Thursday, August 4, 2016

Taxi Medallion Lender LOMTO FCU Reports Continued Asset Quality Problems

Taxi medallion lender LOMTO Federal Credit Union (Woodside, NY) reported continued asset quality concerns.

According to the credit union's Call Report, loans 60 days or more delinquent edged higher during the second quarter. At the end of the second quarter, loans 60 days or more delinquent were almost $23.5 million. This is up from $22.4 million at the the end of the first quarter of 2016.

In addition, the credit union reported $2.6 million in net charge-offs as of mid-year 2016. This was up from approximately $1 million at the end of the first quarter.

The delinquency rate rose from 9.59 percent at the end of the first quarter to 10.18 percent at the end of the second quarter. Delinquent loans were 83.91 percent of the credit union's net worth.

Over the same time period, LOMTO FCU reported a drop in early delinquencies from $15.3 million to $9.1 million.

Troubled Debt Restructured (TDR) loans edged lower during the quarter from $35.8 million to $34.3 million. According to its Call Report, nearly $18.5 million in TDR loans were in accrual status. As of June 2016, TDR loans were 14.90 percent of loans and 122.7 percent of net worth.

Foreclosed assets at LOMTO FCU were almost $8.5 million at the end of the second quarter, down slightly from $8.6 million at the end of the first quarter.

LOMTO FCU reported a six month loss of almost $4.3 million. For the second quarter, the credit union recorded a loss of $476,000 for the quarter.

The credit union reported provisions for loan and lease losses of $5.2 million as of June, up almost $900,000 from the first quarter.

The credit union reported an allowance for loan and losses (ALLL) of $21.9 million as of June 2016. The credit union's coverage ratio (ALLL divided by delinquent loans) was 93.37 percent. However, the credit union reported that $9.1 million in ALLL was attributed to TDR loans.

As of June 2016, net worth was almost $28 million. Its net worth ratio was 11.05 percent -- down 5 basis points from the first quarter of 2016.

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