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Medallion Bank Reports 2021 Third Quarter Results and Declares Series F Preferred Stock Dividend
SALT LAKE CITY, Oct. 28, 2021 (GLOBE NEWSWIRE) -- Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank providing consumer loans for the purchase
About this update from Medallion Financial Corp.
[{"type":"text","content":"SALT LAKE CITY, Oct. 28, 2021 (GLOBE NEWSWIRE) -- Medallion 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 third quarter results. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN). 2021 Third Quarter Highlights Record net income of $19.7 million, compared to a net loss of $13.2 million in the prior year period.Net interest income of $35.3 million, compared to $31.1 million in the prior year period.Loan loss benefit was $0.2 million, driven by lower consumer borrower defaults and recoveries from previous period loan losses, compared to a quarterly provision of $35.3 million in the prior year period.Annualized net charge-offs were 1.6% of average loans outstanding, compared to 5.1% in the prior year period.Recreation and home improvement loans in a state of delinquency were 2.0% of the total combined recreation and home improvement loan portfolios.The recreation and home improvement loan portfolios grew 15.9% and 26.4%, respectively, from September 30, 2020.Total assets were $1.5 billion, total capital was $257.7 million, and the Tier 1 leverage ratio was 18.2% at September 30, 2021. Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “We again achieved record quarterly net income, reflecting ongoing strong performance in our consumer lending businesses. Loan origination growth remained elevated, and we continued to benefit from historically low loan loss provisions. The Bank is fortunate to be operating in markets that have experienced demand surges during the COVID pandemic. This has allowed us to deliver four consecutive quarters of significant bottom-line results, which are reflected in our year-to-date return on assets of 5.0% and return on equity of 28.9%. We continue to execute our strategy and are optimistic about future growth and performance.” Recreation Lending Segment The Bank’s recreation loan portfolio grew 15.9% to $938.7 million as of September 30, 2021, compared to $809.9 million at September 30, 2020.Net interest income was $27.8 million compared to $25.4 million in the prior year period.Recreation loans were 69.5% of loans receivable as of September 30, 2021, as comp...