Medallion Bank Reports 2024 First Quarter Results and Declares Series F Preferred Stock Dividend
30 Abril 2024 - 5:05PM
Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank
providing consumer loans for the purchase of recreational vehicles,
boats, and home improvements, along with loan origination services
to fintech strategic partners, announced today its results for the
quarter ended March 31, 2024. The Bank is a wholly owned subsidiary
of Medallion Financial Corp. (Nasdaq: MFIN).
2024 First Quarter Highlights
- Net income of $14.5 million, compared to $21.4 million in the
prior year quarter.
- Net interest income of $48.2 million with a net interest margin
of 8.59%, compared to $44.3 million and 9.05% in the prior year
quarter.
- Total provision for credit losses was $17.0 million, compared
to $3.9 million in the prior year quarter. Total provision for
credit losses included $0.9 million of net taxi medallion
recoveries, compared to $7.0 million of net taxi medallion
recoveries in the prior year quarter.
- Annualized net charge-offs were 3.38% of average loans
outstanding, compared to 2.49% in the prior year quarter.
- Annualized ROA and ROE were 2.59% and 16.47%, respectively,
compared to 4.36% and 28.38% for the prior year period.
- The total loan portfolio grew 12% from March 31, 2023 to $2.1
billion as of March 31, 2024.
- Total assets were $2.3 billion and the Tier 1 leverage ratio
was 16.43% at March 31, 2024.
Donald Poulton, President and Chief Executive Officer of
Medallion Bank, stated, “We continue to be pleased with our
earnings, growth and credit quality. Net interest income growth of
9% over the prior year quarter followed from our asset growth. Loan
losses reflected the seasonality of our consumer lending business,
starting relatively high early in the quarter and falling late in
the quarter as delinquency declined from the December peak. The
provision for credit losses, which was the major distinction
between the 2023 and 2024 first quarters, was affected by the
absence of medallion loan recoveries, and the higher seasonal loan
losses. Without the significant benefits from taxi medallion
recoveries, our ROA and ROE were lower than the prior year but
remained a healthy 2.6% and 16.5%, respectively. We maintained our
relatively tight credit standards, in part as a response to the
effects of lifetime expected loss reserving. Our focus continues to
be prudent growth, credit risk and balance sheet management.”
Recreation Lending Segment
- The Bank’s recreation loan portfolio grew 13% to $1.365 billion
as of March 31, 2024, compared to $1.213 billion at March 31,
2023.
- Net interest income was $35.6 million, compared to $32.8
million in the prior year quarter.
- Recreation loans were 64% of loans receivable as of March 31,
2024, essentially unchanged from 64% at March 31, 2023.
- Annualized net charge-offs were 4.36% of average recreation
loans outstanding, compared to 3.33% in the prior year
quarter.
- The provision for credit losses was $17.0 million, compared to
$7.8 million in the prior year quarter.
Home Improvement Lending Segment
- The Bank’s home improvement loan portfolio grew 12% to $752.3
million as of March 31, 2024, compared to $669.6 million at March
31, 2023.
- Net interest income was $12.4 million, compared to $10.8
million in the prior year quarter.
- Home improvement loans were 36% of loans receivable as of March
31, 2024, essentially unchanged from 36% at March 31, 2023.
- Annualized net charge-offs were 2.12% of average home
improvement loans outstanding, compared to 0.80% in the prior year
quarter.
- The provision for credit losses was $0.9 million, compared to
$3.1 million in the prior year quarter.
Series F Preferred Stock Dividend
On April 25, 2024, the Bank’s Board of Directors declared a
quarterly cash dividend of $0.50 per share on the Bank’s
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock,
Series F, which trades on the Nasdaq Capital Market under the
ticker symbol “MBNKP.” The dividend is payable on July 1, 2024, to
holders of record at the close of business on June 15, 2024.
About Medallion Bank
Medallion Bank specializes in providing consumer loans for the
purchase of recreational vehicles, boats, and home improvements,
along with loan origination services to fintech strategic partners.
The Bank works directly with thousands of dealers, contractors and
financial service providers serving their customers throughout the
United States. Medallion Bank is a Utah-chartered, FDIC-insured
industrial bank headquartered in Salt Lake City and is 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 relating to
business performance, cash flow, costs, sales, net investment
income, earnings, returns and growth. These statements are often,
but not always, made through the use of words or phrases such as
“continues” or the negative version of this word or other
comparable words or phrases of a future or forward-looking nature.
These statements may relate to our future earnings, returns,
capital levels, sources of funding, growth prospects, asset quality
and pursuit and execution of our strategy. Medallion Bank’s actual
results may differ significantly from the results discussed in such
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 captions “Cautionary Note Regarding
Forward-Looking Statements” and “Risk Factors” included in
Medallion Bank’s Form 10-K for the year ended December 31, 2023,
and in its Quarterly Reports on Form 10-Q, filed with the FDIC.
Medallion Bank’s Form 10-K, Form 10-Qs and other FDIC filings are
available in the Investor Relations section of Medallion Bank’s
website. Medallion Bank’s financial results for any period are not
necessarily indicative of Medallion Financial Corp.’s results for
the same period.
Company Contact:Investor
Relations212-328-2176InvestorRelations@medallion.com
|
MEDALLION BANK STATEMENTS OF
OPERATIONS (UNAUDITED) |
|
|
For the Three Months Ended March 31, |
(In thousands) |
|
2024 |
|
|
|
2023 |
|
Total interest income |
$ |
62,968 |
|
|
$ |
52,934 |
|
Total interest
expense |
|
14,753 |
|
|
|
8,600 |
|
Net interest
income |
|
48,215 |
|
|
|
44,334 |
|
|
|
|
|
Provision for credit
losses |
|
17,002 |
|
|
|
3,859 |
|
Net interest income
after provision for loan losses |
|
31,213 |
|
|
|
40,475 |
|
|
|
|
|
Other non-interest
income |
|
602 |
|
|
|
32 |
|
|
|
|
|
Non-interest
expense |
|
|
|
Salaries and benefits |
|
4,984 |
|
|
|
4,392 |
|
Loan servicing |
|
2,867 |
|
|
|
2,815 |
|
Collection costs |
|
1,404 |
|
|
|
1,458 |
|
Regulatory fees |
|
977 |
|
|
|
682 |
|
Professional fees |
|
432 |
|
|
|
667 |
|
Information Technology |
|
267 |
|
|
|
231 |
|
Occupancy and equipment |
|
207 |
|
|
|
202 |
|
Other |
|
752 |
|
|
|
870 |
|
Total non-interest
expense |
|
11,890 |
|
|
|
11,317 |
|
|
|
|
|
Income before income
taxes |
|
19,925 |
|
|
|
29,190 |
|
Provision for income
taxes |
|
5,445 |
|
|
|
7,765 |
|
|
|
|
|
Net
income |
$ |
14,480 |
|
|
$ |
21,425 |
|
Less: Preferred stock
dividends |
|
1,512 |
|
|
|
1,512 |
|
Net income
attributable to common shareholder |
$ |
12,968 |
|
|
$ |
19,913 |
|
|
MEDALLION BANKBALANCE
SHEETS(UNAUDITED) |
|
(In thousands) |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
Assets |
|
|
|
|
|
Cash and federal funds sold |
$ |
136,705 |
|
|
$ |
110,043 |
|
|
$ |
113,257 |
|
Investment securities, available-for-sale |
|
53,038 |
|
|
|
54,282 |
|
|
|
48,529 |
|
Loans, inclusive of net deferred loan acquisition fees and
costs |
|
2,121,180 |
|
|
|
2,100,338 |
|
|
|
1,887,627 |
|
Allowance for losses |
|
(78,648 |
) |
|
|
(79,283 |
) |
|
|
(65,661 |
) |
Loans, net |
|
2,042,532 |
|
|
|
2,021,055 |
|
|
|
1,821,966 |
|
|
|
|
|
|
|
Loan collateral in process of foreclosure |
|
3,263 |
|
|
|
4,165 |
|
|
|
9,610 |
|
Fixed assets and right-of-use lease assets, net |
|
8,417 |
|
|
|
8,140 |
|
|
|
6,983 |
|
Deferred tax assets |
|
12,500 |
|
|
|
12,761 |
|
|
|
9,788 |
|
Accrued interest receivable and other assets |
|
50,061 |
|
|
|
51,610 |
|
|
|
48,501 |
|
Total
assets |
$ |
2,306,516 |
|
|
$ |
2,262,056 |
|
|
$ |
2,058,634 |
|
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits and other funds borrowed |
$ |
1,899,061 |
|
|
$ |
1,866,657 |
|
|
$ |
1,695,300 |
|
Accrued interest payable |
|
4,191 |
|
|
|
4,029 |
|
|
|
2,455 |
|
Income tax payable |
|
26,336 |
|
|
|
21,219 |
|
|
|
28,294 |
|
Other liabilities |
|
17,837 |
|
|
|
17,509 |
|
|
|
18,212 |
|
Due to affiliates |
|
481 |
|
|
|
849 |
|
|
|
618 |
|
Total
liabilities |
|
1,947,906 |
|
|
|
1,910,263 |
|
|
|
1,744,879 |
|
|
|
|
|
|
|
Shareholder’s
Equity |
|
|
|
|
|
Series E Preferred stock |
|
26,303 |
|
|
|
26,303 |
|
|
|
26,303 |
|
Series F Preferred stock |
|
42,485 |
|
|
|
42,485 |
|
|
|
42,485 |
|
Common stock |
|
1,000 |
|
|
|
1,000 |
|
|
|
1,000 |
|
Additional paid in capital |
|
77,500 |
|
|
|
77,500 |
|
|
|
77,500 |
|
Accumulated other comprehensive loss, net of tax |
|
(4,680 |
) |
|
|
(4,529 |
) |
|
|
(3,676 |
) |
Retained earnings |
|
216,002 |
|
|
|
209,034 |
|
|
|
170,143 |
|
Total shareholders’
equity |
|
358,610 |
|
|
|
351,793 |
|
|
|
313,755 |
|
Total liabilities and
shareholders’ equity |
$ |
2,306,516 |
|
|
$ |
2,262,056 |
|
|
$ |
2,058,634 |
|
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