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Medallion Financial Corp. Reports 2020 Third 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 third quarter results.\n\n2020 Third Quarter Highlights\n\n\nNet loss was $23.6 million, or $0.97 per share, compared to net income of $5.0 million, or $0.20 per share, in the prior year quarter.\n\n\nThe medallion segment lost nearly $36 million in the quarter, as the portfolio was deemed to be impaired as a result of the impact of COVID-19 on our borrowers. Additionally, all loans have been placed on nonaccrual status and adjusted down to collateral value.\n\n\nThe Company’s net medallion loan portfolio, exclusive of loan collateral in the process of foreclosure, is now $33.5 million at the end of the third quarter compared to $112.0 million a year ago.\n\n\nProvision for loan losses was $39.7 million, compared to $8.3 million in 2019.\n\n\nNet interest income was $29.1 million in the quarter, primarily reflecting the contribution of the consumer lending segments, a 15% increase from $25.4 million in the 2019 quarter.\n\n\nNet interest margin was 8.72% in the quarter, compared to 8.71% a year ago.\n\n\nNet income from the Company’s consumer and commercial lending segments increased 41% to a record $14.1 million in the quarter, compared to $10.0 million in the 2019 quarter.\n\n\nThe recreation and home improvement net loan portfolios grew 12% and 36% from September 30, 2019.\n\n\nMedallion Bank’s Tier 1 leverage ratio at quarter-end was 15.47%.\n\n\nTotal assets were $1.6 billion as of September 30, 2020.\n\n\nAlvin Murstein, Chairman and CEO of Medallion, stated, “The Company took the necessary steps to effectively put the taxi medallion loan portfolio behind us. We continue to focus on our collection and recovery efforts, while closely monitoring values and any legislative proposals that would finally support the industry. While there can be no assurance that our efforts will continue, we in fact, subsequent to quarter end, received a $3.8 million payment from a large medallion borrower which will reduce their corresponding loan reserves. The results of this payment will be reflected in the fourth quarter results.”\n\nAndrew Murstein, President continued, “The momentum we saw in the second quarter...