NCUA has posted Texans Credit Union financials, which was placed into conservatorship on April 15.
At the end of the first quarter, the credit union was significantly undercapitalized with a net worth ratio of 2 percent. Its net worth ratio fell by 75 basis points during the quarter.
The credit union reported a loss of $11.4 million for the first 3 months of 2011. Its return on average assets was -2.84 percent.
Its provisions for loan and lease losses were $14.4 million, an increase of almost 208 percent from the first quarter of 2010. However, despite the increase in provisions, allowances for loan and lease losses fell as net charge-offs exceeded the increase in provisions.
Texans reported net charge offs of almost $20.5 million during the first quarter. In comparison, the credit union charged off (net) $29.7 million in loans in 2010.
Delinquent loans edged higher during the first quarter. The credit union reported that $53.2 million in loans were 60 days or more delinquent or 5.91 percent of its loans were more than 60 days past due as of March 31, 2011. In comparison, $48.8 million in loans were delinquent at the end of 2010 and its delinquency rate was 5.19 percent.
The combined net charge off and delinquency rate was 14.82 percent at the end of the first quarter.
The credit union also reported holding more than $91 million in foreclosed real estate.
This is clearly a failing institution. By conserving is NCUA just delaying the the problem instead of fixing it?
ReplyDeletethese conservatorships are going to cost cu's more in the long run...
ReplyDelete...but right now its costing members.
all one has to do is see what arrowhead is paying on shares.
there are cu's NOT conserved and reporting improved earnings but its in part because theyre cost of funds is 25% of the industry average...not because theyre "healthier".