COLUMBUS, Ohio – Corporate One FCU said Friday that charges related to the corporate credit union bailout erased $21.6 million of net income reported earlier for 2008 and created a $18.2 million loss instead.
The loss was created by a $39.6 million impairment charge on Corporate One’s capital investments with U.S. Central FCU, which taken under conservatorship by NCUA on March 20, and a $612,000 expenses for Corporate One’s share of the corporate bailout charges.
After the impairment charges on its U.S. Central holdings, Corporate One still has $34.3 million of membership capital shares remaining with U.S. Central, some of which may be impaired as well. But Corporate One won’t know until later on.
Corporate One also reported that reversed executive bonuses that were accrued during 2008 but subsequently not paid in 2009, which added to its bottom line. The amount of the reversal was approximately $456,000.
For the first four months of 2009 Corporate One reported a 33% decline in net income from the same period last year to $5.9 million. This decrease from the prior year is primarily due to decreased net interest income due to a decline in interest rates year over year. Unrealized loss on its $4 billion of investments rose to $363.6 million at April 30, compared to $261.1 million a year ago.
Over the last year the corporate’s capital declined by 2%, or $5.8 million, to $235.6 million, but at 5.93% it is still well above NCUA’s minimum of 5%.
