According to legacy asset loss estimates provided to Credit Union Times by the NCUA, investments made by Western Corporate FCU are generating far more losses than those that were made at other failed corporates.
As of year-end 2012, WesCorp’s estimated losses were $5.7 billion, representing 84.4% of the nearly $6.8 billion in total estimated legacy asset losses. However, according to a chart provided by the NCUA, the corporate formerly located in San Dimas, Calif., contributed just 39% of total legacy assets.
That’s in stark contrast to the four other corporates that had their investments seized by the NCUA and used as underlying assets for more than $17 billion worth of NCUA guaranteed notes issued in 2011.
U.S. Central FCU’s assets show the most dramatic loss discrepancy. The former Kansas City-based corporate’s $625 million worth of estimated losses as of year-end 2012 make up just 9.2% of total estimates losses. U.S. Central assets totaled 43% of all legacy assets.
Both Members United FCU and Southwest Corporate FCU legacy assets also contribute fewer losses compared to the size of their portfolios. As of 2012 year-end, Members United legacy assets were estimated to produce $214 million in losses, which represents 3.15% of total losses. The corporate’s legacy assets represent 9% of the total. Southwest Corporate posted $149 million in estimated losses as of Dec. 31, 2012, for 2.2% of total losses. The Plano, Texas-based former corporate contributed 8% of total legacy assets.continue reading »