Nearly a year after being placed in conservatorship, it appears Texans Credit Union has received $60 million in subordinated debt to keep it afloat.
The $1.4 billion credit union in Richardson, Texas, reportedly received the infusion in December 2011, according to its latest NCUA Call Report. The $60 million subordinated debt is included in Texans’ net worth.
The credit union’s total equity was negative $46.5 million as of December 2011. It appears that if Texans had not received the $60 million, it would be declared insolvent with a net worth of minus $44.7 million.
Texans has experienced significant losses in net income since 2008 going from negative $44 million to negative $51.5 million at the end of 2009. The downward spiral continued into 2010 with the credit union reporting a $39 million loss at the end of that year. As of December 2011, Texans had a negative $88 million loss in net income.
Up to its NCUA conservatorship in April 2011, the credit union’s financial troubles stemmed in large part to it commercial loan portfolio losses.