Jackson Area FCU Is No More As NCUA Liquidates Troubled Credit Union
By CU Today Staff —
JACKSON, Miss.—NCUA has liquidated Jackson Area Federal Credit Union, bringing an end to the troubled $61-million institution less than five months after regulators seized control and just two days after its former CEO pleaded guilty to federal charges stemming from a multimillion-dollar embezzlement scheme.
The NCUA said Wednesday it facilitated a partial purchase and assumption with Dothan, Ala.-based Five Star Credit Union, which immediately purchased some JAFCU assets and assumed its share accounts. JAFCU was subsequently liquidated.
The agency said it determined JAFCU was insolvent, was operating in an unsafe and unsound manner and was in violation of numerous provisions of the Federal Credit Union Act and NCUA regulations. NCUA had placed the credit union into conservatorship May 6 and said that after several months of analysis and efforts to stabilize the institution, it concluded there was “no prospect for restoring viable operations.”
The liquidation follows a stunning deterioration in JAFCU’s finances. As CUToday.info previously reported, revised June 30 Call Report data showed assets had plunged from $162.4 million at year-end 2025 to $60.9 million, while JAFCU recorded a $103-million year-to-date loss and negative net worth of $88.5 million. The financial collapse came as the NCUA pursued a civil lawsuit seeking to recover funds it alleges were misappropriated from the credit union.
The liquidation also comes two days after former JAFCU President/CEO Leigh Bridges pleaded guilty to three federal charges in a criminal case involving what prosecutors described in court as a more than $69-million embezzlement scheme that left the credit union insolvent. As CUToday.info reported Monday, Bridges pleaded guilty to theft from a federal credit union, making false statements involving a federal credit union and filing a false tax return. The NCUA’s separate civil case against Bridges, her husband, Chad Bridges, and former branch manager Tina Funez has alleged losses of approximately $95 million.
Five Star, which will take over the member accounts, reported 68,823 members and $1.261 billion in assets in its most recent Call Report, according to the NCUA.
"Five Star Credit Union has a strong track record of successfully serving our members and we are excited for the opportunity to expand into Mississippi," said Bob Steensma, CEO of Five Star Credit Union. “This move allows us to serve a membership base that closely aligns with our existing communities and values, while living out our purpose to brighten the financial future of the communities we serve.”
Originally reported by CU Today.