NCUA liquidates Indianapolis’ Newspaper FCU

The National Credit Union Administration on Wednesday liquidated Indianapolis’ Newspapers Federal Credit Union, making it the first credit union to be closed by the regulator this year.

The agency placed the $6.4 million-asset institution into conservatorship in January, citing unsafe and unsound business practices there. The credit union had posted year-end losses for the last several years, but losses spiked in 2020, reaching nearly $1 million, according to call report data from the NCUA. That was driven in part by a surge in charge-offs, jumping from nearly $34,000 in 2019 to just over $500,000 last year.

Elements Financial FCU in Indianapolis immediately assumed most of INFCU’s deposits, which remain protected by the National Credit Union Share Insurance Fund. No interruption in member services are expected. The NCUA also retained a portion of the credit union’s shares and all of its loans, and has contracted with Statebridge Company for loan servicing.

A press release form the agency said the decision to liquidate Indianapolis’ Newspaper FCU and discontinue operations was made after determining the institution was insolvent and had no prospects for restoring viable operations on its own.

The credit union served more than 1,100 members at the time of its liquidation, primarily current and former employees of the Indianapolis Star newspaper and a few other select employee groups.

Elements Financial held assets of more than $2 billion and served about 116,000 members prior to absorbing parts of INFCU.