You'd Better Contact Your Corporate. More Losses at US Central.

On October 30th, U.S. Central (USC) released their financial statements for the third quarter. Their cumulative losses over the last three years is now up to $2.6 billion. If your Corporate Credit Union has considerable investments (capital) with USC, then it's a good bet that your Corporate's capital account with USC is impaired more than expected. So who pays the tab? Natural Persons credit unions, of course.

Examples from Cindrich Mahalak & Co, CPAs . . . Corporate CenCorp in Michigan has an unexpected 24% impairment, or $240,000 for each million in you capital account. On the other hand, Corporate One in Ohio has no impairment expected. According to CM&Co, "don't expect any recoveries here like you saw with the NCUSF deposit, as this cannot be written up under current accounting rules."

It is suggested that you contact your Corporate to find out where they stand. I would imagine that your Board of Directors does not like surprises, unless they are good ones.

The economy seems to be improving somewhat - this is the good news. However, with new credit union legislation, potential NSF/Courtesy Pay limitations, record high unemployment, and NCUSIF related expenses, credit unions will be navagating some pretty rocky roads ahead.