Weiss Ratings: Two Credit Unions Placed in Conservatorship, Bringing Total under Watch to Three for the Year

JUPITER, Florida (April 18, 2011) — Last week, regulators placed two credit unions in conservatorship: Texans Credit Union, Richardson, Texas and Vensure Federal Credit Union, Mesa, Arizona. This brings the total number of U.S. credit union closures to six with an additional three in conservatorship for 2011, which is one ahead of last year’s pace. 

Texans Credit Union, Richardson, Texas, with assets just over $1.5 billion at December 31, 2010 was rated E- (“Very Weak”) for the last two quarters by Weiss Ratings.  It reported a loss of $39.4 million through December 31, 2010.  Texans Credit Union had a well-below-NCUA-mandated net worth (7%) ratio of 2.67% and total capital of $60.8 million.  Nonperforming loans to core capital made up over 165% of its loan portfolio and it had charge-offs to loans of 3.0%.  Texans Credit Union was placed in conservatorship by the National Credit Union Administration (NCUA) on April 15th.

Vensure Federal Credit Union, Mesa, Arizona, with assets of $2.7 million at December 31, 2010 was rated B (“Good”) for the last two quarters by Weiss Ratings.  Vensure FCU was placed in conservatorship by the NCUA on April 15th.  At that time, Vensure’s assets had jumped to more than $4.7 million compared to $2.7 million at December 31, 2010, indicating the credit union may need help managing its growth, although no specific reason was cited for the conservatorship. The institution reported a profit of $592 thousand through December 31, 2010.  It had total capital of $737 thousand and had no nonperforming loans or charge-offs. 

Weiss rates 529 credit unions an E+, E, or E-.  Consumers can view the full list at www.weissratings.com.

Weiss Ratings, the nation’s leading independent provider of bank, credit union and insurance company ratings, accepts no payments for its ratings from rated institutions.  It also distributes independent ratings on the shares of thousands of publicly traded companies, mutual funds, closed-end funds and ETFs.