Speaking out Friday on the latest NCUA moves on U.S.Central/WesCorp., Mid-Atlantic Corporate Federal Credit Union noted again that its own capital with U.S. Central "is now impaired" warned that the unintended consequence of the conservatorships "could jeopardize consumer confidence in all credit unions."
The $4 billion Middletown, Pa. corporate once again reassured its East Coast members that it has "the wherewithal to weather the impact of what has been happening" noting that it actually has seen what it calls a "higher than normal" rise in first quarter deposits, a jump in assets from the $2.8 billion at the end of 2008.
At the same time, Jay Murray, president/CEO, acknowledged that its members "have had another level of financial impact thrust upon them because Mid-Atlantic now has an impairment of our capital with US Central, which is likely to roll down to an impairment of our members' capital."
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It is critical, he said, "that alternative solutions are found to ease the financial burden on our members from the insurance fund assessment and impairments resulting from the US Central conservatorship."
He said that Mid-Atlantic members by looking at the corporate balance sheets, seeing the stats and understanding "their knowledge of us as a management team" should find reassurance in the corporate's viability.
As for the deposit growth, Murray said first quarter increases have been the pattern for most corporates and the "slightly higher" increases reflect support for Mid-Atlantic management as well as the "guarantee from NCUA and their statements encouraging credit unions to make deposits in the corporate network and that seems to be having an effect."
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