Although it hasn't yet accounted for U.S. Central's third quarter losses and its own third quarter investment portfolio evaluation, Southwest Corporate Federal Credit Union's Sept. 30 financial statements show a slightly stronger capital position over July 31.
Southwest Corp said it will deplete $158.8 million in MCA in October to cover its Aug. 31 retained earnings deficit per NCUA guidance. But, that deficit decreased to $155.6 million as of Sept. 30; and, MCA increased to $399 million from $393 million, a $9 million improvement overall.
Provided October also produces some gains, the Dallas-area corporate will have at least $241 million in MCA to cover against $62.3 million total remaining in U.S. Central-invested capital and any OTTIs it may record against its own investment portfolio. Last quarter's Clayton review turned up $113 million in OTTIs.
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Southwest Corp still has considerable ground to make up before it can drop the "deficit" term when reporting total member capital: despite the pending elimination of its retained deficit, the $8 billion corporate's accumulated other comprehensive loss totaled nearly $1.2 billion as of Sept. 30.
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