Medical Financial (NASDAQ: MFIN) reported Q1 EPS of $0.34, $0.15 better than the analyst estimate of $0.19.

2021 First Quarter Highlights

• Net income was $8.4 million, or $0.34 per share, compared to a net loss of $13.6 million, or $0.56 per share, in the prior year quarter.
• Net interest income was $28.7 million in the quarter, primarily reflecting the contribution of the consumer lending segments, compared to $26.5 million in the 2020 quarter.
• Net interest margin was 9.18% in the quarter.
• Net income from the Company’s consumer and commercial lending segments increased to $15.1 million in 2021, compared to $4.3 million a year ago.
• The recreation and home improvement net loan portfolios grew 11% and 33% from March 31, 2020.
• Consumer originations were $142.0 million in the quarter, up 37% from $103.2 million in 2020 quarter.
• Operating expenses decreased $4.6 million from the prior year quarter.
• Medallion Bank’s Tier 1 leverage ratio at quarter-end was 18.03%.
• Total assets were $1.7 billion as of March 31, 2021.
• The Company sold an additional $51.4 million in senior notes during the quarter through April, for a total of $85.0 million including notes sold in December 2020.

Andrew Murstein, President of Medallion Financial, stated, “We are very pleased with this quarter's results, which was, in many ways, one of our best quarters. Medallion Financial recorded $8.4 million of net income for the quarter, reflecting continued strong underlying performance from our consumer lending segments. Medallion Bank continues to perform well, with the highest volume to date in March for its recreation lending segment. In addition, during the quarter, we recorded low consumer charge-offs and delinquencies. We continue to monitor expenses at Medallion Financial and are taking steps that we hope will produce long-term value for our shareholders. Our second fintech partnership will soon be active, and we look forward to providing updates throughout the year on the progress we are making with this initiative.”

Larry Hall, CFO of Medallion Financial, stated, “Our net interest margin continued to move higher as losses from the medallion segment are no longer having such a large impact on the Company’s financial results, while our higher yielding consumer portfolio continues to perform well, leading to a net interest margin of 9.18%. We were also able to raise funds through the sale of senior notes, at a rate lower than our publicly traded debt (MFINL), and used some of the proceeds to pay off that debt at maturity in April.”

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