The $8.15 billion Members United Corporate FCU and $3 billion Southeast Corporate FCU are both covering new OTTIs with existing retained earnings, the credit unions announced in separate releases July 26.
Southeast Corporate recorded a $795,662 OTTI for the month of June, resulting in a net loss of $621,868 for the month. However, the Tallahassee, Fla.-based corporate had racked up nearly $1.4 million in retained earnings as of May 31 and was able to cover the losses and still maintain $767,164 in earnings as of June 30. Member capital worth nearly $60 million was not affected.
Members United's June portfolio update showed a $1 million June profit that increased retained earnings to $9.6 million. Those figures did not include results of the Warrenville, Ill.-based credit union's OTTI review, which is currently underway. However, Members United stated "preliminary results indicate" the nearly $10 million in earnings will be sufficient to absorb OTTI charges expected in July's financial reports.
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