Southwest Corporate FCU To Deplete More Member Capital
DALLAS – Southwest Corporate FCU reported Friday additional losses on its investments will eat up more member capital for July.
The $9 billion corporate reported a loss of almost $20 million for the first six months of the year, compared to net income of $16.6 million for the first half last year. This year’s losses were mostly the result of so-called other-than-temporary impairment on securities of $31.7 million in April and another $1.6 million in June.
Southwest said it will deplete members’ capital accounts in July to eliminate the retained deficit that exists as of June 30, increasing the cumulative members’ capital account depletion to approximately 77.6% from 72.7%.
The additional depletion will leave Southwest with $86.1 million in regulatory capital, a 1.03% capital ratio. That does not include $4.1 million related to shares on notice that cannot be counted as regulatory capital as of June 30.