Battered by the decline in the taxi industry, LOMTO Federal Credit Union (Woodside, NY) reported a loss of $5.2 million during the first quarter of 2018, after recording a 2017 loss of $51.2 million.
The first quarter loss was due to a provision for loan and lease losses of $4.3 million during the first quarter of 2018.
The quarterly loss caused the credit union's net worth to fall to minus $42.7 million as of the end of March 2018. The credit union's net worth ratio was minus 25.08 percent.
LOMTO had $132.6 million in commercial loans not secured by real estate. These loans were to finance taxi medallions. Medallion loans were approximately 80 percent of the credit union's assets.
The credit union reported delinquent loans of $18.2 million, almost all were member commercial loans not secured by real estate. This means that 13.10 percent of its loans were 60 days or more past due.
In addition, $16.9 million in loans were 30 to 59 days past due.
Net charge-offs during the first quarter were almost $8.4 million. In 2017, net charge-offs were $46.8 million.
Troubled debt restructured (TDR) commercial loans not secured by real estate were $14.8 million. As of March 2018, 4.75 percent of TDR commercial loans were 60 days or more past due.
Despite the increase in provisioning for loan and lease losses, allowance for loan and lease losses fell by 26.8 percent during the first quarter to $23.5 million. The credit union's coverage ratio was 129.35 percent.
LOMTO has tapped $85 million of its $110 million credit line. This $110 million credit line is guaranteed by the National Credit Union Share Insurance Fund.
LOMTO FCU was placed into conservatorship on June 26, 2017.
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