LENEXA, Kan. – U.S. Central FCU reported this afternoon that growing losses on its portfolio of private-label mortgage-backed securities created a $39.4 million loss for its second quarter, and an $84.8 million loss for the first half of the year.
While the losses are far less than those for last year’s first half–$982.6 million–they reflect a growing realization of losses that were previously projected or unrealized. For example, second quarter results show actual principal losses on 65 impaired securities totaling $128.1 million, and principal losses on 71 securities totaling $396.8 million for the first half of the year, indicating there is no hope for recovery on these investments.
At mid-year U.S. Central was still sitting on $5.4 billion of unrealized losses on its investments.
U.S. Central reported assets of $30.2 billion at mid-year, down from $35.1 billion at year-end 2009, and a high of $52 billion three years ago.
U.S. Central was taken under conservatorship by NCUA in March 2009 and has been run by the federal regulator since then.
