LENEXA, Kan. – U.S. Central FCU reported yesterday its deposit base shrunk by almost $2.5 billion, or 12%, in January, when the central bank for credit unions reported its huge $1.1 billion loss for 2008 would require a cash infusion from NCUA.
Member share and certificate accounts amounted to $17.3 billion at the end of January, down from $19.7 billion at the end of December, and down from almost $37 billion at the end of last January.
For the month of January, member balances, consisting of share and certificate accounts as well as Fed Funds purchased, averaged $23.1 billion, compared to $35.3 billion in January 2008.
Even after a $1.2 billion other-than-temporary impairment charge on its troubled investments, U.S. Central said it sill holds $9.3 billion of unrealized losses on its investments–which represents the difference between the book value of the holdings and their current fair market value.
The so-called OTTI charge created a $1.1 billion loss for 2008, wiping out all of the corporates $707 million of retained earnings and probably most of its $750 million of paid-in-capital.
