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Medallion Bank, the recently formed subsidiary of Medallion Financial Corp., has purchased an RV and boat loan portfolio for around $87 million, the company announced.
“This is a transportation-related niche business that we believe is under served by the lending market and where we can become a market leader,” said Andrew Murstein, president of Medallion Financial.
The RV and boat loan portfolio is “very well-tested with an average seasoning of over 35 months, a yield of almost 17% and an average remaining contractual life of 75 months,” said John Taggart, CEO of Medallion Bank. “Less than 1% of the loans are past due 60 days or more and none are over 90 days past due.”
The $87 million to pay for the loan portfolio is being funded by deposits taken in by the bank, which “locks in our funding at historically low interest rates (on bank deposits),” Taggart said.
Medallion Financial specializes in the origination and servicing of loans for the purchase of taxicab medallions and related assets, according to the Nasdaq Stock Market-listed company.