COLUMBUS, Ohio – Corporate One FCU yesterday reported an $8.2 million loss for the first six months of the year, which it attributed to $17.1 million of charges on its mortgage-backed securities.
The first half loss compares to a $12.8 net for the same period last year.
Corporate One said the losses of $17.1 million on 30 MBSs represent the difference between the discounted cashflows of the impaired securities and their current book value. But total credit losses in these securities are estimated to be closer to $25 million.
At mid-year, Corporate One had unrealized losses of $332.1 million on its $4.1 billion of securities, up from losses of $247.7 million a year ago. About two third of the unrealized losses in the first half, or $222 million, were attributed to MBSs.
Corporate One, like most of the other corporates, has yet to report its annual financials for 2008 because it is waiting to see how much of its capital in U.S. Central FCU it will have to charge off.
