The $1.4 million People Trust Community Federal Credit Union in North Little Rock, Ark., has been liquidated, the NCUA said Thursday.
The federal agency said it made the decision after determining the credit union was insolvent and in violation of numerous provisions of the Federal Credit Union Act and NCUA regulations, including operating in an unsafe and unsound manner.
The NCUA conserved People Trust Community in January.
First quarter financial performance reports showed the credit union was critically undercapitalized after losing more than $700,000, with its net worth plunging to negative 91.10%.
At the end of March, People Trust Community 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 compared 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.
People Trust Community served 1,830 members and was chartered in 2022.
Members with questions about their insurance coverage may contact the NCUA's Consumer Assistance Center at 800-755-1030. The center answers calls Monday-Friday between 8 a.m. and 5 p.m. ET. Members can learn more about their Share Insurance Fund coverage and use the Share Insurance Estimator anytime at the NCUA's consumer website, MyCreditUnion.gov.
Peter Strozniak can be reached at peter.strozniak@arc.network.com.
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