Today, I will examine the financial performance of Progressive Credit Union, the second largest New York-based taxi medallion credit union with almost $692 million in assets.
During the second quarter of 2015, Progressive Credit Union saw a 74 percent increase in loans 60-days or more past due to $6.5 million. As of the end of the second quarter, the credit union reported that 1.04 percent of all loans were delinquent.
Early delinquencies (loans 30 to 59 days past due) rose by almost 37 percent during the quarter to almost $4 million Compared to a year earlier, early delinquencies were slightly less than $1 million.
Progressive reported that outstanding trouble debt restructurings (TDRs) continued to grow during the quarter to nearly $18.8 million (all of these loan are in nonaccrual status). Compared to last quarter and a year ago, outstanding TDRs stood at almost $16.9 million and $0, respectively.
Progressive has reported its provisioning for loan and lease losses increased during the second quarter. Provisions increased from $1.7 million as of March 2015 to $4.2 million at the end of the second quarter. As a result, Progressive reported a smaller year-to-date profit of almost $4.4 million compared to $9 million for the same period a year ago.
As of June, the credit union has allowances for loan and lease losses (ALLL) of almost $11.7 million up from $9.1 million from the previous quarter. This indicates that the credit union is well reserved with a coverage ratio (ALLL to Delinquent Loans) of 179.53 percent.
Progressive Credit Union currently has equity capital of $273.8 million. Its net worth ratio is 39.94 percent.
This means the credit union has a buffer (capital plus ALLL) of over $285 million to absorb expected and unexpected losses.
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