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Medallion Bank Reports 2019 Fourth Quarter and Full Year Results
SALT LAKE CITY--(BUSINESS WIRE)-- Medallion Bank (Nasdaq: MBNKP, “the Bank” or the “Company”), an FDIC-insured bank specializing in recreation and home
About this update from Medallion Financial Corp.
[{"type":"text","content":" SALT LAKE CITY--(BUSINESS WIRE)--\nMedallion Bank (Nasdaq: MBNKP, “the Bank” or the “Company”), an FDIC-insured bank specializing in recreation and home improvement lending announced today its 2019 fourth quarter and full year results. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).\n\n\n2019 Fourth Quarter Highlights\n\n\n\nNet income was $9.2 million, compared to $2.4 million in the prior year period\n\n\nNet interest income was $27.7 million, compared to $24.4 million in the prior year period\n\n\nProvision for loan losses was $6.3 million, compared to $11.2 million in the prior year period\n\n\nNet charge-offs were 3.19% of average loans outstanding, compared to 6.90% in the 2018 quarter\n\n\nTotal assets were $1.20 billion as of December 31, 2019\n\n\nThe tier 1 leverage ratio was 19.56% as of December 31, 2019\n\n\n\n2019 Full Year Highlights\n\n\n\nNet income was $23.0 million, up more than 300% from $5.7 million in the prior year period\n\n\nReturn on assets was 2.08%, compared to 0.54% in 2018\n\n\nProvision for loan losses was $39.0 million, compared to $50.7 million in the prior year\n\n\nNet charge-offs were 4.30% of average loans outstanding, compared to 5.60% in 2018\n\n\nThe recreation loan portfolio grew 20% in 2019\n\n\nThe home improvement loan portfolio grew 35% in 2019\n\n\nThe medallion loan portfolio decreased from $153.1 million to $107.7 million, or 30%, during 2019\n\n\nNet interest income was $104.2 million, compared to $98.2 million in the prior year, driven by loan growth in the consumer loan portfolios\n\n\n\nDonald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “The Bank had a productive fourth quarter as we completed our initial public offering of preferred stock on the Nasdaq Capital Market exchange. We will now report our earnings in conjunction with filing our quarterly Call Report. This was the Bank’s second straight quarter of net income over $9 million and the most profitable six months in company history, which helped to produce a 2.08% return on assets for the year. Our results reflect consistent performance from our recreation and home improvement lending segments, as we continue to liquidate the remaining medallion loan portfolio. With the $46 million preferred stock offering successfully completed in December, and now with mo...