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Medallion Bank Reports 2020 First Quarter Results and Board of Directors Declares Series F Preferred Stock Dividend
SALT LAKE CITY--(BUSINESS WIRE)-- Medallion Bank (Nasdaq: MBNKP, “the Bank”), an FDIC-insured bank providing consumer loans for the purchase of recreational
About this update from Medallion Financial Corp.
[{"type":"text","content":" SALT LAKE CITY--(BUSINESS WIRE)--\nMedallion Bank (Nasdaq: MBNKP, “the Bank”), an FDIC-insured bank providing consumer loans for the purchase of recreational vehicles, boats and home improvements, along with loan origination services to fintech partners, announced today its 2020 first quarter results. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).\n\n\n2020 First Quarter Highlights\n\n\n\nNet loss was $0.4 million, compared to net income of $2.4 million in the 2019 first quarter\n\n\nNet interest income was $27.8 million, compared to $23.9 million in the prior year period\n\n\nProvision for loan losses was $15.3 million, compared to $11.2 million in the prior year period, while annualized net charge-offs were 3.42% of average loans outstanding, compared to 5.33% in the prior year period\n\n\nThe gross recreation and home improvement loan portfolios both grew 3% from December 31, 2019\n\n\nThe gross medallion loan portfolio decreased 3% to $105.1 million compared to $108.4 million at December 31, 2019\n\n\nTotal assets were $1.2 billion as of March 31, 2020\n\n\nThe Bank had $224 million in capital and a Tier 1 leverage ratio of 18.78% as of March 31, 2020\n\n\nDuring March, the Bank launched its first fintech strategic partnership, which will leverage the Bank’s compliance, lending operations, and management expertise\n\n\n\nDonald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “The Bank had a strong start to the year but the escalating COVID-19 pandemic led us to increase our loan loss reserves in March. In addition, transaction activity during the quarter indicated the need to lower medallion collateral values substantially in New York City, which reduced the Bank’s net income by approximately $7 million. While it is too early to predict how our consumer portfolio will be affected by the current economic disruption, we structured the Bank with resilience in mind and remain optimistic the Bank is well positioned to respond to opportunities to grow market share. The annualized consumer loan delinquency rate is only modestly higher than it was this time last year, our capital position remains strong, and our focus is on credit quality while moving forward cautiously. I am proud of how our employees have adapted and continued serving our customers and borrowers while ...