RICHARDSON, Texas NCUA reported today Texans CU had first quarter net income of $5.2 million, but even with five straight quarters of profitability the one-time $2 billion credit union run by NCUA the past two years still has a $15 million hole.
The one-time Texas Instruments employees’ credit union continues to be propped up by a $60 million emergency loan from NCUA, which it is able to count as net worth. Even still, it had $14.7 million in negative equity and $16.1 million in negative undivided earnings at March 31, according to NCUA.
Buried by $150 million of losses from 2007 through 2011 on its member business loan portfolio, Texans was taken under conservatorship by NCUA in April 2011.
Likewise, AEA FCU, a one-time $440 million Tucson, Ariz., credit union run by NCUA under conservatorship for two years, has reported positive income for the past year—a $796,000 for the first quarter of 2013—but remains deep under water despite a $20 million NCUA emergency loan. At March 31, AEA had negative $9.9 million in equity and negative $9.9 million in undivided earnings.
That means both credit unions continue to operate solely because of NCUA assistance.
The financial conditions of other big NCUA conservatorships are mixed:
California’s Arrowhead CU reported a $5.7 million net for the first quarter and 9.2% net worth on $754 million of assets at March 31.
Florida’s Keys FCU reported a tiny $18,938 net for the first quarter and net worth of just 3.6% on $129 million of assets.
