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Members United Corporate adds OTTIs in April
WARRENVILLE, Ill. (5/20/10)--Members United Corporate FCU's unaudited financial statements as of April 30 have been announced, along with year-end 2009 audited financials, with additional other-than-temporary-impairment (OTTI) charges depleting membership capital shares (MCS) by 96.9%. Members United's assets totaled $9.5 billion as of April 30, with $4.1 billion of that held in cash and cash equivalents and overnight deposits with U.S. Central FCU, $3.5 billion in marketable securities, $0.7 billion in loans to members, $1.1 billion in term deposits at U.S. Central, and $0.1 billion in accrued income and other assets, according to the financial statements on the corporate's website. The corporate credit union recorded $116.9 million of OTTI charges during December 2009. This included a $87.1 million charge for monoline insurance exposure through Wisconsin-based Ambac. In addition, Members United recorded another $21 million in OTTI charges in April. The OTTI was partially offset by core earnings of $1.6 million rolled forward since Nov. 30, 2009. As a result, Members United has a retained deficit totaling $129.9 million, requiring it to deplete MCS in accordance with the National Credit Union Administration's rules. Capital remaining after depletion is $145 million, which includes $11.1 million of amortized shares representing capital that is placed on notice but has not met the three-year notice period of withdrawal. These shares are available to cover losses and replenish retained earnings and will be subject to depletion action on May 28. Total depletion as a percentage of beginning MCS is 96.9%, said the financial statement.
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