RICHARDSON, Texas — The $ 1.9 billion Texans Credit Union apparently had discussions on converting to a mutual savings bank or some other form of banking institution in 2005, according to a petition filed by three former executives at Texans Commercial Capital, LLC, the credit union's CUSO.
Former Texans Commercial president/CEO John C. O'Shea, former senior vice president/CFO Paul J. Valdez, and former executive vice president/COO B. Fox have filed claims of defamation, fraud and breach of contract against the CU, CUSO and David Addison, the CU's president/CEO.
As Texans Commercial grew beyond a "temporary fix" of a participation network to avoid the 12.25% cap of commercial loans for Texans CU, one option discussed was selling the CUSO to a larger CU with a higher commercial lending cap, according to the petition. In 2005, the board approved the sale of up to 20% of Texans Capital with 5% to a CU in New York, according to the petition. The deal never went through, the petition indicated. In July 2006, Dallas-based NexBank started talks on buying the CUSO.
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At a March 2006 strategic planning meeting, CU executives met to review funding options and a potential conversion to a bank charter. The idea was discussed again in June 2006 with an investment banker from Sandler O'Neil present, said the petition.
Matthew Davis, executive vice president at Texans CU said the CU has no plans in the "foreseeable future" to convert to a bank.
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