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Medallion Bank Reports Revised 2019 Fourth Quarter and Full Year Results
SALT LAKE CITY--(BUSINESS WIRE)-- Medallion Bank (Nasdaq: MBNKP, “the Bank” or the “Company”) initially reported results for the quarter and year ended
About this update from Medallion Financial Corp.
[{"type":"text","content":" SALT LAKE CITY--(BUSINESS WIRE)--\nMedallion Bank (Nasdaq: MBNKP, “the Bank” or the “Company”) initially reported results for the quarter and year ended December 31, 2019 on January 30, 2020. Recently, and just prior to the filing of the Bank’s 2019 audited financial statements, additional information was identified about three borrower relationships that represented 43 medallion loans aggregating $24.1 million. These loans were categorized as performing, and therefore had a general allowance for credit losses allocation of $4.9 million as of year-end. The Bank’s financial results as of and for the periods ended December 31, 2019 were initially reported on that basis. However, upon consideration of the additional information about these loans, the Bank determined to categorize these loans as impaired loans and classified these loans as troubled debt restructurings (“TDR”). While calculating the impairment amount, the Bank also determined that 13 medallion loans already classified as TDRs should be treated similarly. The net effect of these adjustments was an additional $3.4 million provision for credit losses for the periods ended December 31, 2019, and an increase in the total TDR amount of $24.1 million. Additional information on 2019 results and information relating to COVID-19 will be in the 2019 Form 10-K, which the Bank expects to file later today.\n\n\nThe remainder of this release and the tables at the end of this release have been updated to reflect these events.\n\n\n2019 Fourth Quarter Highlights\n\n\n\nNet income was $6.7 million, compared to $2.4 million in the 2018 quarter\n\n\nNet interest income was $27.7 million, compared to $24.4 million in the prior year period\n\n\nProvision for loan losses was $9.8 million, compared to $11.2 million in 2018\n\n\nNet charge-offs were 3.19% of average loans outstanding, compared to 6.90% in the 2018 quarter\n\n\nTotal assets were $1.20 billion as of December 31, 2019\n\n\nThe tier 1 leverage ratio was 19.35% as of December 31, 2019\n\n\n\n2019 Full Year Highlights\n\n\n\nNet income was $20.4 million, up from $5.7 million in the prior year\n\n\nReturn on average assets was 1.85%, compared to 0.54% in 2018\n\n\nProvision for loan losses was $42.5 million, compared to $50.7 million in the prior year\n\n\nNet charge-offs were 4.30% of average loans outstanding, compared to 5.60% ...