Wednesday, May 10, 2017

Q1 2017 Delinquent Loans Fall at Progressive CU, as Net Charge-off Rate Surges

Taxi medallion lender Progressive Credit Union (New York, NY) reported a loss of $25.6 million for the first quarter. The loss was primarily due to a $26.4 million increase in provisions for loans and lease losses.

The loss caused the credit union's net worth to fall from almost $195 million at the end of 2016 to $169.4 million as of March 31, 2017. As a result, the credit union's net worth ratio fell from 32.96 percent to 31.10 percent over the same time period.

The credit union reported a decline in delinquent loans during the first quarter of 2017. Loans 60 days or more past due fell from slightly less than $66.5 million at the end of 2016 to $46.1 million at the end of the first quarter of 2017. Its delinquency rate fell from 11.45 percent to 9.16 percent.
However, early delinquencies increased during the first quarter of 2017. Loans 30 to 59 days past due rose from $14.6 million at the end of 2016 to $21.1 million as of March 31, 2017.

Net charge-offs were $34.8 million during the first quarter of 2017. The net charge-off rate was 25.71 percent. At the end of 2016, the net charge-off rate was 6.32 percent.

Progressive reported a decline in outstanding troubled debt restructured (TDR) loans during the first quarter -- falling from $124.3 million as of December 2016 to slightly less than $117 million as of March 2017. TDR loans were 23.23 percent of total loans and 69.05 percent of net worth.

Foreclosed and repossessed other assets were $29.9 million as of March 31, 2017 -- up from $7.1 million at the end of 2016 and $1.2 million from a year ago.

Given that net charge-offs exceeded provisions for loan and lease losses, Progressive Credit Union's allowance for loan and lease losses fell by $8.4 million during the quarter to $62.7 million on March 31, 2017. The TDR portion of allowance for loan and lease losses was approximately $24.6 million at the end of the first quarter.

the credit union's coverage ratio rose during the first quarter to 135.88 percent.
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