WARRENVILLE, Ill. – Nearly a full year after we said goodbye to 2008, Members United Corporate FCU finally was able to close the books on it as well, posting a $1.2 billion loss for the year in a financial statement released on New Year’s Eve 2009-10.
The $9 billion corporate reversed half of that 2008 loss just two days into 2009, when new accounting rules were adopted.
After additional losses for 2009, Members United had about $140 million in capital as of Nov. 30. That capital "consists almost entirely of remaining member capital share balances," according to Todd Adams, chief financial officer for Members United, which has depleted its own members capital in recent months.
The $1.2 billion in 2008 losses included a write-down of $308 million of Members United’s capital in U.S. Central FCU and about $900 million of losses on investments, so-called other-than-temporary impairments, or OTTI.
Members United said it was not able to issue its final audited statement for 2008 until the final hours of 2009 because of delays for reporting at U.S. Central. "As we had been disclosing throughout the year, Members United was waiting until U.S. Central issued their audited financial statements before finalizing our audit," Adams told Credit Union Journal yesterday. "U.S. Central issued their report on Sept. 11, 2009. Our audit firm, McGladrey & Pullen, then proceeded to conduct their concurring partner review process which ultimately concluded with issuance of an audit opinion on Dec. 30, 2009."
