU) served 3,638 members, including local union members of the United Steelworkers, AFL-CIO, ILA and IBEW, as well as residents of Perry Hall and White Marsh. The Baltimore-based financial cooperative employed 10 individuals and operated two branches.
The $2.5 billion Aberdeen Proving Ground Federal Credit Union (APGFCU) of Edgewood, Md., immediately purchased some assets and assumed Members First of Maryland Federal Credit Union’s share accounts.
According to MFMFCU’s second-quarter Call Report, the credit union held 3,551 share accounts worth a total of $21,044,518. The report also listed $29,270 in uninsured shares and deposits.
The NCUA stated it made the decision to close MFMFCU and discontinue its operations after determining insolvency was imminent, and the credit union had no prospect for restoring viable operations. The federal agency, however, did not state any specific reasons for the liquidation.
However, a review of MFMFCU’s financial performance reports suggests contributing factors included prolonged undercapitalization since 2022, consistent net losses from 2020 through the first half of 2025, and significant declines in assets and equity over that same period.
NCUA financial performance reports showed the credit union’s net worth declined steadily: 6.35% in 2022, 4.02% in 2023, 3.57% in 2024 and 3.35% as of the second quarter of 2025.
MFMFCU also recorded losses of $148,091 in 2020, $485,103 in 2021, $181,017 in 2022 and $158,081 in 2023. Although the credit union posted a net gain of $34,954 at the end of 2024, its losses resumed in the first and second quarter of the year, $29,300 and $72,130, respectively, NCUA financial performance reports showed.
The credit union’s assets dropped from $27.4 million in 2020 to $21.8 million during the second quarter of this year, while its equity plunged from $2.2 million in 2020 to $659,051 by the second quarter, according to NCUA financial performance reports.
Members with questions about their accounts may contact APGFCU at 410-272-4000. Members with questions about their Share Insurance Fund coverage can find more information in the Share Insurance Coverage section of the NCUA’s MyCreditUnion.gov consumer website.
Peter Strozniak can be reached at pstrozniak@cutimes.com.
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