RICHARDSON, Texas — Texans Credit Union, which has been under NCUA conservatorship since April 2011, on Tuesday said it had net income of $21.7 million in 2014.
The CU said it has posted 36 consecutive months of positive earnings, along with upward trends in loans and net worth. Last year its consumer and real estate loan portfolios grew by more than $31 million and $27 million, respectively.
Total assets at the end of the year stood at more than $1.4 billion. Texans' net worth ratio as of Dec. 31 was 4.49%.
The CU reported $23 million in net income for 2013.
NCUA noted it placed Texans into conservatorship in April 2011 to address "service and operational weaknesses." Since then, NCUA said its representatives, the CU's management team and Texans' employees have worked to "dramatically improve" the credit union's financial condition and maintain services for the credit union's more than 112,000 members in North Texas.
"Texans took a large step forward this past year," said C. Keith Morton, NCUA Region IV Director and Agent for the Conservator. "The staff and the leadership team continue to produce solid, positive results. All signs show that Texans is positioned to continue its growth and maintain an institutional culture that will offer excellent service to its members in 2015."
Huge MBL Losses
The credit union was hit by $150 million in losses on its member business loan portfolio from 2007 through 2011.
In 2011 Texans reported $88.7 million in losses, including a $3.4 million assessment to the Temporary Corporate Credit Union Stabilization Fund. Its Provision for Loan and Lease Losses that year was $57,875,109, while its net worth ratio was 1.07% ("critically undercapitalized").
Texans saw significant improvement in 2012, as it posted $24.1 million in net income after paying $1.2 million to the Stabilization Fund. Its PLLL was $1,398,000, and its net worth ratio climbed to 2.68% ("significantly undercapitalized").
In 2013, the CU had $23.2 million in net income after paying more than $1 million to the Stabilization Fund. Its PLLL was $2.9 million, and its net worth ratio improved again to 3.64% ("significantly undercapitalized").
NCUA said the credit union's consumer loan portfolio grew by more than $19 million in 2013, while more than $200 million in distressed assets were divested from early 2012 to December 2013.
Texans, chartered in 1953, operates 13 branches in the Dallas metropolitan area. Membership is open to individuals and their family members who live, work or attend school in Collin, Dallas, Grayson, Rockwall, Travis, Williamson counties and parts of Denton County. Texans also serves select employee groups within the credit union's field of membership. Texans additionally serves employees of various companies in the credit union's field of membership, including Texas Instruments, Raytheon and Ericsson.
Former CEO
In August 2014 NCUA issued a cease and desist order to David Addison, formerly the chief executive of Texans CU. Addison consented to NCUA's order without admitting fault, according to a statement from the regulator.
The order requires that Addison not become an employee of, hold any office in or serve as a board member of any federally insured CU or credit union service organization. He was fired from Texans CU in 2009. NCUA later alleged that his negligence led to the failure of the one-time $2 billion CU.
Addison later claimed in federal court that any losses that the CU suffered were not the result of CUSO purchases he made while chief executive but were the result of the economic crisis.
NCUA went on to sue Addison in a civil suit, claiming that he was "grossly negligent" in his management of the CU. The regulator has operated the CU in conservatorship for more than three years, including a $60 million emergency loan.
