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 ofMarch 31, 2024 . - Total assets were
$2.3 billion and the Tier 1 leverage ratio was 16.43% atMarch 31, 2024 .
Recreation Lending Segment
- The Bank’s recreation loan portfolio grew 13% to
$1.365 billion as ofMarch 31, 2024 , compared to$1.213 billion atMarch 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% atMarch 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 ofMarch 31, 2024 , compared to$669.6 million atMarch 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% atMarch 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
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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 “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
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STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
For the Three Months Ended | |||||||
(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 |
BALANCE SHEETS (UNAUDITED) | |||||||||||
(In thousands) | |||||||||||
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 |
Source:
2024 GlobeNewswire, Inc., source