Medallion Financial Corp. Announces Sale of $127 Million of Medallion Bank Consumer Loan Receivables at a Premium
December 13 2017 - 8:00AM
Business Wire
Medallion Financial Corp. (Nasdaq: MFIN) announced today that
Medallion Bank, the Company’s unconsolidated wholly-owned portfolio
company, recently closed a sale of $127 million in prime-credit
consumer loan receivables to a super-regional bank for cash
proceeds of $134.7 million. As a result, Medallion Bank expects to
record a gain on sale from the transaction of $4.4 million for the
fourth quarter of 2017.
“The loan sale allows us to better manage the size of our
balance sheet, generate gains to facilitate future growth and
further confirms the value of the Bank’s portfolio activities and
focused underwriting,” said Donald Poulton, Chief Executive Officer
of Medallion Bank. “Aided by our strong network of relationships,
we believe we are well positioned to originate additional consumer
loans that will generate continued strong risk-adjusted returns for
Medallion Bank.”
The sale is the Bank’s third of loans originated within its
consumer lending businesses, and consisted primarily of home
improvement and recreational vehicle installment loans. Consumer
lending has accounted for the vast majority of the $53 million in
net investment income before income taxes generated at Medallion
Bank for the nine months ended September 30, 2017.
About Medallion Financial Corp.
Medallion Financial Corp. is a specialty finance company that
originates and services loans in various commercial industries, and
its wholly-owned portfolio company, Medallion Bank, also originates
and services consumer loans. The Company and its subsidiaries have
lent approximately $7 billion to small businesses.
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, and growth. Medallion’s actual results may differ
significantly from the results discussed in such forward-looking
statements. Factors that might cause such a difference include, but
are not limited to, those factors discussed under the heading “Risk
Factors,” in Medallion’s 2016 Annual Report on Form 10-K.
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For Medallion Financial
Corp.Investors:212-328-2176InvestorRelations@medallion.comorMedia:Brian
Ruby, 203-682-8268bruby@icrinc.com
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