Quorum Federal Credit Union (Purchase, NY) reported an increase in delinquent loans during the second quarter of 2017 driven by poor performing participation loans -- presumably most, if not all, were taxi medallion loans.
The 874.1 million credit union reported $49.6 million in delinquent loans, of which $39.2 million were participation loans.
According to Quorum's financial data, delinquent participation loans increased by 26 percent during the second quarter.
As of June 30, 2017, the percent of participation loans that were 60 days or more past due was 35.08 percent. This was up from 27.36 percent at the end of the first quarter of 2017 and 14.12 percent from a year ago.
If all delinquent participation loans are taxi medallion participation loans, then the delinquency rate of taxi medallion participation loans was 54.3 percent as of June 30.
Additionally, the credit union reported $24.3 million in troubled debt restructured (TDR) business loans, as of June 30, 2017. TDR business loans in accrual status were $13.5 million, while almost $10.9 million of these loans were in nonaccrual status. Total TDR loans were $30.4 million.
According to the credit union's Financial Performance Report, 56.92 percent of TDR business loans not secured by real estate were delinquent.
However, the credit union currently has a combined buffer of net worth and allowances for loan and lease losses of $97.1 million to absorb expected and unexpected losses.
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