During the third quarter, delinquent loans increased by $4.1 or 8.2 percent to $53.7 million.
As of September, Quorum FCU reported that 7.22 percent of its loans were 60 days or more past due. This was up from 6.74 percent as of June 2017 and 4.20 percent from a year ago.
Almost 80 percent of the credit union's delinquencies were participation loans, presumably taxi medallion participation loans. As of September 30, 2017, delinquent participation loans were almost $42.7 million -- up $3.2 million from the previous quarter and $22.6 million from a year ago, respectively.
The credit union reported $113 million in participation loans, of which $79.7 million were commercial loans. It appears that $70.6 million of the commercial loans were taxi medallion participation loans.
As of September 30, the delinquency rate on participation loans was 37.57 percent. This was up from 16.35 percent from a year ago.
Troubled debt restructured commercial loans not secured by real estate were $24.4 million.
The credit union reported a year-to-date profit of $427 thousand; but a third quarter loss of $2.3 million. The loss was driven by a $6.7 million increase in provision for loan and lease losses during the quarter.
The quarterly loss caused the credit union's net worth to fall from $68.2 million as of June 2017 to $65.9 million as of September 2017.
As a result, the net worth ratio fell 15 basis points during the quarter to 7.65 percent on September 30, 2017.
The increase in provisions for loan and lease losses caused the allowances for loan and lease losses to increase to $34.2 million at the end of the third quarter from $28.9 million a quarter earlier.
Quorum's coverage ratio (allowances for loan and lease losses to delinquent loans) was 63.65 percent as of September 2017 -- up from 58.22 percent as of June 2017, but down from 82.57 percent from a year ago.
Quorum ended its taxi medallion participation loan program in 2013.
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