The tiny Indianapolis’ Newspaper Federal Credit Union in Indianapolis, Ind., conserved in January, on Wednesday became the first federally insured credit union closed in 2021, its federal regulator announced.
The National Credit Union Administration (NCUA) in January said it was conserving the credit union because of “unsafe and unsound practices” at the credit union. On Wednesday, it said it decided to liquidate “after determining the credit union was insolvent and has no prospect for restoring viable operations on its own.” It said the credit union’s most recent call report showed it had $6.4 million in assets and 1,143 members.
Chartered in 1961, the credit union primarily served current and past employees of the Indianapolis Star and a few other select employee groups in Indianapolis, the NCUA said.
The NCUA said most of the credit union’s shares were immediately assumed by the $2 billion-in-assets Elements Financial Federal Credit Union, also of Indianapolis. A portion of shares was retained by the NCUA.
The regulator said it will also retain all of Indianapolis’ Newspaper FCU’s loans, with Statebridge Company, LLC, to perform loan servicing and take loan payments from the credit union’s members. Statebridge Company is in Denver.