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Medallion Bank Reports 2023 First Quarter Results and Declares Series F Preferred Stock Dividend
SALT LAKE CITY, April 28, 2023 (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, April 28, 2023 (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 quarter ended March 31, 2023. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN). 2023 First Quarter Highlights Record quarterly net income of $21.4 million, compared to $18.8 million in the prior year quarter.Net interest income of $44.3 million with a net interest margin of 9.05%, compared to $37.2 million and 9.66% in the prior year quarter.Provision for credit losses was $3.9 million, compared to a $2.1 million provision for loan losses in the prior year quarter.Annualized net charge-offs were 2.5% of average loans outstanding, compared to 0.7% in the prior year quarter.Annualized ROA and ROE were 4.36% and 28.38%, respectively, compared to 4.82% and 28.55% for the prior year period.The total loan portfolio grew 26.4% from March 31, 2022 to $1.9 billion as of March 31, 2023.Total assets were $2.1 billion and the Tier 1 leverage ratio was 16.43% at March 31, 2023. Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “We are happy with the start to the year and continue to position ourselves for the future. In the first quarter, recurring loan losses in our home improvement portfolio fell from fourth quarter levels, and a large portion of our recreation portfolio charge-offs were non-recurring and related to our adoption of CECL. We also had material medallion loan settlements and recoveries this quarter that reduced provision and boosted earnings. Medallion loan recoveries are difficult to predict, and we expect variability for the rest of 2023. Last but not least, given the recent banking environment, we are fortunate that our deposits are concentrated in brokered deposits that have no right of voluntarily withdrawals. Our deposits are also acquired to fund our loan growth, which differs from a typical bank that acquires assets to use its available deposits. A consequence of this is a relatively small investment portfolio and related unrealized gains or losses. We believe our business model to be resilient under a wide variety of conditions.” Recreation L...