NCUA Liquidates Indianapolis Newspaper Federal Credit Union
Elements FCU assumes most shares of INFCU, which lost more than $900,000 at the end of 2020.
In less than three months after it was conserved, the $6.3 million Indianapolis’ Newspaper Federal Credit Union of Indianapolis, Ind., was liquidated, the NCUA said Wednesday.
INFCU posted a loss of $990,936 at the end of last year, according to NCUA financial performance reports.
The $2 billion Elements Financial Federal Credit Union, also based in Indianapolis, assumed most of INFCU’s shares, the independent federal agency said.
In January, the NCUA placed INFCU into conservatorship because of unsafe and unsound practices, which were not specified.
At the end of last year, the credit union recorded $501,465 in loan charge-offs and only $13,990 in loan recoveries, according to INFCU’s 2020 fourth quarter Call Report.
From 2016 to 2020, INFCU’s total loans and assets declined, NCUA financial performance reports showed.
However, the credit union’s full-time employee salary and benefits amounted to $141,769 at the end of 2020, more than three times the peer average of $47,769, according to NCUA financial performance reports. At the end of last year, INFCU employed only one person, the credit union’s fourth quarter Call Report showed.
Chartered in 1961, INFCU served 1,143 members from various select employee groups throughout the greater Indianapolis area.