U.S. Central Federal Credit Union released its third quarter 2009 financial statements today, announcing a $308.5 million net loss that depletes remaining member capital shares to only $140 million as of Sept. 30, now an 88.7% impairment.
The additional losses will spur another round of capital adjustments for retail corporates, and in turn, some natural person credit unions.
Last quarter's $320 million in OTTI charges were caused by further deterioration in the $28 billion institution's private residential mortgage-backed securities. On the bright side, U.S. Central's balance sheet gained nearly $1.5 billion in "accumulated other comprehensive income," reducing its unrealized losses to $9.6 billion, down from more than $11 billion as of June 30.
As of Sept. 30, U.S. Central reports $11 billion in NCUSIF and SIP/HARP borrowings. However, liabilities will change in future financial reports, when $4 billion in medium-term notes are recorded in October, and the NCUA lets SIP notes "roll off the books" in early 2010. NCUA Board Member Gigi Hyland said earlier this month the agency has "no plans to roll (CU SIP) over."
