Tuesday, February 14, 2017

Charge-Offs Jump in Q4 at Taxi Medallion Lender Progressive CU

Taxi medallion lender Progressive Credit Union (New York, NY) posted a small profit of $265 thousand for the fourth quarter of 2016; but a loss of $52.1 million for the full year of 2016.

The credit union had set aside provisions of almost $61.7 million at the end of 2016 to help cover expected taxi medallion loan losses.

Progressive Credit Union's net worth was $200.3 million at the end of 2016 and had a net worth ratio of 33.5 percent.

The credit union reported approximately $66.5 million in delinquent loans at the end of 2016, which was down $4.1 million from the prior quarter. As a result, delinquency rate on loans edged lower from 11.62 percent as of September 2016 to 11.45 percent at the end of 2016; but was well above the delinquency rate of 3.45 percent as of December 2015.

The credit union at the end of 2016 had a delinquent loan to net worth ratio of 33.18 percent.

Early delinquencies (loans 30 to 59 days past due) rose by 3.1 percent during the fourth quarter to $14.64 million.

The credit union recorded a jump in charged off loans during the fourth quarter. Net charge-offs went from $10.8 million as of September 2016 to $37.4 million as of December 2016. The net charge-off rate rose 2.37 percent to 6.32 percent over the same time period.

Outstanding Troubled Debt Restructured (TDR) loans at the end of 2016 were $124.3 million -- up 0.7 percent from the prior quarter. TDR loans as a percent of total loans and net worth were 21.41 percent and 62.06 percent, respectively.

Due to the increase in charge-offs, the credit union's allowance for loan and lease losses (ALLL) fell by $25.3 million during the fourth quarter to $65.8 million. As a result, the coverage ratio (ALLL to delinquent loans) was 99.05 percent at the end of 2016. The portion of ALLL allocated to TDR loans was $21.1 million at the end of 2016.

At the end of 2016, the credit union had a buffer of $266.1 million to absorb expected and unexpected losses.


  1. Kicking the can.
    Will be conserved this time next year.
    The time to deal with them is now, not next year.
    Where's the regulator?

  2. Hello NCUA: The Clowns at the NCUA are now driving the Clown Car at Progressive. Look at trend analysis: Year End 2014 net income is $10,200,000. 2015 they go (-$19,500,000). 2016 they go (-$52,100,000). Hello NCUA...the Negative represents Million$. Over $19M Negative in 2015. Over $52M Negative in 2016. Can you identify a trend? Look at ROA during the same years: 2014 +1.48%, 2015 -2.90% & 2016 -8.39%. Good they have equity of $195M...but don't forget the Note Payable of $93.5M. Suggests equity realistically is approximately $100M. Fire the CEO & Board...not at the credit union...at the NCUA.