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Medallion Financial Corp. Reports 2020 Second 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 second quarter results.\n\n\n2020 Second Quarter Highlights\n\n\n\nNet loss was $4.0 million, or $0.16 per share, compared to a net loss of $7.5 million, or $0.31 per share, in the prior year period, and a net loss of $13.6 million, or $0.56 per share, in the 2020 first quarter.\n\n\nProvision for loan losses was $16.9 million, compared to $15.1 million in the prior year quarter and $16.5 million in the 2020 first quarter.\n\n\nPotential concerns about the long-term impact of COVID-19 on our lending businesses caused us to increase loan loss provisions in both the consumer and medallion lending segments by an extra $6.8 million in the quarter.\n\n\nNet interest income was $26.8 million in the quarter, primarily reflecting the contribution of the consumer lending segments, a 16% increase from $23.2 million in the 2019 quarter.\n\n\nNet interest margin was 8.23% in the quarter, compared to 8.46% a year ago.\n\n\nNet income from Medallion’s consumer and commercial lending segments totaled $9.0 million in the quarter, compared to $7.7 million in the 2019 quarter.\n\n\nConsumer loan originations were $150.9 million in the quarter, an all-time high, up 11% from $136.2 million in the 2019 quarter and up 46% from $103.1 million in the 2020 first quarter.\n\n\nThe consumer loan portfolio reached an all-time high of $1.0 billion in net outstandings at June 30, 2020.\n\n\nMedallion Bank’s Tier 1 leverage ratio at quarter-end was 16.96%.\n\n\nTotal assets were $1.7 billion as of June 30, 2020.\n\n\n\nAndrew Murstein, President of Medallion, stated, “The Company saw strong demand in the second quarter for its consumer lending products, resulting in its net recreation and home improvement loan portfolios growing 16% and 35% over the prior year quarter. Applications grew significantly in the quarter despite Medallion Bank raising its credit standards, which allowed it to maintain healthy loan origination volumes, and ultimately grow its consumer loan portfolio to $1.0 billion. The potential impact of the COVID-19 pandemic on our consumer and medallion lending segments caused the Company to increase its loan loss pr...