Medallion Bank Q4 Nothing Short of Ugly as Medallion Loan Deterioration Accelerates

Posted by Jay Hickman as “truthincyber” on Yahoo Finance Message Board for TAXI on January 30, 2016

Sum of delinquencies, nonaccruals, TDRs, loan loss reserves and chargeoffs net of recoveries, went from $26.8 mm to $46.2 mm.

Don’t know what medallion loan balances are, but if flat (probably declined again, which means the loan quality deterioration was even worse on a % basis) went from 7.5% to 13.1%.

Earnings fell sequentially, and were down for the year.

Tier 1 capital as % of average assets effectively at the MINIMUM as set by TAXI and FDIC (looks to be 15.1%).

Helps explain.

They paid a $3 mm dividend, and only got back $1 mm from TAXI.

Will be interesting to see how TAXI handles 25% max non-RIC asset test.

No way to put lipstick on this quarter and make it pretty. UGLY.

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