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Medallion Bank Reports 2020 Fourth Quarter and Full Year Results and 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 fourth quarter and full year results. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq:MFIN).\n\n2020 Fourth Quarter Highlights\n\n\nRecord quarterly net income of $14.3 million, compared to net income of $6.7 million in the prior year period.\n\n\nQuarterly net interest income was $31.3 million, compared to $27.7 million in the prior year period.\n\n\nQuarterly provision for loan losses was a benefit of $4.0 million, compared to a loss of $9.8 million in the prior year period.\n\n\nNet charge-offs were 9.68% of average loans outstanding, driven primarily by medallion loan charge-offs, compared to 3.14% in the prior year period.\n\n\nThe total exposure of the medallion lending segment, which includes loans in process of foreclosure and remarketed assets, was $44.9 million, or 3% of total assets, as of December 31, 2020, compared to $116.8 million, or 10%, at December 31, 2019. Of that exposure, the medallion loan portfolio net of the allowance for loan losses was $7.9 million as of December 31, 2020, compared to $80.1 million at December 31, 2019.\n\n\nTotal assets were $1.3 billion as of December 31, 2020.\n\n\nThe Bank had $218.5 million in capital and a Tier 1 leverage ratio of 16.93% as of December 31, 2020.\n\n\n2020 Full Year Highlights\n\n\nNet income was $2.5 million, compared to net income of $20.4 million in 2019.\n\n\nNet interest income was $118.3 million, compared to $104.2 million in 2019.\n\n\nReturn on assets was 0.20%, compared to 1.85% in 2019.\n\n\nProvision for loan losses was $63.0 million, compared to $42.5 million in the prior year.\n\n\nNet charge-offs were 4.98% of average loans outstanding, compared to 4.23% in 2019.\n\n\nThe recreation loan portfolio grew 11% and the home improvement loan portfolio grew 35% in 2020.\n\n\nAll medallion loans were placed on nonaccrual during the 2020 third quarter and New York medallions were adjusted down to a collateral value of $79,500, net of liquidation costs, as of December 31, 2020.\n\n\nThe medallion loan portfolio decreased from $107.7 million to $32.7 million,...