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Members United Corporate reserves 281.5M for more losses
WARRENVILLE, Ill. (10/27/09)--The September financial statements for Members United Corporate FCU, based in Warrenville, Ill., are much as expected, with the corporate indicated it is recording $281.5 million in capital shares to be available for weathering more potential losses. Members United Corporate released its financial statements for Sept. 30 on Friday. The $7.5 billion asset corporate eliminated its retained deficit that existed in the previous financial statement at the end of August. In accordance with guidance from the National Credit Union Administration (NCUA), the corporate depleted 100% of paid-in-capital and recorded a 40.1% depletion in membership shares. The corporate noted that "both U.S. Central and Members United have not completed their respective investment OTTI (other than temporary impairment) reviews." The report added that results from reviews in process are not incorporated into the financial performance report. "Both reviews are expected to generate additional investment losses which will be recorded and reported in the October financial statements," the report said. "Assuming that these reviews result in a new retained deficit, it is likely that additional depletion will be charged against the remaining membership capital share balances in the month of November 2009," it added. "While the results of the investment OTTI review that is in process are not final and ready for release, management does not anticipate that losses from this review will exceed the remaining $281.5 million of membership capital shares," the report said. Members United, like other corporates, is following NCUA guidance as outlined in Rules and Regulations 704.2 and Letters ot Credit Unions No. 09-CU-10 regarding depletion of capital from the impact of U.S. Central FCU and corporates' own investment OTTI. To access the financial statement, use the resource link.
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