Central 1 Credit Union

Central 1 Credit Union

June 01, 2009 16:30 ET

Central 1 Credit Union Amends 2008 Financial Statements and Issues First-Quarter 2009 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2009) - Central 1 Credit Union (Central) announced today that it has filed restated audited financial statements for the year ended December 31, 2008, with securities regulatory authorities.

Subsequent to filing its original statements, Central identified an input error in one of its derivative valuation models. The impact of the error was to overstate changes in fair value of financial instruments by $3.8 million and to overstate Central's 2008 net income by $3.2 million.

The restatement reduces net income for 2008 from the previously reported $29.8 million to $26.6 million, which represents a nine per cent increase over the $24.4 million earned in 2007.

The amount transferred to retained earnings for 2008 is restated as $20.9 million, compared with $24.1 million reported earlier. With the restatement, retained earnings at year-end 2008 were $188.1 million.

Central's Management's Discussion and Analysis for 2008 and its 2008 Annual Report have been revised to reflect the restatement and the Certificates of its Chief Executive Officer and Chief Financial Officer have been refiled. Copies of these documents have been posted to www.sedar.com.

First-Quarter 2009 Results

Effective June 30, 2008, Credit Union Central of British Columbia changed its name to Central 1 Credit Union (Central). On July 1, 2008, Central purchased substantially all of the assets and assumed substantially all of the liabilities of Credit Union Central of Ontario Limited (CUCO). As of that date, Central manages the liquidity reserves of member credit unions in both British Columbia and Ontario. The results of CUCO's operations have been included in the Interim Consolidated Financial Statements since that date.

Central has issued its First Quarter 2009 Report, including Management's Discussion and Analysis, which is available at www.sedar.com.

Among the highlights:

- Net income for the quarter amounted to $11.7 million, compared to $5.0 million for the same period last year.

- Central posted return on equity of 10.67 per cent, compared with 7.05 per cent a year earlier.

- Assets increased by 65.7 per cent year-over-year, reaching $8.7 billion as at March 31, compared with $5.3 billion a year earlier, largely reflecting the combination with CUCO.

About Central 1 Credit Union

Central 1 Credit Union provides liquidity management, payments, Internet banking and trade association services to member credit unions in B.C. and Ontario, while serving corporate customers with banking and transaction services.

Contact Information

  • Central 1 Credit Union
    Ian Smith
    Manager, External Communications
    604-730-6348 or 1-800-661-6813, ext. 6348