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U.S. Central to release 08 financials next week
LENEXA, Kan. (1/29/09)--U.S. Central FCU announced Wednesday that it expects to report its 2008 financial results next week. The Lenexa, Kan.-based wholesale corporate credit union also said the results will include an unaudited net loss of roughly $1.1 billion due to charges for other-than-temporary impairments (OTTI) of $1.2 billion. Excluding the OTTI charge, U.S. Central said it would have recorded net income of about $119 million for the year ended Dec. 31, 2008. "U.S. Central's estimated 2008 loss is based upon mark-to-market adjustments to our portfolio of residential mortgage-backed securities, resulting from the adverse economic environment, the severe illiquidity of such assets in today's market and the current accounting treatment of such assets," said Francis Lee, CEO. "Despite the reported loss, these securities continue to perform as expected, providing U.S. Central with monthly cash flow in the form of regularly scheduled principal and interest payments," Lee added. "We continue to maintain a strong conservative portfolio, but like other financial institutions with substantial mortgage-backed portfolio holdings, we have not been immune to drastic and deteriorating financial conditions of last year, particularly during the fourth quarter," he said. Lee noted that "U.S. Central remains committed to its long history of providing essential services to its members and the credit union system. We will remain an important source of liquidity and support to the Corporate Credit Union Network."


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