Tuesday, October 27, 2015

Taxi Medallion Lender Melrose CU Reports Q3 Loss of $21.57 Million

Melrose Credit Union (Briarwood, NY) posted a loss of $21.57 million for the third quarter as provisions for loan losses increased $28.55 million to $43.5 million during the third quarter.

Delinquent loans continued to grow during the third quarter. According to Melrose's financial performance report, loans 60 days or more delinquent jumped by 127.7 percent during the quarter to almost $125.8 million. As of September 30, delinquent loan rate was 6.28 percent, up from 2.76 percent the prior quarter.

Early delinquencies (30 to 59 days delinquent) at Melrose dropped during the quarter from nearly $149.1 million to $96.1 million.

Troubled debt restructurings (TDRs) increased by 38.7 percent during the third quarter to approximately $219.5 million. As of the end of the third quarter, TDRs were 10.95 percent of loans and 60.86 percent of net worth. All TDRs are in nonaccrual status.

Allowance for loan and lease losses rose by 70.8 percent during the third quarter to $68.1 million. Melrose's coverage ratio (allowance for loan and lease losses to delinquent loans) was 54.15 percent on September 30.

The credit union's third quarter loss caused its net worth to fall to $360.6 million. As a result, the credit union's net worth ratio declined from 18.04 percent on June 30 to 17.30 percent on September 30.

No comments:

Post a Comment

 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.