The credit union industry, like the banking industry, is shrinking in number.
U.S. credit unions are generally growing, profitable, and financially stronger, with fewer troubled institutions.
Although, isolated failures do still occur, and when they do, lower-income communities can be hit the hardest.
JRN by Bauer 43:24
New Credit Union Ratings Are Out
Credit union star-ratings have now been updated based on March 31, 2026 financial data.
Despite losing over 150 federally insured credit unions to mergers and acquisitions, including 44 with low-income designations over the previous year, our nation’s credit unions had a mostly positive first quarter.
Federally insured credit unions added 2½ million members during the 12-month period. Assets at these institutions rose by $116.7 billion while total shares and deposits grew by $102.3 billion.
Total shares and deposits grew by 5.1%, however, the uninsured portion grew at the much faster rate of 13.7%.
Some of the highlights include:
|
At March 31, 2026 |
Change | from 1 Year Ago | At March 31, 2025 | |
| # of federally insured CUs |
4,250 |
Down |
3.6% |
4,411 |
| # with a low-income designation |
2,379 |
Down |
1.8% |
2,423 |
| # with assets > $500 million |
748 |
Up |
1.1% |
740 |
| Membership |
145.8 million |
Up |
1.8% |
143.2 million |
| Total Assets |
$2.48 trillion |
Up |
4.9% |
$2.37 trillion |
| Total Loans |
$1.73 trillion |
Up |
4.6% |
$1.65 trillion |
| Average Loan Balance |
$19,557 |
Up |
4.6% |
$18,699 |
| Delinquencies to Loans |
0.85% |
Up |
5 basis points |
0.80% |
| Total Shares & Deposits |
$2.12 trillion |
Up |
5.1% |
$2.02 trillion |
| Uninsured Shares & Deposits |
$214.6 million |
Up |
13.7% |
$188.7 million |
| Aggregate Capital Ratio |
11.24% |
Up |
29 basis points |
10.95% |
|
YTD Net Income |
$20.4 billion | Up | 30.5% |
$15.7 billion |
In addition, credit unions rated 2-Stars or below (and therefore represented on Bauer’s Troubled and Problematic Credit Union Report), now represent just 1.59% of the industry. That’s down from 2.0% a year ago.
However, three credit unions previously operating under NCUA conservatorship, no longer exist. Zero-Star Beverly Hills City Employees FCU, CA (9823) was merged into 5-Star Nuvision FCU, Huntington Beach, CA (566) on June 1st.
The other two, Zero-Star Copper & Glass FCU, Glassport, PA (2796) and N.R. Peoples Trust Community FCU, North Little Rock, AR (24940) were closed and “involuntarily” liquidated. That brings us to…
The Solomon Grundy of the Credit Union Industry:
For those of you unfamiliar with the old English nursery rhyme, it was originally used to teach the days of the week. Here is the original poem as it was first published in 1842:
Solomon Grundy,
Born on a Monday,
Christened on Tuesday,
Married on Wednesday,
Took ill on Thursday,
Grew worse on Friday,
Died on Saturday,
Buried on Sunday.
This is the end
Of Solomon Grundy.
First, let’s answer the most obvious question, “No”. A credit union did not fail in seven days any more than a little boy got married at three days old. The second credit union failure of 2026 was a whirlwind, nonetheless.
Born on a Monday,
N.R. People Trust Community Federal Credit Union, North Little Rock, AR (24940) received its NCUA charter on September 16, 2022, to serve lower-income communities in Central Arkansas. Promoted as the state’s first Black-owned financial institution, it opened that December to considerable fanfare.
Christened on Tuesday,
Arlo Washington, the founder and CEO of People Trust Community FCU, was “excited to focus on eliminating economic barriers by providing underserved and underbanked individuals with financial opportunity.”
Married on Wednesday,
By June 30, 2023, People Trust Community FCU had over $5 million in assets and was well-capitalized. The following June, it posted its first quarterly profit. Then came 2025 and everything changed.
Took ill on Thursday,
Both assets and net worth at the celebrated credit union were cut in half. Its capital ratio began to fall as a result.
Grew worse on Friday,
Then loan quality took a nosedive. Between June 30 and September 30, 2025, the Texas ratio at People Trust Community FCU went from 8.33% all the way up to 184.34%; it’s Bauer’s Adjusted CR dropped from 6.48% to -2.75%.
Died on Saturday,
On January 16, 2026, the NCUA placed People Trust Community FCU into conservatorship. Member services continued at a nearby branch of 5-Star Arkansas Federal Credit Union, Little Rock, AR (10920), but the NCUA was now faced with a decision, could this credit union be saved, or was it too far gone?
Buried on Sunday.
It took just three months. On April 30, 2026, the NCUA determined the credit union was insolvent and made the decision to liquidate it. At that time, the credit union had 1,830 members and assets of $1.454 million.
This is the end of People Trust Community FCU.
It’s a very sad ending for all involved, Arlo Washington, the credit union, and especially the community that was depending on it.
The NCUA will sometimes place a credit union into conservatorship in an attempt to save it. If the stars align, the credit union can be later returned to its members. It rarely works but is worth the effort. The NCUA has placed several credit unions into conservatorship since January 1, 2025. It has only released one back to its members during that time (3-Star Valwood Park FCU, Carrollton, TX (21788). The rest were either merged into stronger institutions or more likely, as was the case with People Trust, they are “involuntarily” liquidated.
Only one credit union currently remains under NCUA conservatorship. It is Zero-Star Jackson Area FCU, Jackson, MS (8445) which went into conservatorship on May 6, 2026. As was the case with People Trust, Jackson Area FCU has both a low income and minority depository designation.