LOMTO Federal Credit Union (Woodside, NY) was insolvent due to bad taxi medallion loans, according to its most recent call report.
LOMTO FCU was placed into conservatorship on June 26, 2017.
The $193.3 million credit union reported a year-to-date loss of $38.5 million as of September 2017. During the third quarter of 2017, the credit union recorded a quarterly loss of $27.7 million.
The year-to-date loss arose from an increase in provision for loan and lease losses over the first 3 quarters of $38 million.
As a result of the loss, the credit union's net worth fell to negative $24.9 million from $2.9 million at the end of June 2017. The credit union's net worth ratio fell from 1.31 percent to minus 12.86 percent over the same time period.
The credit union reported $39.1 million in delinquent loans. As of September 2017, the credit union's delinquency rate was 21.58 percent.
In addition, the credit union is reporting that almost $10 million in loans were in the early stage of delinquency (30 to 59 days past due) at the end of the third quarter.
Furthermore, the credit union is reporting slightly less than $12.2 million in net charge-offs. As of September 2017, the net charge-off rate was 8.18 percent.
At the end of the third quarter, LOMTO had $14.5 million in foreclosed and repossessed assets, down from $23.5 million from the prior quarter.
The increase in provision for loan and lease losses enabled LOMTO to build its allowance for loan and lease losses account to $38.2 million. The coverage ratio as of September 2017 was 97.73 percent, up from 62.39 percent in the previous quarter. Approximately $12.5 million in allowance for loan and lease losses was tied to $20.5 million in troubled debt restructured loans.
During the third quarter, assets at LOMTO fell by $25.6 million to $193.3 million.
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