Monday, March 13, 2017

The Value of Taxi Medallions

What is the value of taxi medallions in New York City and Chicago?

The recent 8-K filing by Medallion Financial on March 7 provides some guidance.

Medallion Financial wrote:
"[W]e have reduced the estimated value of New York City unrestricted medallion collateral to $500,000 for individual medallions and to $550,000 for corporate medallions, and reduced Chicago medallions to $60,000."

This would suggest that the estimated value for New York City taxi medallions are down approximately 50 percent from their peak in 2014 and the estimated value for Chicago taxi medallions are down about 80 percent from their peak.

Medallion Financial further stated:
"For non-performing medallion loans and the owned Chicago medallions, we have taken unrealized depreciation adjustments in accordance with these estimated collateral values."

The financial filings by publicly traded banks will provide insights into what will probably occur at credit unions with exposure to taxi medallion loans.

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4 comments:

  1. AnonymousMarch 14, 2017 at 9:15 AM

    State of denial.
    They're probably not worth $300,000.
    CU folks should read Marvin Umholtz recent newsletter.
    Board member mcwatters appears to be in denial also.

    ReplyDelete
  2. tony costanzoMarch 15, 2017 at 12:06 AM


    According to the NCUA’s 12/31/16 financial performance report for Melrose Credit Union (charter #62005), the credit union’s net worth ratio was 5.73%, its total delinquent loans to net worth was reported at an astounding 490.41%. Its delinquent loans to total loans ratio was 28.64% and its net charge-offs to total loans was 10.23%. The total loans to total shares ratio was 108.47%. Its return on average assets was -5.33%. The net worth growth rate was -50.18%. How many NCUA village idiots allowed such concentration risk at Melrose?

    ReplyDelete
  3. tony costanzoMarch 15, 2017 at 12:08 AM

    According to the NCUA’s 12/31/16 financial performance report for Melrose Credit Union (charter #62005), the credit union’s net worth ratio was 5.73%, its total delinquent loans to net worth was reported at an astounding 490.41%. Its delinquent loans to total loans ratio was 28.64% and its net charge-offs to total loans was 10.23%. The total loans to total shares ratio was 108.47%. Its return on average assets was -5.33%. The net worth growth rate was -50.18%.
    What idiots at the NCUA allowed such massive concentration risk at Melrose?

    ReplyDelete
  4. AnonymousMarch 15, 2017 at 4:32 PM

    Tony.
    That was worth repeating!

    ReplyDelete

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