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Medallion Bank Reports 2023 Second Quarter Results and Declares Series F Preferred Stock Dividend
SALT LAKE CITY, July 27, 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, July 27, 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 June 30, 2023. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN). 2023 Second Quarter Highlights Quarterly net income of $19.3 million, compared to $17.9 million in the prior year quarter.Net interest income of $47.0 million with a net interest margin of 8.9%, compared to $40.0 million and 9.5% in the prior year quarter.Total provision for credit losses was $8.9 million, compared to $6.0 million in the prior year quarter.Annualized net charge-offs were 0.6% of average loans outstanding, compared to 0.2% in the prior year quarter.Annualized ROA and ROE were 3.66% and 24.38%, respectively, compared to 4.20% and 25.86% for the prior year period.The total loan portfolio grew 26.0% from June 30, 2022 to $2.064 billion as of June 30, 2023.Total assets were $2.220 billion and the Tier 1 leverage ratio was 16.03% at June 30, 2023. Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “Quarterly earnings surpassed our own expectations, largely due to strong collection activity on our legacy medallion portfolio and our borrowers’ ongoing resilience. Loan demand surged in the second quarter despite increasingly restrictive underwriting, reaching expected peak quarterly originations for the year. The banking environment also settled during the second quarter, and our access to deposits and contingent liquidity remained unhindered throughout. We believe we are positioned well given an uncertain economic outlook.” Recreation Lending Segment The Bank’s recreation loan portfolio grew 21.2% to $1.331 billion as of June 30, 2023, compared to $1.099 billion at June 30, 2022.Net interest income was $34.4 million, compared to $30.3 million in the prior year quarter.Recreation loans were 64.5% of loans receivable as of June 30, 2023, compared to 67.1% at June 30, 2022.Annualized net charge-offs were 1.87% of average recreation loans outstanding, compared to 0.96% in the prior year quarter.The provision for recreation credit losses was $10.1 million, compared to a $6.7...