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Strong net income for U.S. Central; losing money on former building

LENEXA, Kansas -U.S. Central reported net income of $16.1 million as of Sept. 30, 2002, up from $14 million for the same period last year. Looking year-to-date, net income is $50.2 million, up $9.5 million from last year. Average interest-earning assets as of Sept. 30 were $31.8 billion, up 10.3%...

By Staff Writer | Updated on November 19, 2002

LENEXA, Kansas -U.S. Central reported net income of $16.1 million as of Sept. 30, 2002, up from $14 million for the same period last year. Looking year-to-date, net income is $50.2 million, up $9.5 million from last year. Average interest-earning assets as of Sept. 30 were $31.8 billion, up 10.3% over 2001. Also, recorded net gains on financial instruments were $8.6 million, compared with net losses of $2.9 million last year. U.S. Central attributed these favorable balance sheet factors to “attractive market conditions and proper portfolio positioning.” To help deal with dwindling investment yield for members, U.S. Central made changes to its variable-rate products by creating an account indexed to a spread above the fed funds open rate. U.S. Central, which recently moved into a 128,000 square-foot new headquarters building here, expects to have to sublease its former office space in Overland Park, Kansas at “significantly reduced rates”, according to its third quarter financials. The corporates’ corporate said office occupancy and administration increased by $2.6 million due to a loss contingency of $2.0 million recorded in April 2002 related to the move and sublease issue. It also reported salaries and benefits increasing by $1.3 million because of annual merit ranges. Offsetting some of the expenses was a $0.7 million reduction in professional and outside services fees related to external legal and project consultants.

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