Medallion Financial Corp (NASDAQ:MFIN) Q4 2019 Earnings Conference Call February 21, 2020 9:00 AM ET Company Participants Andrew Murstein ??? President Larry Hall ??? Chief Financial Officer Conference Call Participants Alex Twerdahl ??? Piper Sandler Mike Grondahl ??? Northland Capital Scott Buck ??? B. Riley Operator Good morning, and welcome, everyone, to Medallion Financial???s 2019 Fourth Quarter and Year-End Earnings Call. By now, everyone should have access to the earnings announcement, which was rel ...

Medallion Financial (NASDAQ:MFIN) Q3 2019 Earnings Conference Call October 31, 2019 9:00 AM ET Company Participants Andrew Murstein - President Alvin Murstein - Chairman & Chief Executive Officer Larry Hall - Chief Financial Officer Conference Call Participants Alex Twerdahl - Sandler O'Neill Scott Buck - B. Riley FBR Mike Grondahl - Northland Securities Operator Good morning, and welcome everyone to Medallion Financial's 2019 Third Quarter Earnings Call. By now everyone should have access to the earnings a ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR For the transition period from to Commission file number 001-37747 MEDALLION FINANCIAL CORP. (Exact Name of Registrant as Specified in Its Charter) DELAWARE 04-3291176 (State of Incorpo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37747 MEDALLION FINANCIAL CORP. (Exact Name of Registrant as Specified in Its Charter) DELAWARE 04-3291176 (State of Incorporatio ...

Medallion Financial (NASDAQ:MFIN) Q2 2019 Results Conference Call August 6, 2019 9:00 AM ET Company Participants Andrew Murstein - President Alvin Murstein - Chairman & CEO Larry Hall - CFO Alex Arzeno - Investor Relations Conference Call Participants Jeffrey Kitsis - Sandler O'Neill Mike Grondahl - Northland Capital Scott Buck - B. Riley Giuliano Bologna - BTIG Operator Good morning. Welcome everyone, to Medallion Financial's 2019 Second Quarter Earnings Call. By now everyone should have access to the ear ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37747 MEDALLION FINANCIAL CORP. (Exact Name of Registrant as Specified in Its Charter) DELAWARE 04-3291176 (St ...

Medallion Financial Corp. (NASDAQ:MFIN) Q1 2019 Results Earnings Conference Call May 7, 2019 9:00 AM ET Company Participants Alvin Murstein - Chairman & CEO Larry Hall - CFO Alex Arzeno - Investor Relations Conference Call Participants Mike Grondahl - Northland Capital Markets Scott Buck - B. Riley Alex Twerdahl - Sandler O'Neill Giuliano Bologna - BTIG Operator Good morning, and welcome, everyone, to Medallion Financial's 2019 First Quarter Earnings Call. By now everyone should have access to the earnings ...

Part I [Our Business](index=3&type=section&id=ITEM%201.%20OUR%20BUSINESS) Medallion Financial Corp. strategically transitioned from taxicab medallion lending to consumer finance, consolidating subsidiaries and adopting Bank Holding Company accounting - Effective April 2, 2018, the company withdrew its BDC election, consolidating subsidiaries and adopting **Bank Holding Company Accounting standards**[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) - The company is strategically transitioning from medallion lending to focus on its growing **consumer finance portfolio**[16](index=16&type=chunk)[222](index=222&type=chunk) Net Loans Receivable by Segment (as of Dec 31, 2018) | Segment | Loans (in thousands) | Allowance for Loan Loss (in thousands) | Net Loans Receivable (in thousands) | | :--- | :--- | :--- | :--- | | Recreation | $ 587,038 | $ 6,856 | $ 580,182 | | Home improvement | $ 183,155 | $ 1,796 | $ 181,359 | | Commercial | $ 64,083 | $ — | $ 64,083 | | Medallion | $ 183,606 | $ 27,743 | $ 155,863 | | **Total** | **$1,017,882** | **$ 36,395** | **$ 981,487** | [Our Market](index=4&type=section&id=Our%20Market) The company's lending activities are segmented into consumer, commercial, and medallion loans, with consumer loans being the largest at 77% of net loans receivable - Consumer loans (recreation and home improvement) grew to **77% of net loans receivable**, totaling **$761.5 million** at December 31, 2018[20](index=20&type=chunk) - Medallion loans decreased to **16% of net loans receivable** (**$155.9 million**) at year-end 2018, down from **28%** (**$388.0 million**) of the managed portfolio at year-end 2017[32](index=32&type=chunk) - Commercial loans constituted **7% of net loans receivable** (**$64.1 million**) as of December 31, 2018[29](index=29&type=chunk) [Our Strategy](index=7&type=section&id=Our%20Strategy) The company's core strategy focuses on leading in profitable niche markets through strong broker relationships, specialized financing, and disciplined underwriting - The company's core philosophy, "In niches there are riches," focuses on profitable markets for industry leadership[42](index=42&type=chunk) - In 2018, **100% of consumer loans** were generated through relationships with brokers and dealers[43](index=43&type=chunk) - The company employs disciplined underwriting and rigorous portfolio monitoring, emphasizing credit and risk analysis[45](index=45&type=chunk) [Loan/Investment Activity](index=9&type=section&id=Loan%2FInvestment%20Activity) Net loans receivable decreased to $981.5 million by year-end 2018 due to sales and losses, with funding diversified across bank loans, SBA debentures, and brokered CDs Loan/Investment Portfolio Activity (in thousands) | Activity | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | Net investments at beginning of year | $1,380,054 | $1,517,592 | $1,501,555 | | Loans/investments originated | $428,510 | $475,465 | $738,238 | | Repayments of loans/investments | ($261,383) | ($270,133) | ($655,071) | | Consumer loans sold to third parties | ($100,920) | ($221,447) | ($97,511) | | Net realized losses on loans/investments | ($42,305) | ($79,264) | ($34,888) | | Net loans receivable/investments at end of year | $981,487 | $1,380,054 | $1,517,592 | Sources of Funds (as of Dec 31, 2018) | Source | Amount Outstanding (in thousands) | Average Interest Rate | | :--- | :--- | :--- | | Bank loans | $ 59,615 | 4.55% | | Preferred securities | $ 33,000 | 4.86% | | Retail notes | $ 33,625 | 9.00% | | SBA debentures and borrowings | $ 80,099 | 3.40% | | Brokered CDs & other funds borrowed | $ 848,040 | 2.14% | | Other borrowings | $ 7,649 | 2.00% | | **Total Debt Outstanding** | **$ 1,062,028** | | [Regulation](index=12&type=section&id=REGULATION) The company operates under extensive regulation, including an exception from the 1940 Act, with Medallion Bank subject to FDIC and Utah DFI oversight, and SBIC subsidiaries regulated by the SBA - The company operates under an exception from the **Investment Company Act of 1940** (Section 3(c)(6)) for banking and specific lending activities[68](index=68&type=chunk) - Medallion Bank is subject to **FDIC and Utah DFI regulation**, including **U.S. Basel III capital rules**, requiring a **Tier 1 leverage ratio of not less than 15%**[69](index=69&type=chunk)[72](index=72&type=chunk)[79](index=79&type=chunk) - Three subsidiaries are licensed as **SBICs** and are subject to **SBA regulations**, including limits on interest rates, investment types, and conflicts of interest[84](index=84&type=chunk)[86](index=86&type=chunk)[89](index=89&type=chunk) [Risk Factors](index=18&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant risks from concentrated consumer lending, declining taxicab medallion values, reliance on brokered deposits, and extensive regulatory oversight - The business is heavily concentrated in consumer lending, making it susceptible to **macroeconomic conditions** and increased regulation[99](index=99&type=chunk) - Increased competition from ridesharing apps has materially impacted the taxicab industry, leading to **reduced medallion values** and **increased loan delinquencies**[106](index=106&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - The company relies on brokered deposits for funding, contingent on Medallion Bank remaining **"well-capitalized"** under FDIC regulations[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - The company operates in a highly regulated environment, with oversight from the **FDIC, Utah DFI, and SBA**, subject to laws like the Dodd-Frank Act[134](index=134&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk) [Properties](index=36&type=section&id=ITEM%202.%20PROPERTIES) The company leases all operational office spaces, including its New York City headquarters and Medallion Bank's Salt Lake City office - The company leases all operational office spaces, including its New York City headquarters (lease expiring April 2027) and Medallion Bank's Salt Lake City office (lease expiring November 2023)[201](index=201&type=chunk) [Legal Proceedings](index=36&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company is involved in routine legal proceedings, with a 2017 stockholder derivative action dismissed with prejudice in December 2018 - A stockholder derivative action (Shields v. Murstein, et al.) filed in 2017 was **dismissed with prejudice** on December 17, 2018[203](index=203&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=37&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's common stock trades on NASDAQ under 'MFIN', with no dividends paid since 2016 and no repurchases in Q4 2018 - The company's common stock is traded on **NASDAQ** under the symbol **"MFIN"**[207](index=207&type=chunk) - No dividends have been paid since **2016**, and the company does not anticipate paying them, retaining earnings for growth[208](index=208&type=chunk) [Selected Financial Data](index=38&type=section&id=ITEM%206.%20SELECTED%20FINANCIAL%20DATA) This section presents consolidated financial data, distinguishing between Bank Holding Company accounting for 9M 2018 and Investment Company accounting for prior periods Selected Financial Data (Bank Holding Company Accounting - 9 Months Ended Dec 31, 2018) | Metric (in thousands, except per share) | Value | | :--- | :--- | | Net interest income | $ 71,987 | | Provision for loan losses | $ 59,008 | | Net loss after taxes | $ (10,172) | | Net loss per share | $ (0.42) | | Total assets | $ 1,381,846 | | Net loans receivable | $ 981,487 | | Total borrowings | $ 1,062,028 | | Total equity | $ 290,204 | Selected Financial Data (Investment Company Accounting) | Metric (in thousands, except per share) | 3 Months Ended Mar 31, 2018 | Year Ended Dec 31, 2017 | Year Ended Dec 31, 2016 | | :--- | :--- | :--- | :--- | | Net investment income (loss) after taxes | $ (3,230) | $ (7,121) | $ 119 | | Net increase (decrease) in net assets | $ (14,874) | $ 278 | $ 23,515 | | Per share increase (decrease) in net assets | $ (0.62) | $ 0.01 | $ 0.97 | | Total assets | $ 616,710 | $ 635,522 | $ 689,377 | | Total shareholders' equity | $ 272,437 | $ 287,159 | $ 286,096 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the strategic shift to consumer finance and accounting changes, reporting a $10.2 million net loss for 9M 2018 due to loan loss provisions - The company's strategic focus is on its growing **consumer finance business** through Medallion Bank, with consumer loans representing **77% of the loan portfolio** as of December 31, 2018[222](index=222&type=chunk) - Effective April 2, 2018, the company changed its accounting from Investment Company to **Bank Holding Company standards**, consolidating subsidiaries like Medallion Bank[228](index=228&type=chunk)[230](index=230&type=chunk) - For the nine months ended December 31, 2018, the company reported a **net loss of $10.2 million**, largely due to a **$59.0 million provision for loan losses**[315](index=315&type=chunk)[316](index=316&type=chunk) - In Q4 2018, the company deconsolidated Taxi Medallion Loan Trust III, resulting in a recorded **gain of $25.3 million**[231](index=231&type=chunk)[318](index=318&type=chunk) [Critical Accounting Policies](index=43&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) Critical accounting policies involve significant judgment for Allowance for Loan Losses and Medallion Loan Collateral Valuation, using historical data and discounted cash flow models - The Allowance for Loan Losses is based on historical loss rates and collateral values, with specific allowances required for **medallion loans 90+ days delinquent**[234](index=234&type=chunk)[236](index=236&type=chunk) - Due to low market activity, taxi medallion collateral is valued using recent market transfers and a **discounted cash flow model**[239](index=239&type=chunk) [Segment Results](index=53&type=section&id=SEGMENT%20RESULTS) For 9M 2018, Recreation Lending was the primary profit driver, while Medallion Lending recorded a significant net loss due to loan loss provisions Segment Net Income (Loss) (9 Months Ended Dec 31, 2018) | Segment | Net Income (Loss) (in thousands) | | :--- | :--- | | Recreation Lending | $ 23,945 | | Home Improvement Lending | $ 3,644 | | Commercial Lending | $ 2,697 | | Medallion Lending | $ (27,565) | | RPAC | $ (3,242) | | Corporate and Other | $ (7,344) | - The Recreation Lending segment accounted for **71% of the company's interest income** for the nine-month period[277](index=277&type=chunk) - The Medallion Lending segment's significant loss was driven by a **$41.4 million provision for loan losses**[294](index=294&type=chunk) [Consolidated Results of Operations](index=61&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated results show a $10.2 million net loss for 9M 2018 under Bank Holding Company accounting, primarily due to loan loss provisions Net Income (Loss) / Change in Net Assets (in thousands) | Period | Accounting Standard | Net Income (Loss) / Change in Net Assets | | :--- | :--- | :--- | | 9 Months Ended 12/31/18 | Bank Holding Company | $ (10,172) | | 3 Months Ended 03/31/18 | Investment Company | $ (14,874) | | Year Ended 12/31/17 | Investment Company | $ 278 | | Year Ended 12/31/16 | Investment Company | $ 23,515 | [Asset/Liability Management](index=65&type=section&id=ASSET%2FLIABILITY%20MANAGEMENT) The company manages interest rate risk with a negative one-year cumulative interest rate gap of $232.3 million, funding operations through diverse debt sources - The company had a **negative one-year cumulative interest rate gap of ($232.3) million**, or **(21%) of interest rate sensitive assets**, as of December 31, 2018[355](index=355&type=chunk)[357](index=357&type=chunk) - A hypothetical immediate **1% increase in interest rates** would result in an estimated annualized **increase to net income of $549,000**[365](index=365&type=chunk)[379](index=379&type=chunk) Total Debt Outstanding by Source (as of Dec 31, 2018) | Source | Balance (in thousands) | Percentage | | :--- | :--- | :--- | | Deposits | $ 848,040 | 80% | | SBA debentures and borrowings | $ 80,099 | 7% | | Notes payable to banks | $ 59,615 | 6% | | Retail notes | $ 33,625 | 3% | | Preferred securities | $ 33,000 | 3% | | Other borrowings | $ 7,649 | 1% | | **Total** | **$1,062,028** | **100%** | [Quantitative and Qualitative Disclosures About Market Risk](index=70&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Primary market risks include interest rate fluctuations and portfolio valuations, with a hypothetical 1% rate increase estimated to raise annualized net income by $549,000 - The principal types of market risk are identified as **fluctuations in interest rates and portfolio valuations**[377](index=377&type=chunk) - A hypothetical immediate **1% increase in interest rates** would increase annualized **net income by approximately $549,000** as of December 31, 2018[379](index=379&type=chunk) [Controls and Procedures](index=71&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2018, with an unqualified audit opinion - Management concluded that **disclosure controls and procedures were effective** as of December 31, 2018[382](index=382&type=chunk) - Management assessed **internal control over financial reporting as effective** as of December 31, 2018, using the COSO framework[386](index=386&type=chunk) - Mazars USA LLP issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting as of December 31, 2018[389](index=389&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=75&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2019 Definitive Proxy Statement - This section is **incorporated by reference** from the company's 2019 Definitive Proxy Statement[397](index=397&type=chunk) [Executive Compensation](index=75&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Information regarding executive compensation is incorporated by reference from the 2019 Definitive Proxy Statement - This section is **incorporated by reference** from the company's 2019 Definitive Proxy Statement[397](index=397&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=75&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Information on security ownership and equity compensation plans is incorporated by reference from the 2019 Definitive Proxy Statement - This section is **incorporated by reference** from the company's 2019 Definitive Proxy Statement[398](index=398&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=75&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Information on related party transactions and director independence is incorporated by reference from the 2019 Definitive Proxy Statement - This section is **incorporated by reference** from the company's 2019 Definitive Proxy Statement[398](index=398&type=chunk) [Principal Accountant Fees and Services](index=75&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Information regarding principal accountant fees and services is incorporated by reference from the 2019 Definitive Proxy Statement - This section is **incorporated by reference** from the company's 2019 Definitive Proxy Statement[399](index=399&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=75&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists the consolidated financial statements, schedules, and various exhibits filed as part of the Form 10-K report - This section contains the **index to the financial statements (F-1)** and a list of all exhibits filed with the Form 10-K[399](index=399&type=chunk)[400](index=400&type=chunk)[401](index=401&type=chunk)

Medallion Financial Corp. (NASDAQ:MFIN) Q4 2018 Results Conference Call February 21, 2019 9:00 AM ET Company Participants Andrew Murstein - President Alvin Murstein - Chairman Larry Hall - CFO Alex Arzeno - Director, IR Conference Call Participants Mike Grondahl - Northland Capital Markets Jeff Kitsis - Sandler O'Neill Scott Buck - B. Riley Giuliano Bologna - BTIG Henry Coffey - Wedbush Operator Good morning and welcome everyone to Medallion Financial's 2018 Fourth Quarter and Full Year Earnings Call. By no ...