Medallion Financial Q3 profit drops on higher credit loss provisions

Medallion Financial

Yesterday 20:28

Overview
Specialty finance firm's Q3 net income and EPS fell sharply from prior year
Net interest income rose 5% yr/yr, but net interest margin narrowed
Company repurchased $5.6 mln in stock and announced new $40 mln buyback program

Outlook
Company expects recently raised capital to support growth in consumer lending in coming quarters
Company authorized new $40 mln stock repurchase program to be executed opportunistically
Company expects gain from extinguishment of $15 mln trust preferred securities in Q4

Result Drivers
CREDIT LOSS PROVISIONS - Co said higher upfront provisions for credit losses tied to loan growth reduced earnings in the quarter
LOAN ORIGINATION GROWTH - Co reported 41% yr/yr increase in total loan originations, led by 145% rise in home improvement loans

Company press release: ID:nGNXmct65

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$0.10
 
Q3 Net Income
 
$2.40 mln
 
Q3 Net Interest Income
 
$58.40 mln
 
Q3 Dividend
 
$0.14
 
Q3 Net Interest Margin
 
7.34%
 

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)