Regulator asked Five Star to take over JAFCU.
The National Credit Union Administration issued the following statement.
The National Credit Union Administration (NCUA) today facilitated a partial purchase and assumption between Jackson Area Federal Credit Union in Jackson, Mississippi, and Five Star Credit Union in Dothan, Alabama.
Five Star Credit Union immediately purchased some assets and assumed Jackson Area Federal Credit Union’s share accounts. Jackson Area Federal Credit Union was subsequently liquidated. Members transferring to the new Five Star Credit Union will experience no interruption in services.
All accounts remain insured by the National Credit Union Share Insurance Fund (Share Insurance Fund). Administered by NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. IRA and KEOGH retirement accounts are separately insured up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.
Members with questions about their accounts may contact Five Star Credit Union at 888.619.1711 from 9 am - 5 pm. Members with questions about their Share Insurance Fund coverage can find additional information in the Share Insurance Coverage section of NCUA’s MyCreditUnion.gov consumer website.
NCUA made the decision to liquidate Jackson Area Federal Credit Union after determining the credit union was insolvent and in violation of numerous provisions of the Federal Credit Union Act and NCUA Rules and Regulations, including operating in an unsafe and unsound manner.
On May 6, 2026, NCUA placed Jackson Are Federal Credit Union into conservatorship and appointed itself as the conservator. The agency worked to stabilize the credit union and address issues affecting its safety and soundness. After several months of analysis and stakeholder engagement, NCUA made the decision to liquidate Jackson Area Federal Credit Union and discontinue its operations after determining they were insolvent and had no prospect for restoring viable operations.
Jackson Area Federal Credit Union served 15,704 members and had assets of approximately $60 million, according to its most recent Call Report. Chartered in 1953, Jackson Area Federal Credit Union served employees of the City of Jackson, Mississippi, as well as employees and elected or appointed officials of Hinds County, Mississippi including 38 distinct groups, primarily composed of local government employees.
Five Star Credit Union is a federally insured state credit union with 68,823 members and assets of $1.261 billion, according to the credit union’s most recent Call Report.
Kingfish note: No surprise here as JAFCU reported a $103 million loss in July thanks to the shenanigans of Leigh Bridges. The Credit Union Times provided more information:
Five Star was contacted by NCUA’s special actions team in late May because the credit union had indicated on NCUA’s merger registry that it was open to mergers and acquisitions, including opportunities in neighboring states. Five Star signed a nondisclosure agreement and joined an initial call with other credit unions interested in evaluating Jackson Area....
Five Star conducted its due diligence and submitted its bid in July. After its proposal was selected, Steensma said, Five Star personnel had been on the ground operating Jackson Area since Sept. 1, giving its accounting, lending and retail teams an unusually close look at what they would ultimately inherit.
How bad were the books? Baaaaad:
The numbers underscore why this could never have been an ordinary merger.
Jackson Area’s June 30 NCUA Call Report showed just $60.87 million in assets against $149.35 million in liabilities. Those liabilities included $97.99 million in member shares, $38.25 million in nonmember deposits and $12.95 million in borrowings. Its equity stood at negative $88.48 million.
The Call Report classified Jackson Area as “critically undercapitalized” and “uncapitalized,” with a negative 145.36% net worth ratio.
The asset side was strikingly small by comparison: Jackson Area reported approximately $42.11 million in loans and total assets of $60.87 million. The June report also reflected the accounting recognition of the staggering losses that had emerged at the institution....
This was a purchase and assumption.
The National Credit Union Share Insurance Fund is absorbing the financial difference necessary to make the transaction work rather than passing Jackson Area’s deficit to Five Star’s existing membership Article
Five Star retained all 23 JAFCU employees and is keeping all three branches open.
16 comments:
a one woman take-down.
Emergency meeting of the Street Justice Committee will convene shortly.
I cannot believe this woman traded her good life for confinement, wearing a jumpsuit, prison flip flops, and sleeping 2 feet from a stainless steel toilet.
you would figure they would tell us first..........About to switch to a new fraud bank I guess.......
Kudos to Five Star for their efforts to calm the seas.
A movie should be made about her.
Presumably retaining all the JAFCU employees means none of them have been found to be connected to the actions of Leigh Bridges, and their retention keeps familiar personnel for the credit union’s members.
But then there is Tina. Where is Tina?
Agree, 11:59. Very nice move to retain the employees and keep the 3 branches open.
They are rated 5-stars.
She and Lamar Adam’s would make a great pair
This type of takeover is common practice for banks and credit unions. Regulators ask others to take over one more than one thinks. Most times people don’t know it.
Five star is a 1.3 billion dollar credit union. This takeover wasn't done to be nice, it was done to expand into the market. Several MS based credit unions put in bids and would have been good geographic fits, I guess five star had the bid that would cost the NCUA the least though.
@12:37
Maybe American Greed will run an episode about it.
Adams, not Adam's
Sorry, I am not putting my money in an institution called "5 Star" anything.
12:37, The Leigh & Chad Saga would make a great old-style Lifetime Movie (before they started with the graphic close-ups of smoking and spitting - after which I never watched another Lifetime Movie).
And where is Dominick Dunne when we need him? If Dr. Ken D. Berry can train his personal AI to be him (it does a great job), then surely AI can read and watch everything Dominick Dunne, and write a sequel to Mansions of Limbo. Half the personalities in that book, are eerily similar to Leigh Bridges.
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