Members of corporate credit unions didn't express much surprise when they learned how badly U.S. Central's second-quarter losses had damaged their own capital coffers.
The $1.4 billion First Corporate Credit Union told members about their 63% PIC impairment Monday. President/CEO Pete Pritts reported late yesterday that none of his 56 members contacted him to discuss it.
He said FirstCorp has communicated U.S. Central loss estimates and their effect on FirstCorp four or five times already, and his members "know the portfolio is impaired and know we all have to work through it."
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Additionally, because FirstCorp members are located in the hard-hit sand states, Pritts said they know firsthand how job losses and home values are affecting mortgage-backed securities.
Georgia Central Credit Union President/CEO Greg Moore told his members July 31 that U.S. Central's losses will consume $42.5 million in RUDE, $13.5 million in paid-in capital and $1.9 million worth of member capital shares. Moore said his members have been very supportive despite the news.
Like Pritts, Moore said he has communicated with members about corporate stabilization and U.S. Central exposure several times, and said one-on-one interaction, whether through telephone contact or in person, has been the most effective.
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