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Charge-Offs Jump in Q4 at Taxi Medallion Lender Progressive CU "Credit News 24"

Taxi medallion lender Progressive Credit Union (New York, NY) posted a small profit of $265 thousand for the fourth quarter of 2017; but a loss of $52.1 million for the full year of 2017.

The credit union had set aside provisions of almost $61.7 million at the end of 2017 to help cover expected taxi medallion loan losses.

Progressive Credit Union's net worth was $200.3 million at the end of 2017 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 2017, 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 2017 to 11.45 percent at the end of 2017; but was well above the delinquency rate of 3.45 percent as of December 2015.


The credit union at the end of 2017 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 2017 to $37.4 million as of December 2017. 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 2017 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 2017. The portion of ALLL allocated to TDR loans was $21.1 million at the end of 2017.

At the end of 2017, the credit union had a buffer of $266.1 million to absorb expected and unexpected losses.






Title : Charge-Offs Jump in Q4 at Taxi Medallion Lender Progressive CU "Credit News 24"
link : Charge-Offs Jump in Q4 at Taxi Medallion Lender Progressive CU "Credit News 24"