NEW YORK—A new report sets taxi medallion values in New York City at about half their peak 2014 value.
Keith Leggett, former senior vice president and senior economist at the ABA, in his Credit Union Watch Blog reported that in the recent 8-K filing by Medallion Financial (March 7), the company stated:
"[W]e have reduced the estimated value of New York City unrestricted medallion collateral to $500,000 for individual medallions and to $550,000 for corporate medallions, and reduced Chicago medallions to $60,000."
“This would suggest that the estimated value for New York City taxi medallions are down approximately 50% from their peak in 2014 and the estimated value for Chicago taxi medallions are down about 80% from their peak,” observed Leggett.
Medallion Financial further stated that "For non-performing medallion loans and the owned Chicago medallions, we have taken unrealized depreciation adjustments in accordance with these estimated collateral values," Leggett noted.
Falling medallion values due to the impact of ride sharing services in New York City have led to the conservatorship of the $1.8-billion Melrose CU last year and Montauk CU in September of 2015. Montauk was later merged into Bethpage FCU.