COLUMBUS, Ohio-Corporate One is reporting a loss at Nov. 30 of $40.8 million, compared to net income of $19.7 million for the same period in 2008.
Corporate One cited a decline in net interest income as the result of more assets being kept in cash and cash equivalents, a decline in other spreads, and other-than-temporary impairment charges taken in May and November along with a write-off of its last remaining capital shares in U.S. Central for the losses.
In a statement released by Corporate One as part of its semi-annual review of its securities portfolio, the corporate also showed positive reserves and undivided earnings (RUDE) of $25.6 million. The result, Corporate One reported, is that all member Paid-In Capital (PIC) and Member Capital Shares (MCS) remain 100% intact.
The $5-billion Corporate One said its core earnings (exclusive of other-than-temporary impairment [OTTI] write-downs on its securities and U.S. Central capital accounts) were $13.4 million through Nov. 30. Assets under management are also up 7% YTD.
The losses seen by Corporate One during November include OTTI on its securities portfolio of $17.7 million, a 100% of all impairment on securities insured by Financial
Guarantee Insurance Corp. of $10.0 million, and $4.6-million for its remaining MCS in U.S. Central., for a total of $32.3 million.
In a statement to member credit unions, CEO Lee Butke said, "While these losses are disappointing, they were not unexpected. Corporate One fully anticipated taking OTTI charges during this bi-annual review. We were able to anticipate these write-downs..." Butke added, "We do not anticipate having to impair our members' capital in the future."
Butke said Corporate One closed November with cash and cash equivalents of $874 million, and that average shares for the month were $3.64 billion, compared to $3.32 billion for the same month a year ago.
