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Medallion Financial Corp. Reports 2020 Fourth Quarter and Full Year 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 fourth quarter and full year results.\n\n2020 Fourth Quarter Highlights\n\n\nNet income was $6.5 million, or $0.26 per share, compared to net loss of $0.5 million, or $0.02 per share, in the prior year quarter.\n\n\nNet interest income was $28.5 million in the quarter, primarily reflecting the contribution of the consumer lending segments, a 7.1% increase from $26.6 million in the prior year quarter.\n\n\nNet interest margin was 8.89% in the quarter, the highest in 13 years.\n\n\nNet income from the Company’s consumer and commercial lending segments increased 97% to $14.2 million in the quarter, compared to $7.2 million in the prior year quarter.\n\n\nMedallion Bank’s Tier 1 leverage ratio at quarter-end was 16.93%.\n\n\nTotal assets were $1.6 billion as of December 31, 2020.\n\n\n2020 Full Year Highlights\n\n\n2020 total net loss was $34.8 million compared to a net loss of $1.8 million in 2019.\n\n\n2020 net interest margin was 8.65% compared to 8.64% in 2019.\n\n\n2020 net income from Medallion’s consumer and commercial segments was $41.6 million compared to $31.9 million in 2019, a 30% increase.\n\n\nThe recreation and home improvement net loan portfolios grew 10% and 34% from December 31, 2019.\n\n\nConsumer originations were $488.0 million for the year, up 10% from $443.5 million in 2019.\n\n\nIn 2020, the Company deemed the medallion portfolio to be impaired as a result of the impact of COVID-19 on our borrowers, resulting in all loans being placed on nonaccrual status and adjusted down to collateral value.\n\n\nNet medallion loans dropped 88% from $105.0 million to $12.7 million at year end.\n\n\nAndrew Murstein, President of Medallion, stated, “We are pleased with how the Company navigated through the pandemic, as we took the appropriate steps to largely put the medallion portfolio behind us. Medallion Bank as a standalone recorded $14.3 million of net income in the fourth quarter, and $48.0 million in 2020 net income from their recreation and home improvement lending segments, both the highest in the Bank’s history. We stayed the course of tightening our credit and underwriting criteria durin...