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U.S. Central posts 3Q results
LENEXA, Kan. (11/2/09)--U.S. Central FCU Friday posted its financial report for the third quarter ending Sept. 30 on its website, recording a net loss of $308.5 million for the quarter. The loss is the result of other-than-temporary impairment (OTTI) charges, which totaled $320.1 million for the quarter. That compares with a net income of $16.3 million for the same period in 2008. Year-to-date through September, net losses totaled $1.3 billion, compared with net income of $45.9 million for the same period in 2008. OTTI charges totaled $1.3 billion through the first nine months of 2009. Excluding OTTI charges, U.S. Central recorded net gains on financial instruments of $0.5 million for third quarter, compared with losses of $3.9 million for the same period in 2008. Assets as of Sept. 30 totaled $28 billion--up $0.9 billion or 3.2%, from $27.1 billion as of Dec. 31, 2008. The increase reflects primarily an increase of $5.9 billion in cash, offset by a $2.3 billion decline in the fair value of U.S. Central's investment securities and a $2.5 billion decrease in loans. Net interest income during the quarter totaled $17.1 million, compared with $42.5 million for third-quarter 2008--a decrease of $25.4 million or 59.7%. Fee income totaled $5.2 million, compared with $4.6 million for third-quarter 2008, an increase of $0.6 million or 13%. Operating expenses totaled $11.3 million, a decrease of $4.4 million, or 27.9% over the same quarter last year. Total funding, excluding capital accounts, was $36.2 billion as of Sept. 30, compared with $36.9 billion as of Dec. 31, a decrease of 1.8%. Borrowed funds dropped by $6.2 billion, and members' share and certificate accounts increased by $5.5 billion. Member accounts remain U.S. Central's primary source of funding, averaging $28.9 billion for third quarter of 2009 and equaling $25.2 billion at Sept. 30. The corporate noted that as delinquencies for consumer loans, especially mortgages continued to mount, "the market for non-agency residential mortgage-backed securities remained illiquid, although the prospect of the Public-Private Investment Program brought some renewed interest to this sector. This further deterioration caused loss projections for some of U.S. Central's non-agency residential mortgage-backed securities." For the full report, use the link.
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