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Jun 30, 2020
Medallion Q2 2020 Earnings Report
Reported a net loss, but consumer loan originations reached an all-time high and net interest income increased.
Key Takeaways
Medallion Financial Corp. reported a net loss of $4.0 million, or $0.16 per share, for the second quarter of 2020. However, net interest income increased by 16% year-over-year, driven by the consumer lending segments. Consumer loan originations reached an all-time high, and the consumer loan portfolio surpassed $1.0 billion.
Net loss was $4.0 million, or $0.16 per share, compared to a net loss of $7.5 million in the prior year period.
Net interest income increased by 16% to $26.8 million, primarily due to the consumer lending segments.
Consumer loan originations reached an all-time high of $150.9 million, up 11% from the prior year quarter.
The consumer loan portfolio reached an all-time high of $1.0 billion in net outstandings.
Medallion
Medallion
Medallion Revenue by Segment
Revenue by Segment
Consumer Lending Revenue
CapyFin.comCommercial Lending Revenue
CapyFin.com Forward Guidance
Medallion expects to continue executing its strategy of growing consumer and commercial segments while reducing medallion-related exposure.
Positive Outlook
- Growing consumer and commercial segments.
- Reducing total medallion-related exposure.
- Medallion Capital was just approved for an additional $25 million of SBA leverage.
- Consumer lending products showing strong demand
- Bank began originating loans with its first fintech partner in the second quarter
Challenges Ahead
- Potential impact of COVID-19 pandemic on consumer and medallion lending segments.
- Increased loan loss provisions due to COVID-19 concerns.
- COVID-19 continues to have a significant impact on the NYC economy and the taxi industry.
- Recovery process for medallion portfolio is difficult to predict and will likely remain choppy.
- Lowered collateral value from $124,500 net to $119,500 net for NYC medallions