Tuesday, February 14, 2017

Charge-Offs Jump in Q4 at Taxi Medallion Lender Progressive CU

Taxi medallion lender Progressive Credit Union (New York, NY) posted a small profit of $265 thousand for the fourth quarter of 2016; but a loss of $52.1 million for the full year of 2016.

The credit union had set aside provisions of almost $61.7 million at the end of 2016 to help cover expected taxi medallion loan losses.

Progressive Credit Union's net worth was $200.3 million at the end of 2016 and had a net worth ratio of 33.5 percent.

The credit union reported approximately $66.5 million in delinquent loans at the end of 2016, which was down $4.1 million from the prior quarter. As a result, delinquency rate on loans edged lower from 11.62 percent as of September 2016 to 11.45 percent at the end of 2016; but was well above the delinquency rate of 3.45 percent as of December 2015.


The credit union at the end of 2016 had a delinquent loan to net worth ratio of 33.18 percent.

Early delinquencies (loans 30 to 59 days past due) rose by 3.1 percent during the fourth quarter to $14.64 million.

The credit union recorded a jump in charged off loans during the fourth quarter. Net charge-offs went from $10.8 million as of September 2016 to $37.4 million as of December 2016. The net charge-off rate rose 2.37 percent to 6.32 percent over the same time period.

Outstanding Troubled Debt Restructured (TDR) loans at the end of 2016 were $124.3 million -- up 0.7 percent from the prior quarter. TDR loans as a percent of total loans and net worth were 21.41 percent and 62.06 percent, respectively.

Due to the increase in charge-offs, the credit union's allowance for loan and lease losses (ALLL) fell by $25.3 million during the fourth quarter to $65.8 million. As a result, the coverage ratio (ALLL to delinquent loans) was 99.05 percent at the end of 2016. The portion of ALLL allocated to TDR loans was $21.1 million at the end of 2016.

At the end of 2016, the credit union had a buffer of $266.1 million to absorb expected and unexpected losses.





2 comments:

  1. Kicking the can.
    Will be conserved this time next year.
    The time to deal with them is now, not next year.
    Where's the regulator?

    ReplyDelete
  2. Hello NCUA: The Clowns at the NCUA are now driving the Clown Car at Progressive. Look at trend analysis: Year End 2014 net income is $10,200,000. 2015 they go (-$19,500,000). 2016 they go (-$52,100,000). Hello NCUA...the Negative represents Million$. Over $19M Negative in 2015. Over $52M Negative in 2016. Can you identify a trend? Look at ROA during the same years: 2014 +1.48%, 2015 -2.90% & 2016 -8.39%. Good they have equity of $195M...but don't forget the Note Payable of $93.5M. Suggests equity realistically is approximately $100M. Fire the CEO & Board...not at the credit union...at the NCUA.

    ReplyDelete

 

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