LOMTO Federal Credit Union's second quarter call report was posted this week. It is the last of the four New York City credit unions that specialize in taxi medallion loans to report its financial performance.
During the second quarter of 2015, LOMTO saw an increase in loans 60-days or more past due to $9.2 million from $2.8 million. As of the end of the second quarter, the credit union reported that 3.68 percent of all loans were delinquent.
However, early delinquencies (loans 30 to 59 days past due) fell by $2.9 million during the quarter to almost $5.6 million. Compared to a year earlier, early delinquencies were slightly less than $900 thousand.
LOMTO reported that outstanding trouble debt restructurings (TDRs) of almost $25 million (all of these loan are in nonaccrual status). Compared to a year ago, outstanding TDRs stood at $0.
LOMTO has reported its provisioning for loan and lease losses increased during the second quarter. Provisions increased from $300 thousand as of March 2015 to $2.1 million at the end of the second quarter. As a result, LOMTO is reporting a year-to-date loss of almost $236 thousand compared to a profit of slightly less than $1.9 million for the same period a year ago.
As of June, the credit union has allowances for loan and lease losses (ALLL) of almost $6.6 million up from $4.7 million from the previous quarter. This indicates that the credit union has a coverage ratio (ALLL to Delinquent Loans) of 71 percent.
LOMTO FCU currently has equity capital of $44.5 million. Its net worth ratio is 16.73 percent.
This means the credit union has a buffer (capital plus ALLL) of over $51 million to absorb expected and unexpected losses.
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