On its Q3 2017 quarterly earnings conference call held on October 26, 2017, ConnectOne Bancorp discussed its exposure to New York City taxi medallions. CNOB's NYC taxi medallion loans total $44.7MM, equivalent to 1% of the aggregate value of all NYC taxi medallions. (Taxi medallion lending comprises 1.1% of CNOB's net loans receivable.)
As of September 30, 2017, CNOB reduced its valuation per NYC taxi medallion to $348,000 from $374,000 as of June 30, 2017.
CNOB had put its taxi medallion loan book on "held for sale" status but is considering returning it to "held for investment" status since the portfolio is cash flowing and anticipated institutional buyers are not yet ready to buy portfolios. Currently, the taxi medallion loans are on non-accrual, so: 1) interest is not being recognized as income; and, 2) all cash, whether principal or interest, is going to reduce the principal of the loans.
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