Medallion Financial Corp. Reports 2020 Fourth Quarter and Full Year Results

Medallion Monetary Corp. (NASDAQ:MFIN, “Medallion” or the “Firm”), a finance firm that originates and companies loans in varied client and industrial area of interest industries, introduced right now its 2020 fourth quarter and full 12 months outcomes.

2020 Fourth Quarter Highlights

Web revenue was $6.5 million, or $0.26 per share, in comparison with web lack of $0.5 million, or $0.02 per share, within the prior 12 months quarter.
Web curiosity revenue was $28.5 million within the quarter, primarily reflecting the contribution of the patron lending segments, a 7.1% improve from $26.6 million within the prior 12 months quarter.
Web curiosity margin was 8.89% within the quarter, the best in 13 years.
Web revenue from the Firm’s client and industrial lending segments elevated 97% to $14.2 million within the quarter, in comparison with $7.2 million within the prior 12 months quarter.
Medallion Financial institution’s Tier 1 leverage ratio at quarter-end was 16.93%.
Whole belongings have been $1.6 billion as of December 31, 2020.

2020 Full 12 months Highlights

2020 whole web loss was $34.8 million in comparison with a web lack of $1.8 million in 2019.
2020 web curiosity margin was 8.65% in comparison with 8.64% in 2019.
2020 web revenue from Medallion’s client and industrial segments was $41.6 million in comparison with $31.9 million in 2019, a 30% improve.
The recreation and residential enchancment web mortgage portfolios grew 10% and 34% from December 31, 2019.
Client originations have been $488.0 million for the 12 months, up 10% from $443.5 million in 2019.
In 2020, the Firm deemed the medallion portfolio to be impaired because of the affect of COVID-19 on our debtors, leading to all loans being positioned on nonaccrual standing and adjusted all the way down to collateral worth.
Web medallion loans dropped 88% from $105.0 million to $12.7 million at 12 months finish.

Andrew Murstein, President of Medallion, said, “We’re happy with how the Firm navigated via the pandemic, as we took the suitable steps to largely put the medallion portfolio behind us. Medallion Financial institution as a standalone recorded $14.3 million of web revenue within the fourth quarter, and $48.0 million in 2020 web revenue from their recreation and residential enchancment lending segments, each the best within the Financial institution’s historical past. We stayed the course of tightening our credit score and underwriting standards through the 12 months. Software volumes remained excessive, and development continued, whereas net-charge offs remained low, demonstrating the power of these portfolios. We stay up for constructing on the momentum our client segments have proven this previous 12 months. As well as, we proceed to deal with the build-out of our fintech Strategic Partnership Program at Medallion Financial institution the place quantity was up in January. We consider we’ll signal our second partnership within the subsequent 60 days and that this line of enterprise will develop in 2021.”

Alvin Murstein, Chairman and CEO of Medallion, said, “We obtained funds from the medallion loans and different belongings of $12.8 million within the fourth quarter and recorded $6.7 million of recoveries for the 12 months. We proceed to prioritize recoveries as now we have considerably decreased our medallion mortgage publicity 12 months over 12 months.”

Larry Corridor, Medallion’s CFO, said, “Within the fourth quarter we lowered our New York Metropolis medallion values from $90,300 web to $79,500 web which in the end contributed to a medallion section lack of $3.6 million for the quarter. Our web curiosity margin remained robust within the fourth quarter at 8.89%, as the upper yielding client portfolio continues to carry out whereas the medallion loans have been impaired and positioned on non-accrual.”

Client Lending Segments

The Firm’s web client lending portfolio was $1.1 billion as of December 31, 2020, in comparison with $940.0 million at December 31, 2019. Web curiosity revenue for the 2020 fourth quarter was $31.8 million, in comparison with $27.0 million within the 2019 fourth quarter, an 18% improve. The typical rate of interest on the portfolio was 13.64% at December 31, 2020, in comparison with 14.54% a 12 months in the past. Client mortgage delinquencies 90 days or extra overdue have been $5.5 million, or 0.50% of whole gross loans as of December 31, 2020, in comparison with $6.0 million, or 0.64%, a 12 months in the past.

Industrial Lending Section

The Firm’s web industrial lending portfolio was $62.0 million as of December 31, 2020, in comparison with $66.4 million at December 31, 2019. The typical rate of interest on the portfolio was 13.39%, in comparison with 13.63% a 12 months in the past. Web revenue for the fourth quarter was $0.032 million, in comparison with $0.366 million within the prior 12 months interval. The industrial portfolio stays secure and deal stream stays robust. We anticipate a continued gradual restoration of efficiency inside the general portfolio as lots of its debtors are actually working at pre-COVID ranges.

Medallion Lending Section

The Firm’s web medallion lending portfolio, unique of mortgage collateral within the technique of foreclosures, was $12.7 million as of December 31, 2020, in comparison with $105.0 million at December 31, 2019. The said common rate of interest on the medallion mortgage portfolio was 3.00%, in comparison with 4.17% a 12 months in the past. Together with mortgage collateral within the technique of foreclosures and owned Chicago medallion belongings, whole medallion publicity comprised 4% of our whole belongings as of December 31, 2020, in comparison with 10% at December 31, 2019.

Mr. Corridor concluded, “Money stream from operations elevated to $79 million in 2020 from $65 million in 2019, reflecting robust outcomes of our client lending segments on our general operations. With Medallion Financial institution recording a Tier 1 leverage ratio of 16.93% and holding $218.5 million of capital, the Firm is well-positioned for the longer term.”

Convention Name Data

The Firm will probably be internet hosting a convention name to debate the fourth quarter monetary outcomes on Thursday, February 18, 2021, at 9:00 a.m. Japanese time.

The dial-in quantity for the convention name is (877) 407-0789 (toll-free) or (201) 689-8562 (direct). Please dial the quantity 10 minutes previous to the scheduled begin time. A stay webcast of the convention name may even be out there on Medallion’s web site at http://www.medallion.com/investors.html.

A replay will probably be out there following the tip of the decision via Thursday, February 25, 2021, by phone at (844) 512-2921 (toll-free) or (412) 317-6671 (direct), passcode 13716524. A webcast replay of the decision will probably be out there at http://www.medallion.com/investors.html till the following quarter’s outcomes are introduced.

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About Medallion Monetary Corp.

Medallion Monetary Corp. is a finance firm that originates and companies loans in varied industries, and its wholly-owned subsidiary, Medallion Financial institution, additionally originates and companies client loans. Medallion Monetary Corp. has lent greater than $9 billion since its preliminary public providing in 1996.

Please observe that this press launch comprises forward-looking statements that contain dangers and uncertainties regarding enterprise efficiency, money stream, web curiosity revenue and bills, different bills, earnings, and development. These statements are sometimes, however not all the time, made via the usage of phrases or phrases reminiscent of “will” and “proceed” or the unfavourable model of these phrases or different comparable phrases or phrases of a future or forward-looking nature. These statements relate to future public bulletins of our earnings, expectations concerning medallion mortgage portfolio, the potential for future asset development and market share alternatives. Medallion’s precise outcomes could differ considerably from the outcomes mentioned in such forward-looking statements. For instance, statements in regards to the results of the COVID-19 pandemic on Medallion’s enterprise, operations, monetary efficiency and prospects represent forward-looking statements and are topic to the danger that the precise impacts could differ, probably materially, from what’s mirrored in these forward-looking statements as a consequence of elements and future developments which might be unsure, unpredictable and in lots of circumstances past Medallion’s management, together with the scope and length of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and oblique affect of the pandemic on Medallion, its prospects and third events. Along with dangers associated to the continued COVID-19 pandemic, for an outline of sure dangers to which Medallion is or could also be topic, please confer with the elements mentioned underneath the heading “Danger Components” in Medallion’s 2019 Annual Report on Kind 10-Okay and Kind 10-Q for the quarter ended September 30, 2020.

MEDALLION FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS


	For the Three Months Ended December 31						For the 12 months Ended December 31
({Dollars} in 1000’s, besides shares and per share information)	2020			2019			2020			2019
Whole curiosity revenue	$	36,392		$	35,864		$	144,962		$	132,562
Whole curiosity expense		7,932			9,277			34,151			35,045
Web curiosity revenue		28,460			26,587			110,811			97,517

Provision (profit) for mortgage losses		(3,414	)		10,535			69,817			47,386
Web curiosity revenue after provision for mortgage losses		31,874			16,052			40,994			50,131

Different revenue (loss)
Sponsorship and race winnings		4,881			2,734			20,042			18,742
Writedown of mortgage collateral in technique of foreclosures		(8,695	)		(177	)		(24,523	)		(4,381	)
Achieve on extinguishment of debt		–			–			–			4,145
Different revenue (loss)		642			410			(1,455	)		1,881
Whole different revenue (loss)		(3,172	)		2,967			(5,936	)		20,387

Different bills
Salaries and worker advantages		7,456			6,514			28,172			24,971
Race staff associated bills		1,782			1,785			8,366			8,996
Skilled charges		1,488			1,441			8,047			7,402
Mortgage servicing charges		1,667			1,402			6,737			5,253
Assortment prices		1,248			2,049			5,454			6,638
Different bills		4,260			3,752			15,263			14,921
Whole different bills		17,901			16,943			72,039			68,181

Revenue earlier than revenue taxes		10,801			2,076			(36,981	)		2,337
Revenue tax (provision) profit		(2,409	)		(2,267	)		10,074			(341	)
Web revenue (loss) after revenue taxes		8,392			(191	)		(26,907	)		1,996
Much less: revenue attributable to non-controlling pursuits		1,925			274			7,876			3,758
Whole web revenue (loss) attributable to Medallion Monetary Corp.	$	6,467		$	(465	)	$	(34,783	)	$	(1,762	)
Fundamental web revenue (loss) per share	$	0.26		$	(0.02	)	$	(1.42	)	$	(0.07	)
Diluted web revenue (loss) per share		0.26			(0.02	)		(1.42	)		(0.07	)
Weighted common widespread shares excellent
Fundamental		24,461,488			24,361,680			24,445,452			24,342,979
Diluted		24,461,488			24,361,680			24,445,452			24,342,979

MEDALLION FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS

({Dollars} in 1000’s, besides shares and per share information)	December 31, 2020			December 31, 2019
Belongings
Money, money equivalents and federal funds bought	$	112,040		$	67,821
Fairness investments and funding securities		56,538			59,077
Loans		1,229,838			1,160,855
Allowance for mortgage losses		(57,548	)		(46,093	)
Web loans receivable		1,172,290			1,114,762
Mortgage collateral in technique of foreclosures		54,560			52,711
Goodwill and intangible belongings		201,893			203,339
Different belongings		45,090			43,957
Whole belongings	$	1,642,411		$	1,541,667

Liabilities
Accounts payable, accrued bills, and accrued curiosity payable	$	19,575		$	20,632
Deposits		1,065,398			951,651
Quick-term borrowings		87,334			38,223
Deferred tax liabilities and different tax payables		807			9,341
Working lease liabilities		11,018			12,738
Lengthy-term debt		153,718			174,614
Whole liabilities		1,337,850			1,207,199

Commitments and contingencies
Whole stockholders’ fairness		231,408			263,148

Non-controlling pursuits in consolidated subsidiaries		73,153			71,320
Whole fairness		304,561			334,368

Whole liabilities and fairness	$	1,642,411		$	1,541,667

Variety of shares excellent		24,877,628			24,646,559
E book worth per share	$	9.30		$	10.68