NORTH LITTLE ROCK, Ark. ―Following legal challenges by its former CEO, NCUA has liquidated People Trust Community Federal Credit Union in North Little Rock, Ark.
The agency said it made the decision to liquidate People Trust Community FCU—which had approximately $1.45 million in assets as of its most recent 5300–after determining the credit union was insolvent and in violation of numerous provisions of the Federal Credit Union Act and NCUA Regulations, including operating in an unsafe and unsound manner.
As the CU Daily reported here, just three years after it was chartered and with a 2% net worth ratio, NCUA took over PTCFCU in mid-January. As of Q3 2025, People Trust reported a $356,506 loss
As the CU Daily reported earlier, the credit union’s former CEO, Arlo Washington, filed lawsuit Jan. 23 in the U.S. District Court for the Eastern District of Arkansas challenging NCUA’s conservatorship, but was not successful.
The credit union’s approximately 1,800 members are now being served by Arkansas Federal Credit Union.
