SALT LAKE CITY, October 28, 2021 (GLOBE NEWSWIRE) – Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank that provides consumer loans for the purchase of recreational vehicles, boats and improvements, as well as loan origination services to fintech partners, today announced its third quarter 2021 results. The bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).
Highlights for the third quarter of 2021
- Record net income of $ 19.7 million, compared to a net loss of $ 13.2 million for the prior year period.
- Net interest income of $ 35.3 million compared to $ 31.1 million for the prior year period.
- The loan loss benefit was $ 0.2 million, due to lower borrower defaults and recoveries on prior period loan losses, compared to a quarterly allowance of 35 , $ 3 million in the prior year period.
- Annualized net write-offs represented 1.6% of average loan outstandings, up from 5.1% the previous year.
- Recreational and delinquent home improvement loans represented 2.0% of the total recreational and home improvement loan portfolios combined.
- Leisure and home improvement loan portfolios increased by 15.9% and 26.4% respectively from September 30, 2020.
- Total assets were $ 1.5 billion, total capital was $ 257.7 million, and the Tier 1 leverage ratio was 18.2% as of September 30, 2021.
Donald Poulton, President and CEO of Medallion Bank, said: “We again achieved record quarterly net income, reflecting the continued strong performance of our consumer credit business. Loan origination growth remained strong and we continued to benefit from historically low loan loss provisions. The Bank is fortunate to operate in markets that have experienced surges in demand during the COVID pandemic. This has enabled us to deliver four consecutive quarters of significant net results, which is reflected in our return on assets to date of 5.0% and return on equity of 28.9%. We continue to execute our strategy and are optimistic about future growth and performance. “
Recreational loan segment
- The Bank’s recreational loan portfolio increased 15.9% to $ 938.7 million as of September 30, 2021, compared to $ 809.9 million as of September 30, 2020.
- Net interest income was $ 27.8 million compared to $ 25.4 million for the prior year period.
- Leisure loans represent 69.5% of loans receivable as of September 30, 2021, compared to 67.1% as of September 30, 2020.
- The allowance for losses on recreational loans was $ 1.0 million compared to $ 1.8 million for the prior year period.
- Leisure loan delinquencies of 90 days or more were $ 3.1 million, or 0.3% of gross leisure loans, as of September 30, 2021, compared to $ 4.1 million, or 0.5% , as of September 30, 2020.
Home Improvement Loans Segment
- The Bank’s home renovation loan portfolio increased 26.4% to $ 399.0 million as of September 30, 2021, compared to $ 315.6 million as of September 30, 2020.
- Net interest income was $ 7.7 million compared to $ 6.2 million for the prior year period.
- Renovation loans represent 29.5% of loans receivable as of September 30, 2021, compared to 26.2% as of September 30, 2020.
- The allowance for home improvement loan losses was $ 0.4 million compared to $ 0.7 million for the prior year period.
- Defaults on home improvement loans of 90 days or more were past due by $ 161,000, or 0.04% of gross home improvement loans as of September 30, 2021, compared to $ 103,000, or 0.03%, as of September 30, 2021. September 2020.
Medallion Loans Segment
- Medallion loans represented 0.9% of the Bank’s total loans receivable as of September 30, 2021.
- The total gross exposure of the Medallion Loans segment (which includes loans in foreclosure and remarketed assets) was $ 34.7 million, or 2.3% of total assets, as of September 30, 2021.
Unless otherwise indicated, loan portfolios are presented net of deferred loan acquisition costs.
Series F Preferred Share Dividend
On October 26, 2021, the Bank’s Board of Directors declared a quarterly cash dividend of $ 0.50 per share on the Perpetual Floating Fixed Rate Preferred Shares, Series F, which trade on the Nasdaq Capital Market under the ticker symbol “MBNKP.” The dividend is payable on January 3, 2022 to holders of record at the close of business on December 15, 2021.
About Medallion Bank
Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats and home renovations, and providing loan origination services to fintech partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their clients across the United States. Medallion Bank is an FDIC-insured Utah-chartered industrial bank headquartered in Salt Lake City and a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).
For more information visit www.medallionbank.com
Please note that this press release contains forward-looking statements that involve risks and uncertainties regarding business performance, cash flow, costs, sales, net investment income, earnings, returns and growth. These statements are often, but not always, made using words or phrases such as “believe”, “continue to”, “expect”, “should”, “strategy” and “will” or the negative version of those words or other comparable words or expressions of a future or prospective nature. These statements relate to our future earnings, returns, capital levels, growth prospects, quality of assets and the pursuit and execution of our strategy. Medallion Bank’s actual results may differ materially from the results discussed in these forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the sections “Caution Regarding Forward-Looking Statements” and “Risk Factors” included in Medallion Bank’s Form 10-K for the year. ended December 31, 2020, and in its quarterly reports on Form 10-Q, filed with the FDIC. Medallion Bank Forms 10-K, 10-Q and other FDIC documents are available in the Investor Relations section of the Medallion Bank website. In addition, the financial results of Medallion Bank for any period are not necessarily representative of the results of Medallion Financial Corp. for the same period.
Company details :
STATE OF OPERATIONS
|For the three months ended September 30,|
|Total interest income||$||39,524||$||36,565|
|Total interest charges||4 189||5 454|
|Net interest income||35 335||31 111|
|Allowance (benefit) for loan losses||(196||)||35,299|
|Net interest income (loss) after allowance for loan losses||35,531||(4,188||)|
|Other income (losses)|
|Write-offs of loan guarantees in foreclosure and other assets||(298||)||(5,574||)|
|Other non-interest income||222||109|
|Total other losses||(76||)||(5,465||)|
|Salaries and Benefits||2,797||2,535|
|Collection costs||1335||1 170|
|Occupancy and equipment||199||234|
|Total non-interest charges||8 643||8,404|
|Profit (loss) before taxes||26 812||(18,057||)|
|Provision (benefit) for income taxes||7 116||(4 859||)|
|Net income (loss)||$||19 696||$||(13,198||)|
|(In thousands)||September 30, 2021||December 31, 2020||September 30, 2020|
|Cash and federal funds sold||$||56,088||$||58,977||$||39,884|
|Investment securities, available for sale||47,511||46,792||45,991|
|Borrowings, including acquisition costs of net deferred borrowings||1,351,240||1,167,748||1,206,780|
|Allowance for loan losses||(52,954||)||(65,557||)||(98,446||)|
|Loan collateral during foreclosure||28,069||35,557||25,900|
|Fixed assets and rights of use, net||3 964||3 418||3 462|
|Deferred tax assets||7 632||11 839||20,470|
|Due by affiliates||–||3 298||–|
|Income tax receivable||–||549||–|
|Accrued interest receivable and other assets||35,291||28,746||35,904|
|Liabilities and equity|
|Deposits and other borrowed funds||$||1,196,508||$||1,065,398||$||1,057,499|
|Accrued interest payable||1,562||1,515||1,992|
|Taxes payable on income||9 789||–||2 948|
|Other liabilities||10 689||5,980||9 288|
|Due to affiliates||586||–||996|
|Total responsibilities||1 219 134||1,072,893||1,072,723|
|Total liabilities and equity||$||1,476,841||$||1,291,367||$||1,279,945|