COLUMBUS, Ohio – Corporate One FCU said yesterday despite losses accrued on its U.S. Central FCU capital and mortgage-backed investments it will not have to deplete any of its paid-in capital or member capital shares.
"We’re very concerned about our (membership capital shares) not being written down and our focus is on that," said Melissa Ashley, chief financial officer for the $4 billion corporate.
The corporate is currently sitting on $65 million in reserves to absorb further portfolio losses before it must tap into member capital, but Ashley stated firmly that Corporate One’s projections show there will be no need for write-offs that impact the membership. "One-hundred-percent of paid-in capital and MCS will be intact at the end of 2009,"she told The Credit Union Journal yesterday.
Corporate One reported a $55.7 million impairment from its capital in U.S. Central and has another $15 million in U.S. Central exposure that remains at risk.
