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Melrose CU Is Significantly Undercapitalized "Credit News 24"

Melrose Credit Union (Briarwood, NY) was significantly undercapitalized at the end of the first quarter 2018.

Due to losses of $38.2 million in the first quarter, the credit union's net worth fell from $102.2 million at the end of 2016 to $64 million at the end of the first quarter of 2018. As a result, the credit union's net worth ratio fell 198 basis points during the quarter to 3.75 percent at the end of the first quarter of 2018.

The $38.2 million loss for the first quarter was due to the credit union increasing provisions for loan and lease losses by almost $40.8 million during the first quarter.

Loans 60 days or more delinquent rose by over $76 million during the first quarter to $577.8 million. As a result, delinquency rate was 33.71 percent a the end of the first quarter.

In addition, $60.4 million in loans were 30 days to 59 days more past due.

After charging off almost $194 million in loans in 2016, the credit union recorded only $1.8 million in net charge-offs during the first quarter of 2018.

The increase in loan loss provisions during the first quarter caused the allowances for loan and lease losses account to increase from $149.2 million at the end of 2016 to almost $188.2 million at the end of the first quarter of 2018.

The coverage ratio edged higher from 29.76 percent at the end of 2016 to 32.57 percent at the end of the first quarter of 2018.

The following table looks at key performance metrics for Melrose Credit Union.





Title : Melrose CU Is Significantly Undercapitalized "Credit News 24"
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