Tuesday, October 25, 2016

What Does SBNY's Earnings Report Tell Us About CU's Chicago Taxi Medallion Valuations?

Signature Bank threw in the towel on its Chicago taxi medallion portfolio and made the decision to reserve for or write down each Chicago taxi medallion loans to $60,000.

Here are some highlights from the press release on taxi medallion loans in Chicago.

During the third quarter, Signature Bank had $61.7 million in provisioning expenses for its Chicago taxi medallion portfolio.

According to the press release, $95.1 million of the charge-offs in the 2016 third quarter were for the Chicago taxi medallion portfolio. The remaining Chicago taxi medallion portfolio balance is $58.4 million with an associated allowance for loan losses of $12.6 million for a net exposure of $45.8 million.

As of September 30, 2016, non-accrual loans were $162.8 million of which $140.1 million were taxi medallion loans.

This would suggest that credit unions with Chicago taxi medallion loans will need to recognize losses in their Chicago taxi medallion portfolio.

Read the press release.

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.