EX-99.1 2 mfin-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

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FOR IMMEDIATE RELEASE:

MEDALLION FINANCIAL CORP. REPORTS 2024 FOURTH QUARTER

AND FULL-YEAR RESULTS

NEW YORK, NY – March 4, 2025 – Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic partners, announced today its results for the quarter and full-year ended December 31, 2024.

2024 Fourth Quarter Highlights

•
Net income was $10.1 million, or $0.43 per share, compared to $14.3 million, or $0.60 per share, in the prior year quarter, and included $1.3 million of taxi medallion recoveries in the current quarter compared to $12.5 million in the prior year quarter.
•
Net interest income grew 6% to $52.0 million from $49.0 million in the prior year quarter.
•
Net interest margin on net loans was 8.15%, compared to 8.50% in the prior year quarter, and on gross loans it was 7.84%, compared to 8.20% in the prior year quarter.
•
Loan originations grew 69% to $285.7 million, compared to $169.1 million in the prior year quarter.
•
Credit loss provision increased to $20.6 million from $10.8 million in the prior year quarter.
•
The Board of Directors increased the quarterly dividend 10% to $0.11 per share.
•
In connection with a pending agreement in principle with the SEC's Division of Enforcement on terms of settlement, the Company recorded a charge of $3.0 million as well as a benefit of $5.5 million related to insurance coverage of legal costs incurred.

2024 Full-Year Highlights

•
Net income was $35.9 million, or $1.52 per share, compared to $55.1 million, or $2.37 per share, in the prior year, and included $6.9 million of taxi medallion recoveries in the current year compared to $29.6 million in the prior year.
•
Net interest income grew 8% to $202.5 million from $188.1 million in the prior year.
•
Net interest margin on net loans was 8.35%, compared to 8.68% in the prior year, and on gross loans it was 8.05%, compared to 8.38% in the prior year.
•
Loan originations were $1.0 billion, compared to $960.0 million in the prior year.
•
Total loans, including loans held for sale, grew 12% to $2.5 billion as of December 31, 2024, compared to $2.2 billion a year ago.
•
Credit loss provision increased to $76.5 million from $37.8 million in the prior year.
•
The Company repurchased 570,404 shares of common stock at an average cost of $8.07 per share in the year, for a total of $4.6 million.
•
Total assets grew to $2.9 billion as of December 31, 2024, an 11% increase over December 31, 2023.

Executive Commentary – Andrew Murstein, President of Medallion

"We continue to be pleased with our quarterly and full-year performance. In the fourth quarter of 2023, taxi medallion recoveries added $0.37 to our bottom line compared to only $0.04 this quarter. For the full year, and the first time in our history, we originated over $1 billion of loans, more than half of which were high yielding recreation loans. We are quite pleased with this accomplishment.

Our commercial lending group, Medallion Capital, exited a portfolio investment during the quarter generating net gains of $3.8 million on equity investments, with full year net gains of $6.9 million. Although our equity investments are small, over time they have generated meaningful earnings to our bottom line, with net gains totaling nearly $15 million over the past three years.

Finally, in the quarter we reached an agreement in principle on terms of settlement and recorded a charge of $3.0 million related to the SEC matter as well as recognized a $5.5 million benefit related to insurance coverage of legal costs associated with this matter. The agreement is subject to approval of the Commissioners of the SEC and the court, and we look forward to bringing closure to this matter.

We are quite happy with where we are as a company, especially with the performance we have delivered over the past several years. We finished the year with record total interest income, net interest income, assets, strategic partnership loan volume, and total equity. We believe we are well-positioned for 2025 and the years ahead.”

 

 

Business Segment Highlights

Recreation Lending Segment

•
Originations were $72.2 million during the quarter, compared to $62.7 million a year ago.
•
Recreation loans, including loans held for investment and loans held for sale, grew 15% to $1.5 billion, or 62% of total loans, as of December 31, 2024, compared to $1.3 billion, or 60% of total loans, a year ago.
•
Interest income grew 15% to $51.3 million for the quarter, from $44.4 million in the prior year quarter.
•
The average interest rate was 15.07% at year-end, compared to 14.79% a year ago.
•
Recreation loans 90 days or more past due were $10.0 million, or 0.67% of gross recreation loans, as of December 31, 2024, compared to $9.1 million, or 0.70%, a year ago.
•
Allowance for credit loss was 5.00% at year-end for loans held for investment, compared to 4.31% a year ago.
•
In December 2024, we signed a letter of intent to sell up to $121 million of recreation loans at a premium to par value.

Home Improvement Lending Segment

•
Originations were $82.5 million during the quarter, compared to $66.0 million a year ago.
•
Home improvement loans grew 9% to $827.2 million, or 33% of total loans, as of December 31, 2024, compared to $760.6 million, or 34% of total loans, a year ago.
•
Interest income grew 16% to $19.9 million for the quarter, from $17.2 million in the prior year quarter.
•
The average interest rate was 9.81% at year-end, compared to 9.51% a year ago.
•
Home improvement loans 90 days or more past due were $1.4 million, or 0.17% of gross home improvement loans, as of December 31, 2024, compared to $1.5 million, or 0.20%, a year ago.
•
Allowance for credit loss was 2.48% at year-end, compared to 2.76% a year ago.

Commercial Lending Segment

•
Commercial loans were $111.3 million at 2024, compared to $114.8 million a year ago.
•
The average interest rate on the portfolio was 12.97%, compared to 12.87% a year ago.

Taxi Medallion Lending Segment

•
The Company collected $2.6 million of cash on taxi medallion-related assets during the quarter.
•
Total net taxi medallion assets declined to $7.7 million, a 37% reduction from a year ago, and represented less than 0.5% of the Company’s total assets, as of December 31, 2024.

 

Capital Allocation

Quarterly Dividend

•
The Board of Directors declared a quarterly dividend of $0.11 per share, payable on March 31, 2025, to shareholders of record at the close of business on March 17, 2025.

 

Stock Repurchase Plan

•
As of December 31, 2024, the Company had $15.4 million remaining under its $40 million share repurchase program. During 2024, the Company purchased 570,404 shares for $4.6 million.

2

 

 

Conference Call Information

The Company will host a conference call to discuss its fourth quarter and full-year financial results tomorrow, Wednesday, March 5, 2025, at 9:00 a.m. Eastern time.

In connection with its earnings release, the Company has updated its quarterly supplement presentation, which is now available at www.medallion.com.

 

How to Participate

•
Date: Wednesday, March 5, 2025
•
Time: 9:00 a.m. Eastern time
•
U.S. dial-in number: (833) 816-1412
•
International dial-in number: (412) 317-0504
•
Live webcast: Link to Webcast of 4Q24 Earnings Call

A link to the live audio webcast of the conference call will also be available at the Company’s IR website.

 

Replay Information

The webcast replay will be available at the Company's IR website until the next quarter’s results are announced.

The conference call replay will be available following the end of the call through Wednesday, March 12

•
U.S. dial-in number: (844) 512-2921
•
International dial-in number: (412) 317-6671
•
Passcode: 1019 6407

 

About Medallion Financial Corp.

Medallion Financial Corp. (NASDAQ: MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com.

 

Forward-Looking Statements

Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and our growth strategy. These statements are often, but not always, made using words or phrases such as “will” and “continue” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, the impact of the pending SEC litigation, expectations regarding our loan portfolio, including collections on our medallion loans, the potential for future asset growth, and market share opportunities. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, whether inflation or the risk of recession, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion’s control. In addition to risks relating to the current economy, a description of certain risks to which Medallion is or may be subject, including risks related to the pending SEC litigation, the settlement of which remains subject to SEC and court approval, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2023 Annual Report on Form 10-K.

 

Company Contact:

Investor Relations

212-328-2176

[email protected]

 

 

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

December 31,

 

(Dollars in thousands, except share and per share data)

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

Cash, cash equivalents, and federal funds sold

 

$

169,572

 

 

$

149,845

 

Investment and equity securities

 

 

64,003

 

 

 

65,712

 

Loans

 

 

2,362,796

 

 

 

2,215,886

 

Allowance for credit losses

 

 

(97,368

)

 

 

(84,235

)

Net loans receivable

 

 

2,265,428

 

 

 

2,131,651

 

Loans held for sale, at lower of amortized cost or fair value

 

 

128,226

 

 

 

—

 

Goodwill and intangible assets, net

 

 

169,949

 

 

 

171,394

 

Property, equipment, and right-of-use lease asset, net

 

 

13,756

 

 

 

14,076

 

Accrued interest receivable

 

 

15,314

 

 

 

13,538

 

Loan collateral in process of foreclosure

 

 

9,932

 

 

 

11,772

 

Other assets

 

 

32,426

 

 

 

29,839

 

Total assets

 

$

2,868,606

 

 

$

2,587,827

 

Liabilities

 

 

 

 

 

 

Deposits

 

$

2,090,071

 

 

$

1,866,657

 

Long-term debt

 

 

232,159

 

 

 

235,544

 

Short-term borrowings

 

 

49,000

 

 

 

8,000

 

Deferred tax liabilities, net

 

 

20,995

 

 

 

21,207

 

Operating lease liabilities

 

 

5,128

 

 

 

7,019

 

Accrued interest payable

 

 

8,231

 

 

 

6,822

 

Accounts payable and accrued expenses

 

 

24,064

 

 

 

30,804

 

Total liabilities

 

 

2,429,648

 

 

 

2,176,053

 

Total stockholders’ equity

 

 

370,170

 

 

 

342,986

 

Non-controlling interest in consolidated subsidiaries

 

 

68,788

 

 

 

68,788

 

Total equity

 

 

438,958

 

 

 

411,774

 

Total liabilities and equity

 

$

2,868,606

 

 

$

2,587,827

 

Number of shares outstanding

 

 

23,135,624

 

 

 

23,449,646

 

Book value per share

 

$

16.00

 

 

$

14.63

 

 

4

 

 

MEDALLION FINANCIAL CORP.‌

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)‌

 

 

Three Months Ended December 31,

 

 

Years Ended December 31,

 

(Dollars in thousands, except share and per share data)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Total interest income

 

$

76,519

 

 

$

67,585

 

 

$

290,702

 

 

$

251,040

 

Total interest expense

 

 

24,507

 

 

 

18,567

 

 

 

88,167

 

 

 

62,946

 

Net interest income

 

 

52,012

 

 

 

49,018

 

 

 

202,535

 

 

 

188,094

 

Provision for credit losses

 

 

20,572

 

 

 

10,764

 

 

 

76,502

 

 

 

37,810

 

Net interest income after provision for credit losses

 

 

31,440

 

 

 

38,254

 

 

 

126,033

 

 

 

150,284

 

Other income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Gain on equity investments, net

 

 

3,782

 

 

 

2,989

 

 

 

6,917

 

 

 

5,178

 

Gain on sale of loans and taxi medallions

 

 

123

 

 

 

413

 

 

 

1,293

 

 

 

4,992

 

Write-down of loan collateral in process of foreclosure

 

 

(509

)

 

 

(1,393

)

 

 

(528

)

 

 

(1,696

)

Other income

 

 

846

 

 

 

979

 

 

 

3,648

 

 

 

2,846

 

Total other income, net

 

 

4,242

 

 

 

2,988

 

 

 

11,330

 

 

 

11,320

 

Other expenses

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,997

 

 

 

9,757

 

 

 

38,344

 

 

 

37,562

 

Loan servicing fees

 

 

2,820

 

 

 

2,459

 

 

 

10,771

 

 

 

9,543

 

Collection costs

 

 

1,581

 

 

 

1,271

 

 

 

6,380

 

 

 

6,000

 

Regulatory fees

 

 

969

 

 

 

710

 

 

 

3,795

 

 

 

3,194

 

Professional fee costs (benefits), net

 

 

(4,806

)

 

 

1,663

 

 

 

(1,372

)

 

 

5,886

 

Rent expense

 

 

663

 

 

 

617

 

 

 

2,682

 

 

 

2,472

 

Amortization of intangible assets

 

 

361

 

 

 

361

 

 

 

1,445

 

 

 

1,445

 

Penalties

 

 

3,000

 

 

 

—

 

 

 

3,000

 

 

 

—

 

Other expenses

 

 

2,628

 

 

 

2,246

 

 

 

9,382

 

 

 

9,466

 

Total other expenses

 

 

17,213

 

 

 

19,084

 

 

 

74,427

 

 

 

75,568

 

Income before income taxes

 

 

18,469

 

 

 

22,158

 

 

 

62,936

 

 

 

86,036

 

Income tax provision

 

 

6,815

 

 

 

6,328

 

 

 

21,011

 

 

 

24,910

 

Net income after taxes

 

 

11,654

 

 

 

15,830

 

 

 

41,925

 

 

 

61,126

 

Less: income attributable to the non-controlling interest

 

 

1,512

 

 

 

1,512

 

 

 

6,047

 

 

 

6,047

 

Total net income attributable to Medallion Financial Corp.

 

$

10,142

 

 

$

14,318

 

 

$

35,878

 

 

$

55,079

 

Basic net income per share

 

$

0.45

 

 

$

0.63

 

 

$

1.59

 

 

$

2.45

 

Diluted net income per share

 

$

0.43

 

 

$

0.60

 

 

$

1.52

 

 

$

2.37

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,455,498

 

 

 

22,608,243

 

 

 

22,546,051

 

 

 

22,510,435

 

Diluted

 

 

23,757,406

 

 

 

23,765,866

 

 

 

23,605,493

 

 

 

23,248,323

 

Dividends declared per common share

 

$

0.11

 

 

$

0.10

 

 

$

0.41

 

 

$

0.34

 

 

5