The National Credit Union Administration (NCUA) announced Friday that Texans Credit Union, a $1.5-billion institution based in Richardson, Texas, has emerged from conservatorship and is once again under the control and direction of its members.
NCUA had initially placed Texans CU into conservatorship in April 2011 to address "service and operational weaknesses."
NCUA emphasized the resuscitation of the CU required a strong partnership between the CU leadership, and both state and federal regulators. The conservatorship, the agency added, was successful "due to the unified efforts to carefully and deliberately mitigate exposure and risk from troubled assets, improve lending controls, revitalize operations, and improve operating efficiencies."
Indeed, Texans CU's net worth position grew by more than $100 million since the end of 2011 "through very strong earnings."
Texans CU posted year-end 2015 net income of $26.6- million, marking 48 straight months of positive earnings. Last year, Texans CU also repaid the remaining $40 million of Section 208 assistance, including interest, to the National Credit Union Share Insurance Fund three years ahead of schedule.
"This is a real success story, and much of the credit goes to the hard work of Texans' leadership team, credit union staff and its members," NCUA board chairman Rick Metsger said in a statement. "Working collaboratively with the agency, Texans' leadership and staff restored their credit union's financial health, revamped operations and provided critical services to members. As a result, the credit union is now on a sound foundation."
