Accounts Remain Protected by Share Insurance Fund
Alexandria, VA (September 30, 2026) ―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.
Liquidation Notice to Creditors of Jackson Area Federal Credit Union