WALLINGFORD, Conn. – Constitution Corporate FCU reported it still had negative net worth at the end of the first quarter, even as its earnings are trending positive.
The $1.2 billion corporate reported first quarter net income of $708,000 but ended the quarter with a $24.5 million capital deficit guaranteed by NCUA under a regulatory Prior Undivided Earnings Deficit agreement, one of three corporates with negative capital (along with U.S. Central FCU and WesCorp FCU).
Constitution, like several troubled corporates, continues to report an operating net but that income is exceeded by growing losses on investments – $1.2 million in the first quarter by the Connecticut corporate.
In audited financials for 2009 issued last week Constitution reported a $100.1 million loss for last year that erased all of its member capital, and for the second year in a row its auditor issued a “going concern” letter expressing doubt about the corporate’s ability to continue as a going concern.
