Business
Medallion Financial Corp. Reports Revised 2019 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, initially reported results for the quarter and year ended December 31, 2019 on February 18, 2020. Just prior to the anticipated filing of the Company’s 2019 audited financial statements, the Company reviewed three borrower relationships, representing 61 medallion loans with $27.5 million aggregate principal amount, including consideration of additional information identified since the Company initially reported results. These loans were categorized as performing loans at the time the Company initially reported results, and therefore had a general allowance for credit losses reserve allocation of $5.6 million, as of year-end. The Company’s financial results as of, and for the periods ended, December 31, 2019 were reported on that basis at the time the Company initially reported results. However, upon consideration of the additional information about these loans, the Company determined to categorize these loans as impaired loans and classified these loans as troubled debt restructurings (“TDR”). The Company also applied the same impairment calculation methodology to 18 medallion loans already classified as TDRs. The net effect of these adjustments was an increase in the total TDR amount of $27.5 million and an additional $4.3 million provision for credit losses, resulting in a reduction of after tax net income of $3.2 million for the quarter and year ended December 31, 2019. The remainder of this release and the tables at the end of this release have been updated to reflect these changes.\n\n\n2019 Fourth Quarter Highlights\n\n\n\nNet loss was $0.5 million, or $0.02 per share, compared to net income of $9.2 million, or $0.38 per share, in the prior year period, which included a gain of $25.3 million as a result of the Company successfully deconsolidating Trust III in the 2018 fourth quarter\n\n\nNet interest income was $26.6 million, primarily reflective of the contributions of the consumer lending segments\n\n\nNet interest margin was 8.83%, up from 8.07% in the year ago quarter, reflecting the greater contribution of the higher yielding consumer and commercial segments\n\n\nNet interest margins for the recreation and home improve...