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Medallion Bank Reports 2022 Second Quarter Results and Declares Series F Preferred Stock Dividend
SALT LAKE CITY, July 27, 2022 (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, July 27, 2022 (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 offering loan origination services to fintech strategic partners, announced today its results for the period ended June 30, 2022. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN). 2022 Second Quarter Highlights Net income of $17.9 million, compared to net income of $17.5 million in the prior year period.Net interest income of $40.0 million with a net interest margin of 9.5%, compared to $33.1 million and 10.0% in the prior year period.Annualized ROA and ROE were 4.2% and 25.9%, respectively, as of June 30, 2022, compared to 5.2% and 30.0% in the prior year period.Provision for loan losses was $6.0 million, compared to a benefit of $0.4 million in the prior year period.Annualized net charge-offs were 0.2% of average loans outstanding, compared to 3.9% in the prior year period.The total loan portfolio grew 28.5% to $1.6 billion during the 12-month period ending June 30, 2022.Total assets were $1.8 billion, total capital was $282.9 million, and the Tier 1 leverage ratio was 17.0% at June 30, 2022. Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “We recorded another quarter of substantial earnings, driven by record loan originations on sustained demand for our products that serve the recreation vehicle, marine, and home improvement industries. Despite rising interest rates and inflationary pressure, our borrowers continued to perform well and loan losses remained lower than historical norms. While the provision for loan losses grew year-over-year commensurate with loan growth, net recoveries of $2.3 million in our medallion loan portfolio were a helpful offset. We continue to focus on serving our customers with an optimal balance of high tech and high touch in order to deliver superior financial performance.” Recreation Lending Segment The Bank’s recreation loan portfolio grew 23.2% to $1.1 billion as of June 30, 2022, compared to $891.6 million at June 30, 2021.Net interest income was $30.3 million, compared to $26.0 million in the prior year period.Recreation loans were 67.1% of loans receivable as of June 30, 2022, compared to 69.9% at June 30, ...