Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Southwest Corporate OTTI losses increase
PLANO, Texas (8/3/10)--Southwest Corporate FCU announced a net loss of nearly $20 million for the first six months of 2010, compared with a net income of more than $16.6 million for the same period last year. As a result, the corporate will be required to deplete members' capital accounts in July to eliminate the deficit. The $9 billion asset corporate said the net loss was primarily due to $31.6 million in other than temporary impairment (OTTI) charges recorded in April related to further deterioration of certain non-agency residential mortgage-backed securities since Dec. 31, 2009. Southwest Corporate recorded more than $1.6 million in OTTI charges in June, which was offset by other operating income of nearly $2.6 million. The corporate's net loss for the six months ended June 30 is partially offset by net operating income totaling more than $15 million. The July depletion of members' capital accounts increases the cumulative members' capital account depletion percentage to 77.62% from 72.68%. The corporate reported in its unaudited financial statements posted on its website members' capital accounts totaling $106 million minus the nearly $20 million retained deficit leaves $86.1 million in total regulatory capital. That amount is net of $4 million related to the portion of shares on notice that cannot be counted as regulatory capital as of June 30. The corporate's capital ratio is 1.03%. National Credit Union Administration rules and regulations require a minimum of 5%.
Other Resources

RSS





print
News Now LiveWire
.@CFPB proposes mtg rule changes 2 facilitate responsible lending by small creditors, esp. in rural/underserved areas.http://t.co/sn6PnlS0EB
23 minutes ago
#NewsNow Apple Pay interest booming at CUs, Western Union joins http://t.co/LsaoOYzAPx
2 hours ago
#creditunions, members share #databreach stories with media http://t.co/hGsnpkov8R
2 hours ago
.@CUCB #Creditunion #CherryBlossom Run registration transfer period is 2/1 - 2/28. Read more here: http://t.co/wup6XPWtcC 2of2
3 hours ago
.@CUCB CU Cherry Blossom Run organizers say accepted runners who can't race can transfer registratrion to runners who didn't get in. 1of2
3 hours ago