According to the Indianapolis Business Journal, Eli Lilly FCU had to restate its 2012 financials after it recorded a $26 million loan loss provision at the end of 2012, when it reserved “70 percent of total loan balances for a specific Private Student Loan program.”
As a result of this loan loss provisioning, Eli Lilly FCU went from a previously reported 2012 profit of $8.9 million for 2012 to a $13.9 million net loss in 2012. The net worth for the credit union fell from 9.82 percent in 2011 to 8.24 percent in 2012.
Mike Renninger, principal of Carmel financial consultancy Renninger & Associates, commenting on the losses from the ITT student loan program said: “Somebody ought to have massive egg on their face for doing this.”
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