Credit unions which own the $955 million Town North Bank may face a call for additional capital to support it going forward, according to analysts asked to review the bank's financial reports.
The financial analysts stressed that they based their observations of the bank's financial health solely on its reported data and each acknowledged that the bank's true condition, as revealed in an on site audit or exam, might be better than it appeared on paper. Nonetheless, each said Town North's financial condition dictated its sale of both its large agent-issued card portfolio to Elan Financial Services in 2009 and its card transaction processing unit last week.
The Dallas based, credit union owned bank had reached the brink of being undercapitalized when it sold it card processing business on July 6.
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