WOODSIDE, N.Y. –Another credit union that primarily made taxi medallion loans has been liquidated by NCUA as its net worth remained deep in negative territory.
The agency has shut down the $156-million LOMTO FCU here, with Teachers FCU in Hauppauge, N.Y. assuming LOMTO’s members and most shares as well as some loans and other assets.
The $6.1-billion Teachers FCU has approximately 300,500 members.
As CUToday.info earlier reported here, LOMTO FCU was placed into conservatorship on June 26, 2017.Over the last year, the credit union has shrunk from $218.9 million in assets to $156 million.
LOMTO reported a loss of $11.3 million for the second quarter. As of mid-year 2018, the credit union had a loss of $16.5 million.
A mid-year analysis of the credit union showed that due to the second quarter loss, LOMTO’s net worth had fallen by 26.4% to almost negative $54 million as of June 2018. The credit union's net worth ratio was minus 34.57%.
As of its most recent call report LOMTO had approximately 2,200 members.
NCUA said it has retained some of LOMTO members’ loans.
The existing LOMTO offices located at 5024 Queens Boulevard in Woodside and at 180 Riverside Boulevard will remain open, the agency said.
As CUToday.info has also reported, NCUA currently has nearly $1 billion in reserves for potential losses, which is believed to be funds set aside in anticipation of failed taxi medallion loans. Those loans and the underlying collateral have plunged in value due to the emergence of ride-sharing apps such as Uber and Lyft.