2023 Fourth Quarter Highlights
- Net income of
$21.9 million , compared to$19.7 million in the prior year quarter. - Net interest income of
$48.9 million with a net interest margin of 8.62%, compared to$44.4 million and 9.19% in the prior year quarter. - Total provision for credit losses was
$9.7 million , compared to$8.4 million in the prior year quarter. Net medallion loan recoveries were$12.0 million , compared to$1.2 million during the prior year quarter. - Annualized net charge-offs were 1.04% of average loans outstanding, compared to 1.68% in the prior year quarter. Net medallion loan recoveries reduced annualized net charge-offs by 226 basis points, compared to 27 basis points in the prior year quarter.
2023 Full-Year Highlights
- Net income of
$79.9 million , compared to net income of$74.6 million in 2022. - Net interest income of
$188.9 million with a net interest margin of 8.84%, compared to$164.6 million and 9.41% in 2022. - ROA and ROE were 3.74% and 24.57%, respectively, compared to 4.24% and 26.45% for 2022.
- Total provision for credit losses was
$36.5 million , compared to$24.7 million in 2022. Net medallion loan recoveries reduced the total provision for credit losses by$18.1 million , compared to$5.1 million in 2022. - Total net charge-offs were 1.52% of average loans outstanding, compared to 1.01% in 2022. Net medallion loan recoveries reduced total net charge-offs by 91 basis points, compared to 31 basis points in 2022.
- The total loan portfolio grew 15% to
$2.1 billion . - Total assets were
$2.3 billion , total capital was$351.8 million , and the Tier 1 leverage ratio was 16.24% atDecember 31, 2023 .
Recreation Lending Segment
- The Bank’s recreation loan portfolio grew 13% to
$1.336 billion as ofDecember 31, 2023 , compared to$1.184 billion atDecember 31, 2022 . - Net interest income was
$36.2 million , compared to$33.4 million in the prior year quarter. For the year, net interest income was$140.3 million , compared to$124.5 million in 2022. - Recreation loans were 63.6% of loans receivable as of
December 31, 2023 , compared to 64.9% atDecember 31, 2022 . - Annualized net charge-offs were 4.2% of average recreation loans outstanding, compared to 2.4% in the prior year quarter.
- The provision for credit losses was
$14.8 million , compared to$7.3 million in the prior year quarter. For the year, the provision for credit losses was$44.6 million , compared to$22.8 million in 2022.
Home Improvement Lending Segment
- The Bank’s home improvement loan portfolio grew 21% to
$760.6 million as ofDecember 31, 2023 , compared to$626.4 million atDecember 31, 2022 . - Net interest income was
$12.2 million , compared to$10.5 million in the prior year quarter. For the year, net interest income was$46.6 million , compared to$38.9 million in 2022. - Home improvement loans were 36.2% of loans receivable as of
December 31, 2023 , compared to 34.4% atDecember 31, 2022 . - Annualized net charge-offs were 1.7% of average home improvement loans outstanding, compared to 1.1% in the prior year quarter.
- The provision for credit losses was
$6.9 million , compared to$2.7 million in the prior year quarter. For the year, the provision for credit losses was$17.6 million , compared to$7.6 million in 2022.
Series F Preferred Stock Dividend
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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 “remain,” “anticipate” or the negative version of this word or other comparable words or phrases of a future or forward-looking nature, such as “look forward.” 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
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STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
For the Three Months Ended | For the Years Ended | |||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Total interest income | $ | 63,253 | $ | 51,774 | $ | 236,667 | $ | 187,272 | ||||||||
Total interest expense | 14,401 | 7,361 | 47,785 | 22,667 | ||||||||||||
Net interest income | 48,852 | 44,413 | 188,882 | 164,605 | ||||||||||||
Provision for credit losses | 9,717 | 8,409 | 36,457 | 24,709 | ||||||||||||
Net interest income after provision for loan losses | 39,135 | 36,004 | 152,425 | 139,896 | ||||||||||||
Other income (loss) | ||||||||||||||||
Write-downs of loan collateral in process of foreclosure and other assets | (70 | ) | (49 | ) | (373 | ) | (582 | ) | ||||||||
Other non-interest income | 909 | 280 | 2,475 | 1,237 | ||||||||||||
Total other income (loss) | 839 | 231 | 2,102 | 655 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and benefits | 4,997 | 4,430 | 19,001 | 15,086 | ||||||||||||
Loan servicing | 2,903 | 2,571 | 11,626 | 10,843 | ||||||||||||
Collection costs | 1,492 | 1,445 | 5,965 | 5,385 | ||||||||||||
Regulatory fees | 692 | 797 | 3,176 | 2,418 | ||||||||||||
Professional fees | 631 | 446 | 2,243 | 1,754 | ||||||||||||
Occupancy and equipment | 206 | 209 | 830 | 793 | ||||||||||||
Other | 1,099 | 1,154 | 4,555 | 4,248 | ||||||||||||
Total non-interest expense | 12,020 | 11,052 | 47,396 | 40,527 | ||||||||||||
Income before income taxes | 27,954 | 25,183 | 107,131 | 100,024 | ||||||||||||
Provision for income taxes | 6,011 | 5,460 | 27,279 | 25,386 | ||||||||||||
Net income | $ | 21,943 | $ | 19,723 | $ | 79,852 | $ | 74,638 |
BALANCE SHEETS (UNAUDITED) | ||||||||
(In thousands) | ||||||||
Assets | ||||||||
Cash and federal funds sold | $ | 110,043 | $ | 74,078 | ||||
Investment securities, available-for-sale | 54,282 | 48,492 | ||||||
Loans, inclusive of net deferred loan acquisition costs | 2,100,338 | 1,822,737 | ||||||
Allowance for losses | (79,283 | ) | (61,630 | ) | ||||
Loans, net | 2,021,055 | 1,761,107 | ||||||
Loan collateral in process of foreclosure | 4,165 | 10,381 | ||||||
Fixed assets and right-of-use lease assets, net | 8,140 | 6,600 | ||||||
Deferred tax assets | 12,761 | 9,241 | ||||||
Accrued interest receivable and other assets | 51,610 | 40,928 | ||||||
Total assets | $ | 2,262,056 | $ | 1,950,827 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities | ||||||||
Deposits and other funds borrowed | $ | 1,866,657 | $ | 1,607,110 | ||||
Accrued interest payable | 4,029 | 2,422 | ||||||
Income tax payable | 21,219 | 23,165 | ||||||
Other liabilities | 17,509 | 10,614 | ||||||
Due to affiliates | 849 | 861 | ||||||
Total liabilities | 1,910,263 | 1,644,172 | ||||||
Shareholder’s Equity | ||||||||
Series E Preferred stock | 26,303 | 26,303 | ||||||
Series F Preferred stock | 42,485 | 42,485 | ||||||
Common stock | 1,000 | 1,000 | ||||||
Additional paid in capital | 77,500 | 77,500 | ||||||
Accumulated other comprehensive loss, net of tax | (4,529 | ) | (4,183 | ) | ||||
Retained earnings | 209,034 | 163,550 | ||||||
Total shareholders’ equity | 351,793 | 306,655 | ||||||
Total liabilities and shareholders’ equity | $ | 2,262,056 | $ | 1,950,827 |
Source:
2024 GlobeNewswire, Inc., source