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Medallion Bank Reports 2021 First Quarter 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 2021 first quarter results. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).\n\n2021 First Quarter Highlights\n\n\nQuarterly net income was $13.8 million compared to a net loss of $0.4 million in the prior year period.\n\n\nQuarterly net interest income was $31.0 million, compared to $27.8 million in the 2020 first quarter.\n\n\nQuarterly provision for loan losses was $2.7 million, compared to $15.3 million in the 2020 first quarter.\n\n\nNet charge-offs were 1.0% of average loans outstanding, compared to 3.4% in the prior year period.\n\n\nThe gross recreation and home improvement loan portfolios grew 11% and 34%, respectively, from March 31, 2020.\n\n\nThe total exposure of the medallion lending segment, which includes loan collateral in process of foreclosure and remarketed assets, was $42.6 million, or 3% of total assets, as of March 31, 2021, compared to $107.3 million, or 9%, at March 31, 2020. Of that exposure, the medallion loan portfolio net of the allowance for loan losses was $6.5 million as of March 31, 2021, compared to $74.3 million at March 31, 2020.\n\n\nTotal assets were $1.3 billion, and the Bank had $228.6 million in capital and a Tier 1 leverage ratio of 18.03% as of March 31, 2021.\n\n\nDonald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “Following a strong 2020 fourth quarter, the Bank continued its momentum into 2021 with $13.8 million of first quarter net income. Volume overall remained elevated with record loan volumes in our recreation lending segment in March. Both charge-off and delinquency ratios were low in the quarter. With the high-volume months in our annual cycle still ahead, we expect continued growth throughout the year. New York City taxi medallion values were unchanged from year end but we slightly adjusted downward the values in some of the smaller medallion markets. Such adjustments had an immaterial impact on our earnings this quarter. Finally, we signed our second fintech partner during the first quarter and expect to begin providing loan origination ser...