TALLAHASSEE, Fla. – Southeast Corporate FCU reported its audited financials for 2008 this week, based on last month’s report from U.S. Central FCU, showing a $111.7 million loss for last year, most of it due to the charge-off of its U.S. Central capital.
Losses of $108.5 million of U.S. Central capital for 2008 and of $14.5 million for 2009, combined with $22.3 million of losses on investments forced Southeast Corporate to deplete all $20.2 million of its members' paid-in-capital and $111,000 of its member capital shares, Southeast Corporate’s Chairman Tim McMurry told its members in a letter Wednesday.
"We continue to expect that additional losses in U.S. Central’s investment portfolio will further deplete Southeast’s MCS in the coming months," McMurry told his members. "In the worst case scenario, if our $6.7 million in remaining capital becomes fully impaired, MCS at Southeast Corporate will be impaired by an additional 7%. That does not include any additional (losses) that Southeast might incur on its own portfolio."
The $3.3 billion corporate is one of five corporates to report the full depletion of their members’ PIC, along with U.S. Central, WesCorp FCU, Members United Corporate FCU and, more recently, Constitution Corporate FCU.
McMurry, CEO of PowerNet CU, told members without the losses passed down from U.S. Central, "Southeast could have withstood this financial crisis with no impact to member capital."
