San Francisco Federal Credit Union reported a surge in troubled debt restructured (TDR) commercial loans during the first quarter of 2018.
TDR commercial loans not secured by real estate increased from $2.9 million at the end of 2017 to almost $9.3 million as of March 31, 2018.
As of March 31, 2018, the credit union reported $48.4 million in commercial loans not secured by real estate. Presumably most of these commercial loans were taxi medallion loans.
While TDR commercial loans increased during the first quarter, delinquent commercial loans fell during the quarter from $6.9 million at the end of 2017 to $2.2 million at the end of the first quarter of 2018. The delinquency rate for commercial loans not secured by real estate was 4.57 percent, as of March 31, 2018.
However, the pipeline of early delinquent commercial loans not secured by real estate (30 to 59 days past due) increased by almost 50 percent to $4 million. This means the delinquency rate for these commercial loans was 8.3 percent.
The credit union reported charging off $911,250 in commercial loans not secured by real estate with recoveries of $68,182 during the first quarter.
San Francisco FCU is suing the San Francisco Municipal Transportation Agency over the collapse of the taxi medallion market in San Francisco.
Despite the increase in commercial loan TDRs, the credit union was profitable and well-capitalized.
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