The $1.4 billion Texans Credit Union, currently operating under conservatorship, reported strong financial improvement for 2013 by posting a net income of $23 million, the NCUA announced on Tuesday.
The agency said Texans Credit Union increased its net worth ratio, expanded loans and shredded distressed assets.
“The credit union's consumer loan portfolio grew by more than $19 million. Total assets at the end of the year stood at more than $1.4 billion. Texans' net worth ratio at year's end was 3.64%. More than $200 million in distressed assets have been divested since early 2012,” said an NCUA release on Tuesday.
The NCUA placed Texans into conservatorship in April 2011 to address service and operational weaknesses. It hit rock bottom financially in December 2011 when it reported a 1.07% net worth ratio and double-digit loan quality ratio.
“Consistent and sound financial management by the leadership team continued to produce strong results for Texans,” said C. Keith Morton, NCUA Region IV director and agent for the conservator, on Tuesday.
“We're pleased with Texans' progress through the rebuilding process and especially with the outcome of 2013's plan. The credit union is on the right path. In 2014, the credit union will continue to focus on members, introduce new services and operate efficiently.”
The NCUA sued former Texans CEO David Addison in December 2012, alleging breach of fiduciary duty and gross negligence, and claiming that the credit union's failure resulted from Addison's poor management decisions.
In December 2013, the U.S. District Court in Dallas filed an amended order that said if the parties do not settle by March 3, the case will be ordered to mandatory, but non-binding, mediation. Should the case go to trial, the court set a four-week September 2014 docket.
But even if the trial should go to court, don't expect to learn any new juicy details about Addison or his management decisions at Texans. Judge Joe Fish signed a Joint Protective Order Oct. 18, 2013, that will allow both parties to designate discovery materials as confidential if they concern or relate to confidential, proprietary and/or trade secret information.
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