Medallion Bank reported its Recreation Lending segment grew its portfolio by 13% in 2023 from 2022 levels, leading to record quarterly and annual bank earnings.
The RV and marine lender said the bank’s profits rose 7.1% in 2023 from 2022 levels. In the fourth quarter of 2023, profits rose 11.2% from the fourth quarter of 2022.
Medallion Bank President and CEO Donald Poulton said the company posted an excellent end to another great year.
“Contributing to our fourth quarter results were $12 million of Medallion loan recoveries that reduced our provision for credit losses,” Poulton said. “Those recoveries came as recreation and home improvement loan losses trended higher, as anticipated, to a level more comparable with pre-pandemic historic norms.”
Recreation loans collected $140.3 million in net interest income for 2023, up 12.7% from 2022. Annualized net charge-offs among outstanding recreation loans totaled 4.2%, up from 2.4% in the fourth quarter of 2022 as loan performance returns to historically normal levels.
Recreation loans comprised 63.6% of Medallion’s loans receivable at the end of 2023, compared with 64.9% of loans receivable at the end of 2022.
“As we move through 2024,” Poulton said, “our team of talented employees remains focused on prudent growth, credit risk and balance sheet management. We look forward to having another strong year.”
Medallion issued a 50-cent dividend per share, payable April 1 to shareholders of record March 15. Yahoo Finance reported Medallion had about 23.36 million shares outstanding. The dividend would return about $11.68 million to shareholders.
