Nearly a month after the NCUA placed Texans Credit Union in conservatorship, the regulator has begun the process of assessing the adequacy of the cooperative's allowance for loan and lease losses account.
Based on Texans' March 31 Call Report, the allowance decreased from $47 million to $41 million. Of the loans reviewed so far, the management team hired by the NCUA to oversee Texans has recommended additional funding. However, significant charge-offs of $21 million reduced the balance, said David Small, NCUA assistant director of public affairs. The net effect was a decrease in the March 31 balance.
"The financial statement reflects known and reasonably estimable losses, but more losses may be recognized over the next few months as we work through assessing all the assets," Small said.
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