NCUA Liquidated Jackson Area Federal Credit Union
The insolvency of the institution prompted a merger with Dothan-based Five Star Credit Union.
Updated on Sept. 30, 2026 in Financial Crime
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The National Credit Union Administration has liquidated the Jackson Area Federal Credit Union after determining the institution was insolvent. Five Star Credit Union has assumed the assets and share accounts of all 15,704 members.
Why it matters
The closure follows the credit union's inability to restore viable operations and violations of federal regulations. This action protects members by transferring their accounts to a more stable, solvent institution.
The National Credit Union Administration shuttered the institution following a period of conservatorship. The National Credit Union Share Insurance Fund will continue to cover individual accounts up to the $250,000 limit.
The players
National Credit Union Administration
This independent federal agency regulates, charters, and supervises federal credit unions across the United States.
Five Star Credit Union
Based in Dothan, Alabama, this financial institution provides banking services and has assumed the accounts of the Jackson Area Federal Credit Union.
Jackson Area Federal Credit Union
This chartered credit union served members in Jackson and Hinds County before being liquidated due to insolvency.
The details
The transition was finalized through a purchase and assumption agreement facilitated by federal regulators. Members of the former credit union will automatically become members of Five Star Credit Union, which operates with significantly higher total assets.
Timeline
The Jackson Area Federal Credit Union was originally chartered in 1953.
Federal regulators placed the credit union into conservatorship on May 6, 2026.
The official liquidation of the institution occurred on September 30, 2026.
Legal Context
The liquidation of this institution follows established federal protocols for managing insolvent credit unions under the Federal Credit Union Act. These procedures are frequently used by regulators to maintain stability and protect member deposits when institutions fail to meet mandatory fiscal standards.
Existing members of the liquidated credit union will have their accounts moved to Five Star Credit Union without disruption to their access. Individual balances remain protected by federal insurance up to $250,000 per account.
The takeaway
Members should expect a seamless transition to the new credit union while maintaining the same federal insurance protections. No immediate action is required by depositors to secure their funds following this consolidation.
Further reading
For additional context regarding the regulatory process, see the Financial Crime section.
More information
For more details on how balances are protected, visit the NCUA consumer share insurance coverage information.
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