WesCorp Gets Sacked With $49M OTTI
Western Corporate FCU reported nearly $50 million in new OTTIs in its March financial reports, posted on the San Dimas, Calif.-based corporate's website. (www.wescorp.org) Losses suffered on Option ARM backed, private label, residential mortgage backed securities were responsible for $34.3 million worth of the $49.4 million OTTI.
The permanent impairments resulted in a $36.3 million net loss for the month of March. However, WesCorp is only down $10.4 million for the quarter; the corporate earned $45.7 million in net interest income during the first quarter and $7 million in fees to offset the OTTIs and nearly $14 million in operating expenses during that period.
Actual realized losses totaling $76.5 million were also incurred in March, but management reported the losses have no impact on WesCorp's financial statements because they were already recognized as credit losses in prior OTTIs.
Unrealized losses numbered $2.4 billion as of March 31, with half of that figure representing temporary losses on commercial mortgage backed securities. However, CMBS have accounted for only $5 million of the $7.66 billion in permanent OTTI charges recorded so far by WesCorp.