Members United Corporate Federal Credit Union found one way to recover OTTIs from a previously impaired bond: sell it.

The $7.4 billion corporate recorded a $7.5 million profit during the month of August on a Syncora Guaranty-insured bond that had previously been written down to $0 after SGI suspended claims payments. When the monoline insurer announced it would resume claims payments in July, the bond's value surged to $7.5 million.

"SGI's financial condition remains weak and uncertain, therefore, a decision was made to accept the offer and lock in $7.5 million of value," the corporate said in its notes that accompanied the financial reports, posted online yesterday.

Total net income for August was $11.2 million. August's gains resulted in positive year-to-date net income of $63,000.

Retained earnings increased to $15.1 million as of Aug. 31, up from $3.8 million as of July 31. Net worth increased to 0.36%, up 14 basis points from the previous month.

Assets dropped significantly in August due to a nearly 50% reduction in cash and cash equivalents.