During the fourth quarter of 2017, the net worth of Melrose Credit Union (Briarwood, NY) fell by almost $111.7 million to minus $187.9 million, as losses mount from defaulting taxi medallion loans.
The $1.36 billion credit union's net worth ratio was negative 13.79 percent at the end of 2017.
Melrose reported a 2017 loss of $290.2 million, as the credit union reported full-year provision for loan and lease losses of almost $280.8 million.
The insolvent credit union saw a 29 percent decline in delinquent loans during the forth quarter of 2017 to $474.4 million. As of December 31, 2017, the delinquency rate for Melrose was 33.15 percent, down from 4001 percent at the end of the third quarter.
Most of the loans ($456.2 million) that were past due were member commercial loans not secured by real estate.
The decline in delinquent loans was due to the credit union writing off problem taxi medallion loans. Net charge-offs were $195.6 million for 2017. Between the third quarter of 2017 and the fourth quarter of 2017, the average charge-off rate went from 0.16 percent to 12.30 percent, respectively.
Troubled debt restructured (TDR) commercial loans not secured by real estate dropped during the fourth quarter by 20.5 percent to $240 million. As of December 2017, the delinquency rate on these TDR commercial loans was 67.54 percent.
At the end of 2017, the credit union had an allowance for loan and lease losses of $237.6 million. Its coverage ratio (allowance for loan and lease losses to delinquent loans) was 50.09 percent.
At the end of November 2017, the National Credit Union Insurance Fund had reserves of $286.8 million, of which only $20.9 million was for specific natural person credit unions.
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So NCUA has known about how bad the condition is at Melrose, LOMTO etc but not reserving for it?
ReplyDeleteMaybe they should approve more cu mergers of troubled banks too.
Who’s in your wallet?
ReplyDeleteIt seems as though Melrose has uninsured deposits and also over $100 M in borrowings...as we look at the call report.
ReplyDeleteIs that even possible?
Who did they borrow from?
Please tell the NCUA to quit publishing the quarterly call report data. It pains the community to see the ignorant stupidity of a federal civil servant regulatory agency consistently stuck on stupid. What do we know? We know Melrose was a french fry short of a happy meal in 2014. And we know the NCUA knew of the french fry shortage. We know this from a dashboard look at Melrose:
ReplyDelete12-2014: Note Payable $80M
12-2017: Note Payable $141M
12-2014: Assets $2 Billion
12-2017: Assets $1.3 Billion
12-2014 Net Worth $371M
12-2017: Net Worth (-$199M) Yes...MINUS
12-2015: Net Income (-176M) Yes...MINUS
12-2016: Net Income (-$98M) Yes...MINUS
12-2017: Net Income (-$290M) Yes...MINUS
Combined the last 3 years has been a rectal bleed out exceeding $564 Million. Now NEGATIVE $199M in net worth and they have a NOTE payable of $141M. Where is the NCUA Babysitter/Regulator? And what corporate credit union is holding the $141M NOTE? Maybe they are holding the taxi medallion loans as collateral. They shrink Assets & Net Worth goes negative. And the NCUA does nothing. To the NCUA the credit union can't make it up in volume. Don't try to supersize the french fry order. I2-2014 they are 119% loan to share ratio. Hello NCUA...did the concentration risk specialist miss something here? Now 12-2017 the loan to share ratio is 100% looks like the NCUA told them to slow down. Don't stop. Just slow down. In other words...Don't stop beating your spouse...just slow down. Are you kidding? SHUT IT DOWN. The NCUA that is.
Who’s in your member’s wallet?
ReplyDeleteMelrose.
NCUA.
Assessments here we come.
“Rebate?, rebate? We ain’t gettin no rebate”
Who’s in your wallet?
ReplyDeleteCuna nafcu cues.
Standing tall in the face of adversity, asking for more dues and giving us the same %@$#& for conferences.
NCUA has reserves of $21 M for credit union losses?
ReplyDeleteMelrose has $1,5 Billion in taxi loans.
How is that posssibles?
Are you sure about that Leggett?
Melrose and LOMTO have borrowed over $200M from CCUs and NCUA has $21 M in reserves for CUs?
Why is it so hard to get good information on this issue?
Where’s mcwatters transparency?
Where’s Cuna?
Where’s nafcu?
Where’s cues?
What firm is auditing Melrose, NCUA and the CCUs?