U.S. Central Federal Credit Union and the NCUA have clarified the bottom-line affect the 2008 audit will have on member capital.

Turns out, the Dec. 31 numbers are just half of the story. What the $27 billion wholesale corporate didn't release Friday were the Jan. 1 numbers, in which non-credit losses were reversed. U.S. Central Chief Financial Officer Kathy Brick said the only bottom-line difference is a $9.2 million impairment that will be recognized in the 3^rd quarter, along with any additional impairments Clayton Holdings might find when it reviews U.S. Central's portfolio this month.

Brick said her shop will post updated 2009 financial statements on its Web site later today. (www.uscentral.org)

With the exception of the $9.2 million, all newly recorded losses as of 12/31/08 were already recognized on U.S. Central's books in 2009, said Scott Hunt, from the NCUA's Office of Corporate Credit Unions.

Hunt called the accounting entries "just a timing difference," saying nine months of perspective provided auditors Deloitte & Touche with "the benefit of making a Monday morning quarterback call."

Officials confirmed that U.S. Central still holds $452 million in membership capital shares on its books, still 63% impaired as previously announced.

Instant Insights /

Officials Clarify U.S. Central MCS Still Only 63% Impaired Post-Audit

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