First quarter financial reports showed two credit unions conserved by the NCUA in January continue to lose money.
The $1.4 million People Trust Community Federal Credit Union in North Little Rock, Ark., is critically undercapitalized after losing more than $700,000, with its net worth plunging to negative 91.10%. Although California's $14.9 million Beverly Hills City Employees Federal Credit Union remains well capitalized at 12.88%, it also posted a loss of $111,000.
At the end of March, People Trust Community Federal Credit Union reported a loss of $724,906, compared with a first-quarter loss of $138,281 in 2025, according to NCUA financial performance reports. At the end of last year, the credit union posted a loss of $927,691.
Net interest income in the first quarter showed a slight loss of $1,233, while its credit loss expense totaled $244,285. That compareds with net interest income of $130,112 and a credit loss expense of $3,751 in the same quarter last year.
People Trust Community's noninterest expense totaled $507,564 in the first quarter, up from $288,167 a year earlier. Office operations accounted for $460,254, while professional and outside services totaled $29,111. The Call Report did not list any employee compensation or benefits expenses.
Loans at People Trust Community declined to $819,534 in the first quarter, down from $841,478 in the first quarter of 2025. Year-to-date loan charge-offs totaled $247,419, with recoveries of $17,800, resulting in net loan losses of nearly $230,000. Loans delinquent 60 days or more totaled $168,914, according to the credit union's first-quarter Call Report.
People Trust Community's total equity at the end of the first quarter was negative $1,324,823, compared with $235,381 a year earlier.
Beverly Hills City Employees FCU posted net interest income of $150,320 at the end of the first quarter, compared with $148,491 in the same period last year. However, noninterest expenses rose to $269,322 from $198,291 a year earlier.
The credit union's loans declined from $7,377,294 in the first quarter of 2025 to $6,266,921 in the first quarter of 2026. During the same period, shares and deposits fell from $14,639,059 to $13,148,759, while equity dropped from $2,083,032 to $1,595,281, according to NCUA financial performance reports.
One of the few positive metrics for Beverly Hills City Employees FCU was membership growth, which increased more than 39%, from 1,255 at the end of the first quarter last year to 1,750 by the first quarter this year, Call Reports showed.
Peter Strozniak can be reached at peter.strozniak@arc-network.com.
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