Sperry Associates is in credit doldrums after it invested in real estate deals and land with a unreliable credit union that went down under. This credit union was then taken over by Space Coast Credit Union.

Now Sperry Associates is seeking some returns on the $4.5 million investment it made by trying to win the lawsuit that was filed against Space Coast Credit Union, based in Melbourne. The lawsuit was made late in August 2010. All hopes of financial recovery are pinned on this suit, and the credit union management of Sperry Associates is hoping for the best.

Meanwhile, the capital ratio that is an indicator of financial health, dipped again at the Federal Credit Union of Sperry Associates, based in Garden City Park. The third quarter saw a dip, with the ratio dropping to 4.6 percent. This is an al time low in recent times. The call report for Sperry Associates was equally dire. This is the second straight incident of “significant undercapitalization”

Interim CEO Jim Duffett of Sperry Associates said that for 2011, they were trying to met the desired growth rate of 5.6 percent capital, despite the setbacks. Significant improvements are also expected to be underway, said Duffett.

The regulator body National Credit Union Administration, has subjected Sperry Associates to the rules stipulated by a letter of agreement to enhance capital ratios and reduce deficits. Now all eyes are on the Space Coast Credit Union lawsuit and if it pans out favourably for Sperry Associates.

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