NCUA Conserves Indiana Credit Union

The $8 million Richmond City Employees Federal Credit Union in Richmond, Ind., which posted a net income loss of nearly $500,000 at the end of the third quarter, was placed into conservatorship, the NCUA announced Monday evening.

The credit union that serves 836 members was conserved because of unsafe and unsound practices not specified by the federal agency.

According to RCEFCU’s statement of income and expense in its Call Reports, the credit union recorded a net income loss of $495,477 on Sept. 30 compared to a net income gain of $15,791, on June 30.

At the end of the third quarter, RCEFCU significantly increased its provision of loan and lease losses to $554,682, compared to its provision of loan and lease losses of $38,000 at the end of the second quarter. The credit union’s total charge-offs totaled $544,890 in Q3, compared to total charge-offs of $68,901 in Q2, Call Reports showed.

RCEFCU’s employee compensation and benefits substantially increased from $77,876 in Q2, when it had two full-time employees, to $120,094 in Q3, when it had three full-time employees. In the same quarters, the credit union’s professional and outside services jumped from $13,118 to $41,013, Call Reports showed.

For credit union officials and senior executive staff, Call Reports showed there were 25 loans outstanding for a total of $613,172 at the end of Q2, compared to 21 loans outstanding totaling $494,258 at the end of Q3.

Jayma Bright is listed as CEO of RCEFCU, according to its current profile report filed with the NCUA. Bright replaced former CEO Corrine E. Devers. The current profile report also listed nine board members, including one that serves on the supervisory committee, along with two credit union members.

RCEFCU was the third financial cooperative this year to be placed into conservatorship by the NCUA.

Member services will continue uninterrupted at the credit union’s main office at 50 N. 5th St., in Richmond.