Business
Medallion Financial Corp. Reports 2021 Third Quarter Results
NEW YORK, Nov. 01, 2021 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a finance company that originates and
About this update from Medallion Financial Corp.
[{"type":"text","content":"NEW YORK, Nov. 01, 2021 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a finance company that originates and services loans in various consumer and commercial industries, announced today its 2021 third quarter results. 2021 Third Quarter Highlights Net income of $15.9 million, or $0.64 per share, compared to a net loss of $23.6 million, or $0.97 per share, in the prior year quarter.Net interest income grew 17% to $34.1 million from $29.1 million in the prior year quarter.Net interest margin was 9.48%, compared to 8.72% in the prior year quarter.Loan originations increased 43% to $195.8 million, as compared to the prior year quarter. Executive Commentary – Andrew Murstein, President of Medallion “This was in many ways the strongest quarter ever for Medallion. We achieved record performances across the board and are well-positioned to continue our growth moving forward. We are focusing on growing our consumer and commercial lending businesses, where our Bank subsidiary reported return on equity above 30% for the third quarter. In addition, we continue to explore dispositions of our non-core assets at opportunistic times. During the quarter we also successfully sold another tranche of shares in one of our fintech investments, and we are seeking additional investment opportunities in similar companies.” Loan Detail Loan originations were $195.8 million during the quarter, primarily in our recreation and home improvement segments.During the third quarter, net charge-offs remained at near all-time lows and were a net benefit of $0.8 million.Loans 90 days or more past due were 0.29% of loans at September 30, 2021; as compared to 0.22% at June 30, 2021; and 0.57% at December 31, 2020. Business Segment Highlights Consumer Lending Segments We originated $187.1 million of new loans during the 2021 third quarter.Our net consumer loan portfolio was $1.3 billion as of quarter-end, compared to $1.1 billion a year ago.Our net consumer loan portfolio was 94% of total net loans receivable as of quarter end.Net loan portfolio grew 16% for recreation and 26% for home improvement from September 30, 2020.Net interest income grew 15% to $35.9 million for the quarter, compared to $31.0 million in the prior year quarter.The average interest rate on the portfolio was 12.82% at quarter-end, compared to 13.87% a...