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Mid-Atlantic Corporate releases 2009 report

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MIDDLETON, Pa. (5/17/10)--Mid-Atlantic Corporate FCU has accumulated $6.5million in retained earnings through 2009, according to its annual report for 2009 posted on the Middleton, Pa.-based corporate credit union's website. The year-end asset size grew by more than $1 billion to $3.8 billion from 2008. The corporate's gross earnings of $60.3 million was comprised of $43.8 million in investment and loan income and $16.5 million in operating income, said the report. Mid-Atlantic returned $28.6 million of its gross income back to its members in the form of dividends and interest. Operating expenses for the year totaled $25.2 million lower than 2008, said Joan M. Moran, treasurer, in the report. She noted the capital position of Mid-Atlantic Corporate remains strong, compared with its peers' capital position. "Although the retained earnings ratio at 0.18% is below the regulatory minimum, Mid-Atlantic's total capital ratio of 4.52% is above the regulatory minimum. Mid-Atlantic worked to diversify its correspondent relationships to strengthen its liquidity. At the end of 2009, its diversified cash holdings totaled more than $1 billion and access to lines of credit totaled $1.4 billion. The corporate diversified cash and investment holdings at U.S. Central FCU from over 90% in past years to 42% at the end of 2009. The corporate's holdings outside U.S. Central are almost evenly split between short-term investment positions and cash positions with highly rated and well-established correspondent banks, said the corporate's report. These are divided among four primary categories: U.S. Agency securities asset-backed securities, corporate notes and bank certificates of deposit. The corporate's adoption of the accounting standard recognizing other-than-temporary impairment (OTTI) charges, as required by regulators since April 2009, "did not have a material impact on the [corporate] credit union's financial position, results of operation or cash flows, the corporate said. The report is located on the corporate's website under "Corporate Financials."