TALLAHASSEE, Fla. – Exposure to U.S. Central FCU combined with charge-offs of mortgage-backed securities have forced more corporate credit unions to report big losses in recent days.
Southeast Corporate FCU reported yesterday that charges related to its shares in U.S. Central FCU and its mortgage-backed securities created a $79 million loss for the month of April.
And SunCorp FCU said it restated its 2008 financials to show a $134.9 million loss for the year.
The loss at Southeast is primarily attributable to the write down of $60.5 million of the corporate’s capital at US Central as of April 30, 2009, and doesn’t include a $23.4 million charge for 2008 recorded retroactively, according to the $3.2 billion corporate.
The remaining portion is related to the recognition of $17.7 million of other than temporary impairment related to Southeast’s private-label mortgage-backed securities holdings.
A Southeast representative said yesterday despite the losses they expect to continue to provide services to their 425 credit union members uninterrupted.
SunCorp said its losses were also caused by charges related to its U.S. Central holdings and to mortgage securities.
Over the past week, Southwest Corporate reported a restatement of its 2008 financials to show a $624 million loss; Corporate One FCU restated to show an $18.2 million loss for 2008; Constitution Corporate FCU reported a loss of $14.5 million for 2008, and a $36.9 million loss for the first quarter of 2009; and WesCorp FCU reported a huge $7.6 billion loss for 2008.
