LENEXA, Kan. – U.S. Central FCU this afternoon reported increasing losses on its investments in the first quarter, resulting in a $45.4 million loss for the period.
The growing losses on U.S. Central’s investment portfolio caused NCUA to deplete another $320 million of its $1 billion capital note infused into U.S. Central last year, meaning $650 million of the note is now gone. That’s on top of $3.6 billion of retained earnings and corporate credit union capital that have been erased by massive losses over the last two years at the one-time $52 billion corporate.
First quarter losses included $58 million of so-called other-than-temporary impairment on its investments caused by further deterioration of its residential mortgage-backed securities.
The central bank for credit unions had a $750 million loss in the fourth quarter of 2009 and a $1.8 billion loss for the full year.
U.S. Central has been run under NCUA conservatorship since March 2009.
