RICHARDSON, Texas -- NCUA said this morning that Texans CU, the one-time $2.2 billion credit union it has run under conservatorship since April 2011, broke into the black for 2012 to the tune of $24.2 million.
That follows losses of $88.7 million for 2011, $39.4 million for 2010, $51.6 million for 2009 and $44.4 million for 2008—total losses of $225 million for the previous four years.
“We’ve restructured Texans, while continuing our focus on member service and attracting top-notch talent,” said Keith Morton, NCUA Region Four Director and agent for the conservator. “As we begin 2013, we are encouraged by the credit union’s positive financial results and look forward to many new product and service enhancements, such as remote deposit capture, online account opening and debit card purchase rewards.”
However, the credit union, which is operating with a $60 million emergency loan from NCUA, still has negative undivided earnings of $21.4 million and negative equity of $19.4 million. But under legislation enacted in 2011, NCUA is able to count its own emergency loan as net worth, thus giving Texans a net worth ratio of 2.68%, and not negative. That means that Texans has no reserves of its own, absent the NCUA assistance, and is technically insolvent.
More than half of the $112.9 million difference between the performance in 2012 and 2011 is related to the provision for loan loss reserves, with a decrease of $56.5 million for the provision for 2012.
Texans, which celebrates its 60th anniversary this year, was chartered to serve employees of Texas Instruments and now serves residents of Collin, Dallas, Grayson, Rockwall, Travis, Williamson counties and parts of Denton County.
Texans, which now has $1.4 billion in assets, is one of a handful of big credit unions being run under NCUA conservatorships, including Arrowhead Central CU, AEA FCU and Keys FCU.