Medallion Financial Corp. Reports 2020 Fourth Quarter and Full Year Results
Medallion Financial Corp. (NASDAQ:MFIN) reported its fourth quarter and full year results for 2020, revealing a net income of $6.5 million ($0.26 per share) compared to a net loss of $0.5 million in the same quarter last year. The total net loss for 2020 was $34.8 million, a significant increase from a $1.8 million loss in 2019. Notable highlights include a net interest margin of 8.89%, the highest in 13 years, and a 30% increase in net income from consumer and commercial segments. However, the medallion portfolio experienced an 88% decline, marking a shift in company focus.
- Net income increased to $6.5 million in Q4 2020 from a loss of $0.5 million in Q4 2019.
- Net interest income rose 7.1% to $28.5 million in Q4 2020.
- Net income from consumer and commercial lending segments surged 97% to $14.2 million in Q4 2020.
- Medallion Bank recorded $14.3 million net income in Q4 2020, highest ever.
- Consumer loan delinquencies decreased from 0.64% to 0.50% year-over-year.
- 2020 total net loss of $34.8 million compared to a loss of $1.8 million in 2019.
- Medallion loans dropped 88% from $105 million to $12.7 million year-end.
- Medallion segment loss of $3.6 million in Q4 2020 due to reduced New York City medallion values.
Medallion Financial Corp. (NASDAQ:MFIN, “Medallion” or the “Company”), a finance company that originates and services loans in various consumer and commercial niche industries, announced today its 2020 fourth quarter and full year results.
2020 Fourth Quarter Highlights
-
Net income was
$6.5 million , or$0.26 per share, compared to net loss of$0.5 million , or$0.02 per share, in the prior year quarter. -
Net interest income was
$28.5 million in the quarter, primarily reflecting the contribution of the consumer lending segments, a7.1% increase from$26.6 million in the prior year quarter. -
Net interest margin was
8.89% in the quarter, the highest in 13 years. -
Net income from the Company’s consumer and commercial lending segments increased
97% to$14.2 million in the quarter, compared to$7.2 million in the prior year quarter. -
Medallion Bank’s Tier 1 leverage ratio at quarter-end was
16.93% . -
Total assets were
$1.6 billion as of December 31, 2020.
2020 Full Year Highlights
-
2020 total net loss was
$34.8 million compared to a net loss of$1.8 million in 2019. -
2020 net interest margin was
8.65% compared to8.64% in 2019. -
2020 net income from Medallion’s consumer and commercial segments was
$41.6 million compared to$31.9 million in 2019, a30% increase. -
The recreation and home improvement net loan portfolios grew
10% and34% from December 31, 2019. -
Consumer originations were
$488.0 million for the year, up10% from$443.5 million in 2019. - In 2020, the Company deemed the medallion portfolio to be impaired as a result of the impact of COVID-19 on our borrowers, resulting in all loans being placed on nonaccrual status and adjusted down to collateral value.
-
Net medallion loans dropped
88% from$105.0 million to$12.7 million at year end.
Andrew Murstein, President of Medallion, stated, “We are pleased with how the Company navigated through the pandemic, as we took the appropriate steps to largely put the medallion portfolio behind us. Medallion Bank as a standalone recorded
Alvin Murstein, Chairman and CEO of Medallion, stated, “We received payments from the medallion loans and other assets of
Larry Hall, Medallion’s CFO, stated, “In the fourth quarter we lowered our New York City medallion values from
Consumer Lending Segments
The Company’s net consumer lending portfolio was
Commercial Lending Segment
The Company’s net commercial lending portfolio was
Medallion Lending Segment
The Company’s net medallion lending portfolio, exclusive of loan collateral in the process of foreclosure, was
Mr. Hall concluded, “Cash flow from operations increased to
Conference Call Information
The Company will be hosting a conference call to discuss the fourth quarter financial results on Thursday, February 18, 2021, at 9:00 a.m. Eastern time.
The dial-in number for the conference call is (877) 407-0789 (toll-free) or (201) 689-8562 (direct). Please dial the number 10 minutes prior to the scheduled start time. A live webcast of the conference call will also be available on Medallion’s website at http://www.medallion.com/investors.html.
A replay will be available following the end of the call through Thursday, February 25, 2021, by telephone at (844) 512-2921 (toll-free) or (412) 317-6671 (direct), passcode 13716524. A webcast replay of the call will be available at http://www.medallion.com/investors.html until the next quarter’s results are announced.
* * *
About Medallion Financial Corp.
Medallion Financial Corp. is a finance company that originates and services loans in various industries, and its wholly-owned subsidiary, Medallion Bank, also originates and services consumer loans. Medallion Financial Corp. has lent more than
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, and growth. These statements are often, but not always, made through the use of words or phrases such as “will” and “continue” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, expectations regarding medallion loan portfolio, the potential for future asset growth and market share opportunities. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the COVID-19 pandemic on Medallion’s business, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion’s control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on Medallion, its customers and third parties. In addition to risks related to the ongoing COVID-19 pandemic, for a description of certain risks to which Medallion is or may be subject, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2019 Annual Report on Form 10-K and Form 10-Q for the quarter ended September 30, 2020.
MEDALLION FINANCIAL CORP. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
| For the Three Months Ended December 31 | For the Year Ended December 31 | |||||||||||||||
| (Dollars in thousands, except shares and per share data) | 2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
| Total interest income | $ |
36,392 |
|
$ |
35,864 |
|
$ |
144,962 |
|
$ |
132,562 |
|
||||
| Total interest expense |
|
7,932 |
|
|
9,277 |
|
|
34,151 |
|
|
35,045 |
|
||||
| Net interest income |
|
28,460 |
|
|
26,587 |
|
|
110,811 |
|
|
97,517 |
|||||
| Provision (benefit) for loan losses |
|
(3,414 |
) |
|
10,535 |
|
|
69,817 |
|
|
47,386 |
|
||||
| Net interest income after provision for loan losses |
|
31,874 |
|
|
16,052 |
|
|
40,994 |
|
|
50,131 |
|
||||
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FAQ
What were Medallion Financial's fourth quarter results for 2020?
Medallion Financial reported a net income of $6.5 million in Q4 2020, compared to a net loss of $0.5 million in Q4 2019.
How did Medallion Financial perform in 2020?
The company reported a total net loss of $34.8 million in 2020, a significant increase from a $1.8 million loss in 2019.
What is the current financial status of Medallion Financial's medallion loans?
Medallion loans dropped 88% from $105 million to $12.7 million at the year-end 2020.
What was the net interest margin for Medallion Financial in 2020?
The net interest margin for Medallion Financial was 8.65% in 2020, compared to 8.64% in 2019.
How did consumer lending perform for Medallion Financial in 2020?
Net income from consumer and commercial segments increased by 30% to $41.6 million in 2020 compared to $31.9 million in 2019.
Medallion Financial Corp
NASDAQ:MFINMFIN RankingsMFIN Latest NewsMFIN Stock Data
207.94M
23.17M
21.64%
35.84%
5.15%
Credit Services
Finance Services
United States of America
NEW YORK
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