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 2025 FIRST QUARTER RESULTS

NEW YORK, NY – April 30, 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 ended March 31, 2025.

March 31, 2025 First Quarter Highlights

•
Net income grew 20% to $12.0 million, or $0.50 per share, compared to $10.0 million, or $0.42 per share, in the prior year quarter.
•
Net interest income grew 7% to $51.4 million from $47.9 million in the prior year quarter.
•
Net interest margin on net loans was 8.25%, compared to 8.39% in the prior year quarter, and on gross loans it was 7.94%, compared to 8.10% in the prior year quarter.
•
Loan originations grew to $281.6 million, compared to $173.1 million in the prior year quarter, and included $136.2 million of strategic partnership loans in the current quarter compared to $15.7 million in the prior year quarter.
•
Loans grew 12% to $2.5 billion as of March 31, 2025, compared to $2.2 billion a year ago.
•
Credit loss provision increased to $22.0 million from $17.2 million in the prior year quarter.
•
The Company declared and paid a quarterly cash dividend of $0.11 per share.
•
Subsequent to March 31, 2025, the Board of Directors increased the quarterly cash dividend to $0.12 per share.

Executive Commentary – Andrew Murstein, President of Medallion

"Once again we are pleased with our bottom-line performance and the $0.50 per share earnings this quarter. We have done a great job pivoting fully away from our legacy taxi medallion lending business. Our consumer lending businesses continue to perform well. Our commercial division, Medallion Capital, which we acquired for approximately 1.1 million MFIN shares back in 1998, had another greater quarter and generated strong equity gains. Since 2015, Medallion Capital has generated $67 million of earnings for our shareholders.

We originated more than $280 million of loans during the quarter, with strategic partnership loans accounting for nearly half. Strategic partnership loan volume increased to $136 million this quarter up from just $16 million one year ago. We saw delinquencies in both of our consumer loan portfolios improve from a quarter ago.

Lastly, we are happy to announce that our board of directors has increased our quarterly dividend to $0.12 per share. We look forward to a bright future for our Company and continuing to deliver positive returns to our shareholders.”

 

 

 

Business Segment Highlights

Recreation Lending Segment

•
Originations were $86.8 million during the quarter, compared to $105.8 million a year ago.
•
Recreation loans, including loans held for investment and loans held for sale, grew 13% to $1.5 billion, or 62% of total loans, as of March 31, 2025, compared to $1.4 billion a year ago.
•
Interest income grew 15% to $50.5 million for the quarter, from $43.9 million in the prior year quarter.
•
The average interest rate was 15.01% at quarter-end, 15.10% excluding loans held sale, compared to 14.80% a year ago.
•
Recreation loans 90 days or more past due were $7.1 million, or 0.48% of gross recreation loans, as of March 31, 2025, compared to $6.4 million, or 0.48%, a year ago.
•
Allowance for credit loss was 5.00% at quarter-end for loans held for investment, compared to 4.40% a year ago.

Home Improvement Lending Segment

•
Originations were $48.8 million during the quarter, compared to $51.6 million a year ago.
•
Home improvement loans grew 8% to $812.4 million, or 33% of total loans, as of March 31, 2025, compared to $752.3 million a year ago.
•
Interest income grew 13% to $19.8 million for the quarter, from $17.4 million in the prior year quarter.
•
The average interest rate was 9.83% at quarter-end, compared to 9.60% a year ago.
•
Home improvement loans 90 days or more past due were $1.5 million, or 0.19% of gross home improvement loans, as of March 31, 2025, compared to $1.4 million, or 0.18%, a year ago.
•
Allowance for credit loss was 2.49% at quarter-end, compared to 2.38% a year ago.

Commercial Lending Segment

•
Commercial loans were $116.1 million at March 31, 2025, compared to $106.6 million a year ago.
•
The average interest rate on the portfolio was 13.14%, compared to 13.00% 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 $6.8 million, a 37% reduction from a year ago, and represented less than 0.5% of the Company’s total assets, as of March 31, 2025.

 

Capital Allocation

Quarterly Dividend

•
The Board of Directors declared a quarterly dividend of $0.12 per share, payable on May 30, 2025, to shareholders of record at the close of business on May 15, 2025.

 

Stock Repurchase Plan

•
During the first quarter of 2025, the Company repurchased 60,185 shares of its common stock at an average cost of $8.83 per share for $0.5 million.
•
As of March 31, 2025, the Company had $14.9 million remaining under its $40 million stock repurchase program.

 

2

 

 

Conference Call Information

The Company will host a conference call to discuss its first quarter financial results tomorrow, Thursday, May 1, 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: Thursday, May 1, 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 1Q25 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 Thursday, May 8, 2025

•
U.S. dial-in number: (844) 512-2921
•
International dial-in number: (412) 317-6671
•
Passcode: 1019 8552

 

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, the effects of tariffs, 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 2024 Annual Report on Form 10-K.

 

Company Contact:

Investor Relations

212-328-2176

[email protected]

 

 

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

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

 

March 31, 2025

 

 

December 31, 2024

 

 

March 31, 2024

 

Assets

 

 

 

 

 

 

 

 

 

Cash, cash equivalents, and federal funds sold

 

$

157,994

 

 

$

169,572

 

 

$

169,125

 

Investment securities

 

 

60,424

 

 

 

54,805

 

 

 

53,038

 

Equity investments

 

 

8,997

 

 

 

9,198

 

 

 

16,374

 

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

 

 

124,733

 

 

 

128,226

 

 

 

—

 

Loans

 

 

2,361,700

 

 

 

2,362,796

 

 

 

2,228,426

 

Allowance for credit losses

 

 

(100,366

)

 

 

(97,368

)

 

 

(83,827

)

Net loans receivable

 

 

2,261,334

 

 

 

2,265,428

 

 

 

2,144,599

 

Goodwill and intangible assets, net

 

 

169,588

 

 

 

169,949

 

 

 

171,033

 

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

 

 

12,814

 

 

 

13,756

 

 

 

14,024

 

Accrued interest receivable

 

 

14,437

 

 

 

15,314

 

 

 

12,673

 

Loan collateral in process of foreclosure

 

 

9,183

 

 

 

9,932

 

 

 

10,198

 

Other assets

 

 

28,234

 

 

 

32,426

 

 

 

27,698

 

Total assets

 

$

2,847,738

 

 

$

2,868,606

 

 

$

2,602,388

 

Liabilities

 

 

 

 

 

 

 

 

 

Deposits

 

$

2,022,828

 

 

$

2,090,071

 

 

$

1,879,061

 

Long-term debt

 

 

199,665

 

 

 

232,159

 

 

 

225,558

 

Short-term borrowings

 

 

111,750

 

 

 

49,000

 

 

 

32,500

 

Deferred tax liabilities, net

 

 

21,538

 

 

 

20,995

 

 

 

24,846

 

Operating lease liabilities

 

 

4,528

 

 

 

5,128

 

 

 

6,710

 

Accrued interest payable

 

 

6,610

 

 

 

8,231

 

 

 

6,077

 

Accounts payable and accrued expenses

 

 

31,807

 

 

 

24,064

 

 

 

26,186

 

Total liabilities

 

 

2,398,726

 

 

 

2,429,648

 

 

 

2,200,938

 

Total stockholders’ equity

 

 

380,224

 

 

 

370,170

 

 

 

349,036

 

Non-controlling interest in consolidated subsidiaries

 

 

68,788

 

 

 

68,788

 

 

 

68,788

 

Total equity

 

 

449,012

 

 

 

438,958

 

 

 

417,824

 

Total liabilities and equity

 

$

2,847,738

 

 

$

2,868,606

 

 

$

2,618,762

 

Number of shares outstanding

 

 

23,235,030

 

 

 

23,135,624

 

 

 

23,377,564

 

Book value per share

 

$

16.36

 

 

$

16.00

 

 

$

14.93

 

 

4

 

 

MEDALLION FINANCIAL CORP.‌

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)‌

 

 

Three Months Ended March 31,

 

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

 

2025

 

 

2024

 

Total interest income

 

$

75,425

 

 

$

67,070

 

Total interest expense

 

 

24,013

 

 

 

19,153

 

Net interest income

 

 

51,412

 

 

 

47,917

 

Provision for credit losses

 

 

22,014

 

 

 

17,201

 

Net interest income after provision for credit losses

 

 

29,398

 

 

 

30,716

 

Other income

 

 

 

 

 

 

Gain on equity investments, net

 

 

9,430

 

 

 

4,167

 

Gain on taxi medallion assets, net

 

 

843

 

 

 

629

 

Strategic partnership fees

 

 

685

 

 

 

326

 

Other income

 

 

641

 

 

 

281

 

Total other income, net

 

 

11,599

 

 

 

5,403

 

Other expenses

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,993

 

 

 

9,457

 

Loan servicing fees

 

 

2,817

 

 

 

2,470

 

Collection costs

 

 

1,537

 

 

 

1,467

 

Regulatory fees

 

 

821

 

 

 

977

 

Professional fee costs, net

 

 

1,750

 

 

 

771

 

Rent expense

 

 

675

 

 

 

657

 

Amortization of intangible assets

 

 

361

 

 

 

361

 

Other expenses

 

 

2,804

 

 

 

2,065

 

Total other expenses

 

 

20,758

 

 

 

18,225

 

Income before income taxes

 

 

20,239

 

 

 

17,894

 

Income tax provision

 

 

6,713

 

 

 

6,358

 

Net income after taxes

 

 

13,526

 

 

 

11,536

 

Less: income attributable to the non-controlling interest

 

 

1,512

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

$

12,014

 

 

$

10,024

 

Basic net income per share

 

$

0.53

 

 

$

0.44

 

Diluted net income per share

 

$

0.50

 

 

$

0.42

 

Weighted average common shares outstanding

 

 

 

 

 

 

Basic

 

 

22,570,797

 

 

 

22,641,385

 

Diluted

 

 

23,897,167

 

 

 

23,765,045

 

Dividends declared per common share

 

$

0.12

 

 

$

0.10

 

 

5