• Medallion Bank Reports 2024 First Quarter Results and Declares Series F Preferred Stock Dividend

    来源: Nasdaq GlobeNewswire / 30 4月 2024 15:05:44   America/Chicago

    SALT LAKE CITY, April 30, 2024 (GLOBE NEWSWIRE) -- 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 Relations
    212-328-2176
    InvestorRelations@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 BANK
    BALANCE 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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