Looking at its consumer lending success dating back to a least2004, Texans Credit Union is hoping those types of loans will helpwith its comeback.

Keith Morton, NCUA Region IV director, told Credit UnionTimes there is a strategic effort to focus on consumer lendingat the $1.42 billion credit union that has been in conservatorship since April 2011. Morton is also the agent forthe conservator.

“It was working up until 2004. The strength was in consumerlending,” Morton said. “We're taking actions to refocus.”

The Richardson, Texas-based credit union is no longer offeringcommercial loans and there are no foreseeable plans to go down thatroute again, Morton said. Texans was plagued by millions of dollarsin commercial loan losses.

The NCUA recently reported Texans had year-to-date net income of $5.87 million and $1.48billion in assets, up from $1.42 billion at year-end 2011. Theagency said the credit union's net worth also improved by 35 basispoints during the first three months of 2012, ending the firstquarter at 1.42%.

Morton said this first quarter was the first time Texans hadturned a profit since 2007. To help reach that milestone, more than$20 million in expenses were cut and five of the credit union's 19branches were closed. In the back office, among other divisions,redundant operations were eliminated, he added.

“We're hitting targets,” Morton said. “We still have a lot ofchallenges as you would expect with a conservatorship, but we'repleased with where we're at.”

The NCUA provided Texans with $60 million in subordinated debtlate last year to help stabilize its finances.