Nearly a year after being placed in conservatorship, it appearsTexans Credit Union has received $60 million in subordinated debtto keep it afloat.
|The $1.4 billion credit union in Richardson, Texas, reportedlyreceived the infusion in December 2011, according to its latestNCUA Call Report. The $60 million subordinated debt is included inTexans' net worth.
|The credit union's total equity was negative $46.5 million as ofDecember 2011. It appears that if Texans had not received the $60million, it would be declared insolvent with a net worth of minus$44.7 million.
|Texans has experienced significant losses in net income since2008 going from negative $44 million to negative $51.5 million atthe end of 2009. The downward spiral continued into 2010 with thecredit union reporting a $39 million loss at the end of that year.As of December 2011, Texans had a negative $88 million loss in netincome.
|Up to its NCUA conservatorship in April 2011, the credit union's financialtroubles stemmed in large part to it commercial loan portfoliolosses.
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