First CU of year closed, another conserved
(April 2, 2021) Two supervisory actions were taken this week, the first by NCUA as it closed one credit union (the first of the year) and by the Texas Credit Union Department which conserved another.
NCUA closed tiny Indianapolis’ Newspaper FCU (in Indianapolis), initially conserved in January, on Wednesday. The $6.4 million FCU (with 1,143 members) became the first federally insured credit union closed in 2021, NCUA said. It was chartered 60 years ago and served current and past employees of the Indianapolis Star and a few other select employee groups in the city. Elements Financial FCU, also of Indianapolis – a $2 billion credit union – assumed most of the credit union’s shares; however, a portion of shares was retained by the NCUA.
In January, NCUA said the credit union was conserved because of unsafe and unsound practices. This week, the agency said liquidation was necessary “after determining the credit union was insolvent and has no prospect for restoring viable operations on its own.”
Earlier in the week, NCUA announced it was named by the Texas Credit Union Department as conservator of the $106.2 million, 12,500-member Edinburg Teachers CU (of Edinburg, Texas). The credit union serves several education-based and other employee groups as well as their family members, according to NCUA.
In a release, NCUA said it and the TCUD would work to resolve operating issues at the credit union with the goal of protecting member assets and seeking a resolution to identified problems. “Neither the Texas Credit Union Department, nor the NCUA have made any decisions about the long-term future of the credit union; however, continued service to members is a priority,” the agencies said in a joint statement.
LINKS:
Indianapolis’ Newspaper Federal Credit Union Closes, Most Shares Assumed by Elements Financial