Citing "a divergence among loss projections," the $9 billion Southwest Corporate Federal Credit Union did not record any new third quarter OTTIs, according to its October financial reports.
The news comes after the $8.5 billion Members United Corporate FCU recorded a $77 million OTTI per its third quarter Clayton report, and the $28 billion U.S. Central FCU recorded a $320 million third quarter OTTI.
Southwest Corp recorded $113.5 million in OTTIs as of June 30 because its private label mortgage backed securities portfolio "experienced a significant degree of deterioration," said Chief Financial Officer Melissa Wardell.
Recommended For You
However, she said third quarter reviews produced mixed results.
"Our assessment was to continue to determine the need for more OTTI through year-end in order to better gauge if loss projections were stabilizing, declining or if subsequent increases would necessitate additional impairment charges," she said.
The NCUA doesn't appear to be concerned, according to spokesman John McKechnie. He said it's his understanding that "valuations and results reported by Southwest were arrived at according to GAAP, with concurrence of their CPA."
Southwest did deplete
nearly 40% of its member capital accounts to eliminate its Aug. 31 $159 million retained deficit, per NCUA guidance. As of Oct. 31, the corporate reported a $129 million year-to-date net loss.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
