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Medallion Financial Corp. Reports 2020 First Quarter Results
NEW YORK--(BUSINESS WIRE)-- Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a finance company that originates and services loans in
About this update from Medallion Financial Corp.
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nMedallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a finance company that originates and services loans in various consumer and commercial niche industries, announced today its 2020 first quarter results.\n\n\n2020 First Quarter Highlights\n\n\n\nNet loss was $13.6 million, or $0.56 per share, compared to a net income of $1.2 million, or $0.05 per share, in the prior year period\n\n\nCOVID-19-related loan loss provisions, non-cash NYC taxi medallion value write-downs, and a non-cash write-off of a legacy non-core portfolio company produced the net loss for the quarter\n\n\nNet interest income was $26.5 million, primarily reflecting the consumer lending segments, a 19% increase from the 2019 first quarter\n\n\nNet interest margin was 8.80% in the 2020 first quarter, compared to 8.56% a year ago\n\n\nNet cash provided by operating activities was $18.7 million, compared to $11.1 million in the 2019 first quarter\n\n\nThe recreation and home improvement loan portfolios grew 20% and 32% in the quarter from a year ago\n\n\nConsumer originations were $103.1 million for the first quarter, up from $90.3 million in the prior year period\n\n\nMedallion Bank’s Tier 1 leverage ratio at quarter-end was 18.78%\n\n\nTotal assets were $1.53 billion as of March 31, 2020\n\n\n\nAndrew Murstein, President of Medallion, stated, “The Company continued its positive momentum from last year into 2020, and had a strong start to the year, but the COVID-19 pandemic and related economic impact, among other factors, led us to increase reserves. Transaction activity during the quarter indicated the need to lower medallion collateral values in New York City, which reduced earnings by over $10 million. While it is too early to predict how our consumer portfolio will be affected by the current economic disruption, we structured the Bank with resilience in mind and remain optimistic that the Bank is well-positioned to respond to opportunities to grow market share, just as it did in the last recession. While there are no assurances for the future, it is comforting to note that during the last recession the Bank’s consumer loans performed well and the Bank was profitable in every single quarter.”\n\n\nMr. Murstein continued, “During the quarter, we continued our strategy of growing our consumer and commercial segme...