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Medallion Bank Reports 2022 Third Quarter Results and Declares Series F Preferred Stock Dividend
SALT LAKE CITY, Oct. 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, Oct. 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 loan origination services to fintech strategic partners, announced today its results for the period ended September 30, 2022. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN). 2022 Third Quarter Highlights Net income of $18.3 million, compared to net income of $19.7 million in the prior year period.Net interest income of $43.0 million with a net interest margin of 9.3%, compared to $35.3 million and 10.1% in the prior year period.Annualized ROA and ROE were 3.9% and 25.3%, respectively, as of September 30, 2022, compared to 5.5% and 31.3% in the prior year period.Provision for loan losses was $8.2 million compared to a benefit of $0.2 million in the prior year period.Annualized net charge-offs were 1.3% of average loans outstanding, compared to annualized net recoveries of 0.1% in the prior year period.The total loan portfolio grew 30.4% to $1.8 billion during the 12-month period ending September 30, 2022.Total assets were $1.9 billion, total capital was $293.2 million, and the Tier 1 leverage ratio was 16.2% at September 30, 2022. Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “The third quarter was highlighted by moderating loan growth that produced net income of $18 million on net interest income that was 22% higher than the prior year. Loan losses, which were historically low in last year’s third quarter, continued to normalize, rising consistent with our historical seasonality but also likely reflecting the pressures of the inflationary environment. Given rapidly increasing deposit costs, we increased interest rates on new loans and expect additional adjustments consistent with actions by the Federal Reserve. Our focus remains on serving our customers with the optimal balance of high tech and high touch so we can deliver superior financial performance.” Recreation Lending Segment The Bank’s recreation loan portfolio grew 24.9% to $1.2 billion as of September 30, 2022, compared to $938.7 million at September 30, 2021.Net interest income was $32.5 million compared to $27.8 million in the prior year period.Recreation loans were 66.6% of loan...