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Medallion Mess Leads to Mergers

Taxi medallion loan losses appear to be a leading reason for larger credit union mergers in 2018.

CU merger trends vary from year to year.

The NCUA’s approval of 29 mergers in January and February included the consolidation of an Arizona credit union that lost millions in taxi medallion participation loans, which ironically enabled the credit union to survive the Great Recession.

The $197 million Altier Credit Union of Tempe posted a net income loss of $8.9 million at the end of last year and a net income loss of $824,590 in December 2016, according to NCUA financial performance reports. Altier ended last year with a net worth of 2.47% and an ROA of -4.71%.

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Peter Strozniak

 

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