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LOMTO FCU Posted Small Profit in Q1 2018, As Delinquent Loans Increase "Credit News 24"

Taxi medallion lender LOMTO Federal Credit Union (Woodside, NY) posted a small profit for the first quarter of 2018, despite an increase in delinquent loans.

LOMTO FCU recorded a profit of $462,019 for the first quarter of 2018, after posting a 2016 loss of almost $18.6 million. The return to profitability was primarily due to a recapture of $309,621 in loan loss reserves during the first quarter.

As a result, the credit union experienced a 3.4 percent increase in net worth during the quarter to $14.1 million as of March 2018. However, compared to a year ago the credit union's net worth was down 50.3 percent.

The credit union's net worth ratio edged higher to 5.97 percent at the end of the first quarter of 2018. The credit union is currently undercapitalized.

LOMTO FCU reported an increase in delinquent loans during the first quarter. Loans 60 days or more delinquent increased from $30.9 million at the end of 2016 to almost $42.8 million at the end of the first quarter of 2018. As a result, the delinquency rate went from 14.36 percent to 20.55 percent over the same time period.
LOMTO also reported $12.7 million in loans that were 30 to 59 days past due as of the first quarter of 2018 -- up from $10.9 million at the end of 2016.

The credit union charged off $2.9 million in loans during the first quarter. The net charge-off rate was 5.53 percent as of March 31, 2018 -- up from 4.90 percent at the end of 2016.

Foreclosed and repossessed other assets, presumably taxi medallions, were $13.7 million as of March 2018 -- up from $11.3 million the previous quarter.

Outstanding troubled debt restructured (TDR) loans were $23.2 million at the end of the first quarter of 2018. TDR loans were 11.16 percent of all loans and 164.45 percent of net worth.

LOMTO reported that it has $21.9 million in allowances for loan and lease losses at the end of the first quarter, of which $9.3 million was allocated to cover TDR loans. The combination of a decline in loan loss reserves and an increase in delinquent loans caused LOMTO's coverage ratio to fall from 81.37 percent at the end of 2016 to 51.21 percent on March 31, 2018.

In addition, the Chicago Tribune is reporting that LOMTO has filed 28 lawsuits against taxi companies so far this year in Cook County Circuit Court.






Title : LOMTO FCU Posted Small Profit in Q1 2018, As Delinquent Loans Increase "Credit News 24"
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