WARRENVILLE, Ill. (11/24/09)--Members United Corporate FCU recorded a net loss of $149.6 million for October, according to financial statements released Friday. The Warrenville, Ill.-based corporate recorded a charge of $74.6 million as it fully impaired 100% of its remaining investment in U.S. Central capital shares, and a charge of $77.1 million for additional other-than-temporary impairments (OTTI) on marketable securities. The charge excluded OTTI on Ambac-wrapped investments, which would have amounted to an additional $37.5 million. Members United stated that while Clayton's cash flow projections fully discount Ambac support after Dec. 31, 2010, the corporate elected to not take the additional OTTI at this time. “Members United is in the process of reviewing Clayton's position and also is reviewing regulatory reports that were released on Nov. 18. This review is anticipated to be completed by Dec. 31 in connection with the year end close process,” the corporate said. Members United’s retained earnings as of Sept. 30 are $2.80 million, and its base net income for October is $2.05 million. Membership capital share balance is $292 million, resulting in an estimated depletion percentage of 50.2%. The depletion will be processed on Nov. 30. The corporate also reported that as of Oct. 31:
* Total fair value of assets totaled $8.5 billion; * Cash and cash equivalents and overnight deposits at U.S. Central amounted to $3.2 billion; * Fair value of marketable securities was $3.7 billion; * Loans to members accounted for $0.8 billion; and * Term deposits represented $0.7 billion.
The corporate’s capital ratio is 1.56%, which is below the 5.0% regulatory requirement. The National Credit Union Administration issued an order April 21 allowing corporates to reference their Nov. 30, 2008, capital levels. Members United’s capital level as of Nov. 30, 2008, exceeded the 5.0% requirement at 7.25%.