CHARLOTTESVILLE, Va.—Despite an improving asset quality profile for the sector, a handful of credit unions are still struggling with high levels of nonperforming assets, according to analysis by SNL Financial.
SNL said the median "Texas ratio" (nonperforming assets divided by the sum of total equity and loan loss reserves) for all credit unions was 4.56% at June 30, down 12 basis points from March 31 and down 70 basis points from the year-ago quarter. Median delinquency levels have also gotten better, now coming in below 1.00%.
A total of 26 credit unions are operating with Texas ratios in excess of 100%, SNL reported, fittingly led by Texans Credit Union, Richardson, which has a Texas ratio of 777.64%. Among the group of 26 credit unions, it has the biggest linked-quarter increase in the Texas ratio; is far and away the largest by assets, at $1.44 billion; and has the second-highest charge-off ratio of 12.14%, SNL said.
Texans Credit Union was placed in conservatorship in April of 2011.
Other credit unions with high Texas ratios in the SNL analysis are the $257.7-million Chetco FCU in Harbor, Ore. (458.39%), White Plains, N.Y.-based Union Baptist Greenburgh Federal Credit Union with the highest delinquency rate of 50.43%; Houston-based Norman Mathis Credit Union, with the highest net charge-off ratio of 14.26%; and Philadelphia-based Allen AME Federal Credit Union, with a reserves-to-NPAs ratio of zero.
Among the 26 credit unions, the largest decrease in the Texas ratio compared to the prior quarter belongs to Redwood City, Calif.-based Polam Federal Credit Union, according to SNL Financial.