NCUA to Weigh All Options on Texans CU’s Future
The NCUA said while it has yet to make any decisions about the future of Texans Credit Union, a merger is one action the agency has the authority to pursue.
Other options include maintaining control until the credit union’s financial condition improves and then returning control to the members to elect a new board, said Todd Harper, director of the NCUA Office of Public and Congressional Affairs and chief policy advisor to Chairman Debbie Matz.
Harper said seeking another financial institution to partner with the credit union through either a merger or a purchase and assumption agreement is another option. Liquidating the credit union and dispersing assets to the members would be another consideration.
“Members can continue to conduct business as usual at Texans Credit Union. Moreover, in its role as conservator, NCUA is primarily focused on improving the financial condition of the credit union in order to return control of the credit union to the members to elect a new board,” Harper said in a statement. “In other words, NCUA is working to keep the credit union open not only today, but also in the long term.”
Harper said besides conserving member assets and preserving their interests, the NCUA wants to also protect the National Credit Union Share Insurance Fund.
Amid speculation of potential merger partners, the $6.1 billion Security Service Federal Credit Union in San Antonio said it has not had any discussions about a Texans CU merger.
On April 15, the NCUA placed the $1.6 billion Texans CU in conservatorship.