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CU System
WesCorp reports 7.6 billion loss for 2008
SAN DIMAS, Calif. (6/5/09)--Western Corporate FCU (WesCorp) reported its losses for 2008 at nearly $7.6 billion, according to its audited Consolidated Financial Statements for 2008 and 2007. Losses on investments and securities totaled $7.736 billion but fee and operating income reduced the losses to $7.6 billion. Adjustments to reconcile net income loss to net cash indicated that $7.6 million in losses came from other than temporary impairment loss on securities. Impairment on investments in U.S. Central FCU Paid-In-Capital (PIC) totaled $114.7 million. According to the statements, Member Capital Accounts (MCA) and PIC "have been depleted to cover losses that exceeded retained earnings as of Dec. 31, 2008, and March 31, 2009," as mandated by National Credit Union Administration (NCUA) regulations. WesCorp has derecognized MCA amounting to $929.9 million, effective March 31, through retained earnings. That number is unaudited. The corporate also derecognized PIC accounts amounting to $213 million as of March 31 through retained earnings, and its corporate reserve and undivided earnings accounts were depleted and derecognized. Those figures also are unaudited. As of Dec. 31, WesCorp's capital ratio was -20.40%, well below the 5% required. Its retained earnings ratio was -24.41%, below the 2% required, and its core earning ratio was -23.66%, less than the 3% required. WesCorp and U.S. Central were placed into conservatorship on March 30 by NCUA. The financial statements are posted on WesCorp's website. For more detail, use the link.
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