Members United Corporate FCU Reports More Losses

WARRENVILLE, Ill. – Members United Corporate FCU reported additional losses of $8 million this morning on its investments for July, erasing $3.4 million of operating net for the month and creating a $4.6 million loss for July. Year to date losses are $11.2 million.

The so-called other-than-temporary impairment on its investments reduced retained earnings for the $8.9 billion corporate to just $3.9 million at the end of July.

Losses on its investments have erased all of Members United’s $79.4 million of paid-in-capital and $460.1 million of membership capital shares over the past 12 months, leaving the troubled corporate with just $14.6 million of membership capital at July 31.

That leaves just $18.5 million of membership capital shares and retained earnings to absorb any future losses on the corporate’s investments.

For reprint and licensing requests for this article, click here.
Corporate credit unions
MORE FROM AMERICAN BANKER