RALEIGH, N.C. — Civic Federal Credit Union’s financial performance continues to draw media attention and scrutiny in this state following a $123.7 million net loss at the end of 2025.
The credit union, which became an independent institution last year, saw assets fall to $3.3 billion from $4 billion at the end of 2024, while membership declined 12.8% — a loss of 52,345 members — to 355,581, BusinessNC reported.
BusinessNC said the results “defied the expectations of leadership” ahead of Civic’s early June merger with Local Government Federal Credit Union that created the independent entity.
As the CU Daily reported earlier, membership declines followed service disruptions during the transition, including technology glitches that generated roughly 500,000 member calls and overwhelmed member service lines.
Civic CEO Dwayne Naylor, a 40-year credit union veteran, also retired in 2025.
‘Moving in Right Direction’
In a statement to BusinessNC, Civic said it is “moving in the right direction — and results will continue to improve in the weeks and months ahead,” adding that leadership and its board remain focused on a “member-first approach.”
Break from SECU
As previously reported and cited by BusinessNC, the merger ended Local Government FCU’s long-standing affiliation with Raleigh-based State Employees’ Credit Union (SECU), the world’s second-largest credit union, which had provided back-office support and other services for an annual fee totaling $63 million in 2024. Local Government members had also been able to access certain services through SECU branches.
Local Government leaders had concluded several years earlier that separating from SECU would benefit the smaller credit union, despite ending members’ free access to the larger institution’s branch network, BusinessNC reported.
Local Government originally launched Civic in 2018 as an affiliated digital operation focused on small-business lending — a service not offered by SECU or Local Government — and later added 11 branches based on member feedback.
Operational Strains, Rising Delinquencies
More than 400,000 Local Government member accounts were transferred to Civic last June. The transition produced unexpected expenses, including about $1 million spent to overnight debit cards to correct member addresses, BusinessNC reported.
Civic is also facing deteriorating loan performance. As of Dec. 31, about $225 million in loans were at least 60 days delinquent, up from $211 million three months earlier. That represents more than 7.5% of Civic’s $2.95 billion loan portfolio — far above the sub-1% delinquency rates common at most banks and credit unions.
The credit union reported a net worth ratio of 7.07%.
‘Decisive Action’
Civic said it has taken “decisive action” to address issues, reduce operating expenses and strengthen long-term stability, according to its statement cited by BusinessNC.
SECU Reports Stronger Results
Separately, SECU reported a net income of $401 million in 2025, according to its year-end 5300. Loans more than 60 days delinquent totaled $991 million, or about 1.7% of assets. The credit union reported $5.5 billion in reserves and a net worth ratio of 10.1%.
In a recent member newsletter, SECU CEO Leigh Brady said the institution has experienced “strong growth in membership, loans, and deposits,” BusinessNC reported, and is preparing to launch a new digital platform.
SECU now has 2.94 million members and about 7,700 full-time employees, up from roughly two-million members and 5,526 employees in June 2015, NCUA data show.
