Days after the NCUA reported an uptick in Texans Credit Union's financials, an economist with the American Bankers Association said the cooperative is still struggling.

Keith Leggett, ABA vice president and senior economist, said the $1.4 billion credit union in Richardson, Texas, is “critically undercapitalized” and delinquencies continue to rise.

In his April 23 Credit Union Watch blog, Leggett said Texans charged off $1.1 million during the first quarter.

“You would expect to see a jump in future charge-offs as you are talking about over $61 million in the six month or more past due bucket,” Leggett wrote.

He also cited a rise in total delinquent loans during the first quarter from $74.3 million to $79.4 million. Past due loans have also increased, Leggett pointed out.

“Moreover, the improvement in profits are due to a significant decline in its provisions for loan and lease losses during the first quarter compared to a year earlier,” Leggett wrote.

On Monday, the NCUA said Texans posted year-to-date net income of $5.87 million and $1.48 billion in assets, up from $1.42 billion at year-end 2011. The agency said Texans' net worth also improved by 35 basis points during the first three months of 2012, ending the first quarter at 1.42%.

Texans has been in conservatorship since April 2011.

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American Bankers Association Downplays Texans Credit Union&rsquo;s Recovery

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American Bankers Association Downplays Texans Credit Union’s Recovery