The conserved Jackson Area Federal Credit Union posted a net loss of $91.7 million, according to the NCUA's first quarter financial performance reports.

The loss was large enough to lower the industry's return on average assets by more than one basis point for the first quarter of the year. CU Times previously reported the industry ROA was 0.86% for Q1, but with Jackson Area's net loss included, it fell to 0.85%. In addition, NCUA records showed Jackson Area had by far the biggest net loss among the nation's 4,309 credit unions.

The federal agency placed the Jackson, Miss.-based credit union into conservatorship on May 6, citing unsafe and unsound practices. The NCUA assured members their deposits were protected by the share insurance fund while their credit union, under the federal regulator's control, continued serving members. At that time, the NCUA reported the credit union had $162 million in assets, which was based on Jackson Area's fourth quarter Call Report.

However, the credit union's first quarter Call Report was not certified and validated until May 15 by NCUA Problem Case Manager Ethan Meyer, nine days after the credit union was conserved.

The Q1 Call Report showed the credit union held $71.3 million in assets and reported negative equity of $77 million.

The report also showed a net loss of $91,737,477.

Under the non-interest expense section, the credit union recorded $92,025,914 in miscellaneous non-interest expense. No explanation was given for this expense.

Other non-interest expenses such as employee compensation and benefits, office occupancy, operations, loan servicing, professional services, travel, conferences, education and promotion totaled $1,216,918, according to the Q1 Call Report.

Insured shares and deposits totaled $140,457,793 while uninsured member shares and deposits totaled $7,720,621, according to the Q1 Call Report.

Jackson Area's net worth classification was listed as critically undercapitalized with a net worth of negative 107.94% in the first quarter compared to its net worth of 9.51% in March 2025.

Tina Hunter is listed as the current CEO.

Jackson Area's 32 employees run three branches and serve 15,704 members.

Peter Strozniak can be reached at peter.strozniak@arc-network.com.

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