Southeast Corporate Federal Credit Union told members earlier this week it will not seek additional capital in the form of a paid-in capital issuance as other corporates have done or are planning to do.

A long economic recovery and market uncertainty make it impossible to guarantee against further losses from U.S. Central or its own investment portfolio, officials wrote in a Monday post on Southeast Corp's "Member Owner Update" blog. Additionally, the NCUA is only in preliminary stages of revising corporate regulations.

"We believe it is not in a member's best interest to place additional "at risk" deposits (PIC or MCS), at this time, with any corporate. At Southeast Corporate we are instead focused on increasing retained earnings by lowering expenses," the corporate said.

Southeast Corporate closed its books on the first half of 2009 with all member paid-in capital and capital share accounts intact, according to June 2009 financial statements posted online today (www.secorp.org).

The Tallahassee, Fla.-based corporate wrote off nearly $84 million in U.S. Central capital in April, depleting 100% of PIC and 23% of MCS. Southeast also recorded $17.7 million worth of impairments on its own investments during the second quarter.

Despite the losses, $18 million is available in its reserves as of June 30, and $20 million in PIC and $90 million in MCS remains untouched.