NCUA places tiny Indiana credit union into conservatorship

The National Credit Union Administration has placed Richmond City Employees Federal Credit Union in Richmond, Indiana, into conservatorship.

The regulator announced Tuesday that it will temporarily take charge of the $8 million-asset credit union to address concerns over unsafe and unsound business practices. 

"While continuing normal member services, the NCUA will work to resolve issues affecting the credit union's operations," the agency said in a press release Tuesday.

With 836 members, Richmond City Employees Federal Credit Union serves the city's workers and various select employee groups in the greater Richmond area.

The credit union is the third put into conservatorship by the regulator in 2022. The NCUA in October took control of the $479,000-asset O.F. Toalston Federal Credit Union in Logan, West Virginia, and the $2.7 million-asset Mingo County Education Federal Credit Union in Williamson, West Virginia.

Both of those credit unions were later shuttered. 

Richmond City Employees FCU lost $495,000 in the first nine months of 2022 after earning roughly $55,000 for the same period a year earlier, according to call report data from the NCUA.

Richmond City Employees members should experience no interruption in services, the NCUA said.