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.
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