Our insured shares at year end was 29,313,470 times 1% = 293134.70 times 51% = a write down of 149,498.85. That will be written down in March, 2009, and will result in a decrease in our net worth from 7.68% to 7.00%
This is the result without any charge offs, which are at an all time high and the resultant increase in loan loss reserve. The ALCO response is an option the board may take in order for us to survive. But the write down would put us on the verge of insolvency.
The loss of credit unions that would result from this action makes one think why we need all these corporate CUs in the first place.
We as credit unions are suppose to help people not the share insurance fund. It seems that NCUA has lost the reason why we credit unions exist.
Joseph M. Clark, President/CEO
Winthrop Federal Credit Union
15 Woodside Avenue
Winthrop, MA 02152
T 617-846-1226 x213