Income Offsets New OTTIs at Constitution Corp
Despite a new $1 million OTTI, the $1.2 billion Constitution Corporate FCU rounded out the first quarter with a net profit of $708,000.
As of March 31, the Wallingford, Conn.-based corporate had gained nearly $3 million in interest income, a $913,000 increase over same period last year. Investment income was only $5 million compared to $8.4 million during the first quarter 2009; however, dividends paid to members accounts decreased from $9.6 million in 2009 to only $5.14 million as of March 31, 2010.
Constitution Corp also credited the net profit to a $439,000 reduction in operating expenses from last year; more than half of the cuts came from salaries and benefits.
The quarter's profits were applied toward the corporate's NCUSIF-guaranteed retained earnings deficit, now worth $24.5 million.