Owners of the $8.35 billion Members United Corporate Federal Credit Union can put their 2008 financial reports to bed now that the Warrenton, Ill.-based cooperative released its 2008 audited financial statements Dec. 31.
Although auditors McGladrey & Pullen required a conservative 100% write-off of U.S. Central capital as of Dec. 31, 2008, the report didn't turn up any additional losses that haven't already been recorded in 2009.
There weren't any surprises in Members United's November 2009 month-end financial reports either, posted Dec. 30. As expected, the corporate followed NCUA guidance, depleting member capital to erase its Oct. 31 $147 million accumulated deficit.
The transaction leaves Members United with $138 million in member capital shares and another $1.6 million retained earnings, for a 1.68% capital ratio. Capital could take additional hits if the corporate's year-end investment review, expected mid-February, produces new losses.
CEO Joseph Herbst included a letter to members with financial reports. In it, he apologized for losses and announced a "fundamental shift" in direction, including "refocusing on core markets" and an emphasis on capital accumulation over growth.
Though he said the corporate "will need an infusion of fresh capital," Members United serves nearly one-quarter of the nation's credit unions, and Herbst said there is still exceptional value in the franchise.