2022 Fourth Quarter Highlights
- Net income of
$19.7 million , compared to net income of$19.0 million in the prior year quarter. - Net interest income of
$44.4 million with a net interest margin of 9.2%, compared to$37.3 million and 9.9% in the prior year quarter. - Provision for loan losses was
$8.4 million , compared to$1.6 million in the prior year quarter. - Annualized net charge-offs were 1.7% of average loans outstanding, compared to 0.3% in the prior year quarter.
2022 Full-Year Highlights
- Record net income of
$74.6 million , compared to net income of$70.0 million in 2021. - Net interest income of
$164.6 million with a net interest margin of 9.4%, compared to$136.8 million and 10.0% in 2021. - ROA and ROE were 4.2% and 26.5%, respectively, for the year ended
December 31, 2022 , compared to 5.0% and 29.1% for the prior year. - Provision for loan losses was
$24.7 million , compared to$3.7 million in 2021. - Net charge-offs were 1.0% of average loans outstanding, compared to 1.2% in 2021.
- The total loan portfolio grew 28.8% to
$1.8 billion during the year. - Total assets were
$2.0 billion , total capital was$306.7 million , and the Tier 1 leverage ratio was 16.2% atDecember 31, 2022 .
Recreation Lending Segment
- The Bank’s recreation loan portfolio grew 22.6% to
$1.2 billion as ofDecember 31, 2022 , compared to$965.3 million atDecember 31, 2021 . - Net interest income was
$33.4 million , compared to$28.7 million in the prior year quarter. - Recreation loans were 64.9% of loans receivable as of
December 31, 2022 , compared to 68.2% atDecember 31, 2021 . - The quarterly provision for recreation loan losses was
$7.3 million , compared to$2.1 million in the prior year quarter. - Annualized net charge-offs were 2.4% of average recreation loans outstanding, compared to 1.0% in the prior year quarter.
Home Improvement Lending Segment
- The Bank’s home improvement loan portfolio grew 43.4% to
$626.4 million as ofDecember 31, 2022 , compared to$436.9 million atDecember 31, 2021 . - Net interest income was
$10.5 million , compared to$8.5 million in the prior year quarter. - Home improvement loans were 34.4% of loans receivable as of
December 31, 2022 , compared to 30.9% atDecember 31, 2021 . - The provision for home improvement loan losses was
$2.7 million , compared to$1.2 million in the prior year quarter. - Annualized net charge-offs were 1.1% of average home improvement loans outstanding, compared to annualized net charge-offs of 0.4% in the prior year quarter.
Current Expected Credit Loss Adoption on
On
Series F Preferred Stock Dividend
On
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STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||
For the Three Months Ended | For the Years Ended | ||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||
Total interest income | $ | 51,774 | $ | 41,436 | $ | 187,272 | $ | 154,310 | |||||||
Total interest expense | 7,361 | 4,178 | 22,667 | 17,544 | |||||||||||
Net interest income | 44,413 | 37,258 | 164,605 | 136,766 | |||||||||||
Provision for loan losses | 8,409 | 1,578 | 24,709 | 3,746 | |||||||||||
Net interest income after provision for loan losses | 36,004 | 35,680 | 139,896 | 133,020 | |||||||||||
Other income (loss) | |||||||||||||||
Write-downs of loan collateral in process of foreclosure and other assets | (49 | ) | (140 | ) | (582 | ) | (2,990 | ) | |||||||
Other non-interest income | 280 | 386 | 1,237 | 1,144 | |||||||||||
Total other income (loss) | 231 | 246 | 655 | (1,846 | ) | ||||||||||
Non-interest expense | |||||||||||||||
Salaries and benefits | 4,430 | 3,838 | 15,086 | 12,237 | |||||||||||
Loan servicing | 2,571 | 2,756 | 10,843 | 10,692 | |||||||||||
Collection costs | 1,445 | 1,305 | 5,385 | 4,775 | |||||||||||
Regulatory fees | 797 | 489 | 2,418 | 1,872 | |||||||||||
Professional fees | 446 | 366 | 1,754 | 1,695 | |||||||||||
Occupancy and equipment | 209 | 217 | 793 | 789 | |||||||||||
Other | 1,154 | 872 | 4,248 | 3,552 | |||||||||||
Total non-interest expense | 11,052 | 9,843 | 40,527 | 35,612 | |||||||||||
Income before income taxes | 25,183 | 26,083 | 100,024 | 95,562 | |||||||||||
Provision for income taxes | 5,460 | 7,071 | 25,386 | 25,563 | |||||||||||
Net income | $ | 19,723 | $ | 19,012 | $ | 74,638 | $ | 69,999 |
BALANCE SHEETS
(UNAUDITED)
(In thousands) | |||||||
Assets | |||||||
Cash and federal funds sold | $ | 74,078 | $ | 61,402 | |||
Investment securities, available-for-sale | 48,492 | 44,772 | |||||
Loans, inclusive of net deferred loan acquisition costs | 1,822,737 | 1,415,415 | |||||
Allowance for loan losses | (61,630 | ) | (53,384 | ) | |||
Loans, net | 1,761,107 | 1,362,031 | |||||
Loan collateral in process of foreclosure | 10,381 | 21,438 | |||||
Fixed assets and right-of-use lease assets, net | 6,600 | 4,230 | |||||
Deferred tax assets | 9,241 | 7,576 | |||||
Accrued interest receivable and other assets | 40,928 | 37,786 | |||||
Total assets | $ | 1,950,827 | $ | 1,539,235 | |||
Liabilities and Shareholders’ Equity | |||||||
Liabilities | |||||||
Deposits and other funds borrowed | $ | 1,607,110 | $ | 1,250,880 | |||
Accrued interest payable | 2,422 | 1,228 | |||||
Income tax payable | 23,165 | 16,104 | |||||
Other liabilities | 10,613 | 7,670 | |||||
Due to affiliates | 862 | 906 | |||||
Total liabilities | 1,644,172 | 1,276,788 | |||||
Total shareholders’ equity | 306,655 | 262,447 | |||||
Total liabilities and shareholders’ equity | $ | 1,950,827 | $ | 1,539,235 |
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