DULUTH, Ga. – Georgia Central CU is the latest corporate credit union to report that its exposure to losses at U.S. Central FCU pushed it into the red again in 2009.
The $2.5 billion corporate had a successful year, growing from $1.7 billion at year-end 2008 and reporting a $1.2 million operating net, but the write-off of $13.5 million of its U.S. Central capital created an $11.8 million loss for 2009.
Similarly, a $3.7 million net for 2008 was turned into a $55.3 million loss for 2008 because of the write-off of $58.5 million of its U.S. Central capital.
Ironically, Georgia Central’s President Greg Moore was on the board of U.S. Central, until NCUA removed all directors and senior managers after the agency took the one-time $52 billion corporate under conservatorship last March 20.
The U.S. Central losses required Georgia Central to deplete its own members' equity by $13.1 million in 2009, which probably will be added to if, and when, the corporate depletes, or writes off the remaining $6.2 million of U.S. Central capital it still has on its books.
Otherwise, the corporate showed strong financials, including a meager $389,000 of unrealized losses on its investments, down from just $3.6 million of unrealized losses at year-end 2008.
