NCUA official seal. Credit/NCUA
The NCUA announced Thursday evening that it conserved California's Beverly Hills City Employees Federal Credit Union, (BHCEFCU), the second financial cooperative that has come under the federal agency's control within one week.
Services for the credit union's 1,546 members will continue while the NCUA addresses what it described as unsafe and unsound practices at BHCEFCU.
While its loans and assets have been declining since 2021, the credit union has also posted consistent financial losses, according to NCUA's financial performance reports. Loans fell from $7.1 million in 2021 to $6.8 million at the end of last year's Q3. In that same period, assets dropped from $22.8 million to $16.4 million.
BHCEFCU recorded losses in every quarter of 2025, ending the third quarter with a loss of $218,190. The credit union also posted annual losses in 2021 ($43,887), 2022 ($48,159), and in 2024 ($136,936), NCUA data showed.
Delinquencies have steadily risen in 2025. Delinquent loans as a percentage of total loans stood at 1.19% in the first quarter and 1.66% in the second, both higher than the peer average of 1.13%. Although the figure fell to 1.02% in the third quarter, it remained above the 0.35% reported in the same quarter of 2024.
BHCEFCU' s manages $8.1 million in investments, which makes up half of its total assets. Of that, more than $5.3 million is held to maturity, while $2.7 million is available for sale. The credit union reported $344,226 in accumulated unrealized losses on available-for-sale debt securities, according to its third-quarter Call Report.
This marks the industry's second conservatorship in 2026. On Jan. 16, the NCUA conserved the $3.2 million People Trust Community Federal Credit Union in North Little Rock, Ark., which opened just two years ago. Francisco Garcia is listed as the credit union's manager. He is an NCUA supervisory examiner based in San Antonio, according to his LinkedIn page.
Peter Strozniak can be reached at peter.strozniak@arc-network.com.
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