RICHARDSON, Texas — Texans Credit Union said it is now in a place to start pulling its commercial lending program out of its slump.
The $2 billion credit union has taken some hits to its business loan portfolio in recent months. Approximately 90% of Texans' business loan portfolio is secured by real estate, the credit union said. Single-family homes, residential lots and companies in related businesses were financed through some of the loans. As with many other financial institutions, it was probably only a matter of time before a slowdown in consumer home sales would affect some of the credit union's commercial borrowers.
"As a result of the economy starting to falter as the consumer real estate bubble burst, our guys recognized that we would see some stress in our portfolio," said Matt Davis, executive vice president and chief marketing officer at Texans. "We stopped doing construction and development lending until we have much stronger understanding of how things will turn out. Of course, things have continued to worsen [in the consumer real estate market]."
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