Wednesday, May 15, 2019

Struggling with Taxi Medallion Loans, Van Cortlandt Cooperative CU to Merge into USAlliance FCU (Updated)

Credit unions continue to experience collateral damage from the disruption of the taxi industry from ride sharing apps.

The latest casualty is Van Cortlandt Cooperative Federal Credit Union (Bronx, NY).

The National Credit Union Administration in the first quarter approved the merger of Van Cortlandt Cooperative FCU into USAlliance Federal Credit Union (Rye, NY).

While the official reason cited for the merger is expanded services, the credit union was being negatively impacted by participation loans financing taxi medallions.

Since the beginning of 2018, the credit union charged off almost $6.5 million in commercial loan participations not secured by real estate.

In addition, the credit union recorded losses of $91,630 for 2018 and $69,709 for the first quarter of 2019.

Update: Credit Union Journal is reporting that the merger between the two credit unions has been cancelled.
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2 comments:

  1. AnonymousMay 17, 2019 at 12:42 PM

    It would be helpful to reference the asset size of the CU's in articles like this

    ReplyDelete
    Replies
    1. Keith LeggettMay 17, 2019 at 12:51 PM

      Good point. Asset size was just shy of $64.2 million.

      Delete

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