RICHARDSON, Texas – NCUA announced this morning that Texans CU, the one-time $2 billion credit union it has operated under conservatorship the past year, reported a $5.9 million net for the first quarter of the year, even as the biggest NCUA conservatorship ever continues with negative equity of $40 million.
The one-time credit union for Texas Instruments, which piled up a staggering $225 million in losses from 2008 through 2011 due to bad member business loans, slashed expenses and provisions for loan losses during the past year to emerge from the red, NCUA said.
“For the past year, we reduced expenses, streamlined operations, retooled infrastructure, and began the process of returning Texans to the core credit union business model,” said Keith Morton, NCUA Region IV Director and Agent for the Conservator, of the now $1.5 billion credit union. “We see significant progress in all of these areas, and we are very encouraged by the credit union’s positive financial results for the first quarter of the year.”
Still, the 59-year-old credit union only remains in operations because of a $60 million emergency NCUA loan, which under year-old legislation NCUA is able to count as net worth, giving it a 1.4% net worth ratio.
