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Financial Data and Key Metrics Changes - For Q4 2024, the company reported net income of $10.1 million and earnings per share of $0.43, marking the highest quarterly net income for the year [7] - Full year net income reached $35.9 million with earnings per share of $1.52, reflecting a successful year overall [7] - Net interest income grew 6% year-over-year to $52 million for the quarter and increased 8% for the full year to $202.5 million [23][24] - The net interest margin on gross loans was 7.84% for the quarter, down from the previous year [24][25] Business Line Data and Key Metrics Changes - Recreation lending originated $72 million in new loans for Q4, up from $63 million in Q4 2023, with total outstanding recreation loans at $1.5 billion, a year-over-year increase of $207 million [13][14] - Home improvement lending segment originated $83 million in loans during the quarter, with total loans up 9% year-over-year to $827 million [15] - Commercial lending segment ended the year with $111 million in loans, with an average interest rate of 12.97% [17] Market Data and Key Metrics Changes - The average interest rate for recreation loans was 15.07%, up 28 basis points year-over-year, while home improvement loans had an average interest rate of 9.81%, up 30 basis points [15][16] - Total loans outstanding increased 12% year-over-year to $2.5 billion, comprising recreation, home improvement, and commercial loans [27] Company Strategy and Development Direction - The company aims to maintain prudent growth in its lending businesses while keeping credit standards at current levels [60] - A strategic partnership program has led to significant growth in loan volumes, increasing from $40 million in Q3 to $124 million in Q4 [18] - The company has increased its quarterly dividend by 10% to $0.11, reflecting confidence in future performance [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that Q4 typically sees seasonal highs in delinquencies and charge-offs, but recent vintages are performing better due to tightened credit standards [39][40] - The company anticipates loan growth in 2025 to be in the mid to high single digits, which is lower than previous years but appropriate given current earnings [52] - Management expressed confidence in the company's future and commitment to shareholder value through growth, dividends, and opportunistic buybacks [60][61] Other Important Information - The company reported a provision for credit loss of $20.6 million for the quarter, reflecting an increase from the previous year [28] - Operating expenses for the quarter were $17.2 million, down from the prior quarter, but management expects expenses to rise due to growth initiatives [29][55] Q&A Session Summary Question: Why is the company selling the $121 million of recreation loans? - The company is selling due to stronger than anticipated volume and to provide additional funding options, with a potential closing in 30 to 60 days [36][37] Question: What is the outlook on credit quality and delinquency levels? - Management indicated that Q4 typically sees seasonal highs in delinquencies, but recent loans are performing better due to tightened credit standards [39][40] Question: What are the expectations for margins in 2025? - Management is hesitant to call a bottom for margins but expects to see some stability, with new originations at rates above current averages [48][50] Question: What is the outlook for loan growth in 2025? - The company expects loan growth to be in the mid to high single digits, which is lower than past years but appropriate given the current loan book size [52] Question: What should be expected for operating expenses going forward? - Operating expenses are expected to be around $21 to $21.5 million per quarter, higher than previous levels due to growth and initiatives [55]

Core Viewpoint - Medallion Financial (MFIN) reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, but down from $0.60 per share a year ago, indicating a 30.30% earnings surprise [1][2] Financial Performance - The company achieved revenues of $56.25 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.52% and up from $52.01 million year-over-year [2] - Over the last four quarters, Medallion Financial has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance - Medallion Financial shares have declined approximately 13.7% since the beginning of the year, contrasting with the S&P 500's decline of only 0.5% [3] Future Outlook - The company's earnings outlook is mixed, with the current consensus EPS estimate for the upcoming quarter at $0.34 on revenues of $54.45 million, and $1.61 on revenues of $230.02 million for the current fiscal year [7] - The Zacks Rank for Medallion Financial is currently 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Medallion Financial belongs, is currently in the top 33% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Financial Performance - Net income for Q4 2024 was $10.1 million, or $0.43 per share, down from $14.3 million, or $0.60 per share in Q4 2023, with taxi medallion recoveries contributing $1.3 million compared to $12.5 million in the prior year quarter [8]. - Full-year net income was $35.9 million, or $1.52 per share, compared to $55.1 million, or $2.37 per share in the previous year, including $6.9 million of taxi medallion recoveries versus $29.6 million in the prior year [8]. - Total net income attributable to Medallion Financial Corp. for Q4 2024 was $10,142,000, a decrease of 29.5% from $14,318,000 in Q4 2023 [22]. - Basic net income per share for Q4 2024 was $0.45, down from $0.63 in Q4 2023, representing a decline of 28.6% [22]. Loan Originations and Growth - Loan originations for the full year reached $1.0 billion, a 4% increase from $960.0 million in the previous year, with Q4 originations growing 69% to $285.7 million from $169.1 million [8]. - Total loans, including loans held for sale, increased 12% to $2.5 billion as of December 31, 2024, compared to $2.2 billion a year ago [8]. - The recreation loans segment saw a 15% growth to $1.5 billion, representing 62% of total loans, while home improvement loans grew 9% to $827.2 million, accounting for 33% of total loans [12]. Interest Income and Expenses - Net interest income for Q4 2024 grew 6% to $52.0 million from $49.0 million in Q4 2023, while full-year net interest income increased 8% to $202.5 million from $188.1 million [8]. - Total interest income for Q4 2024 was $76,519,000, an increase of 13.7% from $67,585,000 in Q4 2023 [22]. - Total interest expense increased to $24,507,000 in Q4 2024, up 32.1% from $18,567,000 in Q4 2023 [22]. Credit Loss Provisions - The company recorded a credit loss provision of $20.6 million in Q4 2024, up from $10.8 million in the prior year quarter, and a total of $76.5 million for the full year, compared to $37.8 million in the previous year [8]. - Provision for credit losses increased significantly to $20,572,000 in Q4 2024, compared to $10,764,000 in Q4 2023, reflecting a 90.5% rise [22]. - Net interest income after provision for credit losses decreased to $31,440,000 in Q4 2024, down 17.7% from $38,254,000 in Q4 2023 [22]. Dividends and Share Repurchase - The Board of Directors declared a quarterly dividend of $0.11 per share, a 10% increase from the previous dividend [8]. - Dividends declared per common share increased to $0.11 in Q4 2024, compared to $0.10 in Q4 2023, marking a 10% increase [22]. - The company repurchased 570,404 shares of common stock at an average cost of $8.07 per share during the year, totaling $4.6 million [8]. Total Assets and Other Income - Total assets grew to $2.9 billion as of December 31, 2024, an 11% increase from $2.6 billion a year ago [8]. - Total other income, net for the year ended December 31, 2024, was $11,330,000, slightly up from $11,320,000 in 2023 [22]. Other Expenses and Income Tax - Total other expenses decreased to $17,213,000 in Q4 2024, down 9.8% from $19,084,000 in Q4 2023 [22]. - Income tax provision for Q4 2024 was $6,815,000, slightly up from $6,328,000 in Q4 2023, indicating an increase of 7.7% [22].

Core Insights - Medallion Financial Corp. reported its financial results for the fourth quarter and full year ended December 31, 2024, highlighting a strong performance in loan originations and net interest income [1][4][8]. Fourth Quarter Highlights - Net income for Q4 2024 was $10.1 million, or $0.43 per share, down from $14.3 million, or $0.60 per share, in Q4 2023 [8]. - Net interest income increased by 6% to $52.0 million from $49.0 million in the prior year quarter [8]. - Loan originations grew significantly by 69% to $285.7 million compared to $169.1 million in the prior year quarter [8]. - The credit loss provision rose to $20.6 million from $10.8 million in the prior year quarter [8]. - The Board of Directors declared a quarterly dividend of $0.11 per share, a 10% increase from the previous quarter [8][11]. Full-Year Highlights - For the full year 2024, net income was $35.9 million, or $1.52 per share, compared to $55.1 million, or $2.37 per share, in 2023 [8]. - Total interest income for the year grew to $290.7 million from $251.0 million in the prior year [26]. - Loan originations surpassed $1 billion for the first time in the company's history, with over half being high-yield recreation loans [4][8]. - Total assets increased by 11% to $2.9 billion as of December 31, 2024, compared to $2.6 billion a year ago [8][21]. Business Segment Highlights - The recreation lending segment saw a 15% growth in loans, reaching $1.5 billion, which constituted 62% of total loans [15]. - Home improvement loans grew by 9% to $827.2 million, representing 33% of total loans [15]. - The commercial lending segment reported loans of $111.3 million, slightly down from $114.8 million a year ago [15]. Equity and Stock Repurchase - The company repurchased 570,404 shares of common stock at an average cost of $8.07 per share during the year, totaling $4.6 million [8][12]. - As of December 31, 2024, the company had $15.4 million remaining under its $40 million share repurchase program [12]. Legal and Regulatory Matters - The company recorded a charge of $3.0 million related to a pending SEC settlement and recognized a $5.5 million benefit from insurance coverage for legal costs [6][8].

Core Viewpoint - Medallion Financial Corp. will report its financial results for the quarter and full-year ended December 31, 2024, on March 4, 2025, after market close [1] Group 1: Financial Reporting - The financial results announcement is scheduled for March 4, 2025 [1] - A conference call to discuss these results will take place on March 5, 2025, at 9:00 a.m. Eastern time [3][9] - The live audio webcast of the conference call will be accessible on the Company's investor relations website [4] Group 2: Investor Relations - Management will host individual meetings with portfolio managers and analysts after the earnings conference call to enhance relations with institutional investors [7] - Interested parties can schedule meetings by contacting the investor relations team [7] Group 3: Company Overview - Medallion Financial Corp. specializes in originating and servicing consumer and mezzanine loans across various industries, including recreation and home improvement [8] - The Company operates through fintech strategic partners and is headquartered in New York City, with its largest subsidiary, Medallion Bank, located in Salt Lake City, Utah [8]

Core Insights - Medallion Bank reported solid financial performance for the fourth quarter and full year of 2024, with quarterly earnings of $15.6 million and net interest income exceeding $53 million [4][6]. 2024 Fourth Quarter Highlights - Quarterly net income was $15.6 million, down from $21.9 million in the same quarter of the previous year [6]. - Net interest income for the quarter was $53.1 million, compared to $48.9 million in the prior year quarter [6]. - The bank's total provision for credit losses was $20.5 million, significantly higher than $9.7 million in the prior year quarter [6]. - Annualized net charge-offs were 3.28% of average loans outstanding, up from 1.04% in the prior year quarter [6]. - The recreation loan portfolio grew 15% to $1.543 billion as of December 31, 2024 [7]. 2024 Full-Year Highlights - Full-year net income was $60.6 million, down from $79.9 million in 2023 [6]. - Total net interest income for the year was $204.7 million, compared to $188.9 million in 2023 [6]. - The total provision for credit losses for the year was $75.8 million, compared to $36.5 million in 2023 [6]. - The total loan portfolio grew by 13% to $2.4 billion [6]. - The bank's total assets reached $2.5 billion, with total capital at $382.4 million as of December 31, 2024 [6]. Recreation Lending Segment - Loan originations in the recreation lending segment were $72.2 million in the fourth quarter, compared to $62.7 million in the prior year quarter [7]. - For the year, recreation loan originations totaled $526.6 million, up from $447.0 million in 2023 [7]. - Annualized net charge-offs for recreation loans were 4.35% in the fourth quarter, compared to 4.23% in the prior year quarter [7]. Home Improvement Lending Segment - The home improvement loan portfolio grew 9% to $827.2 million as of December 31, 2024 [11]. - Loan originations for home improvement loans were $82.5 million in the fourth quarter, compared to $66.0 million in the prior year quarter [11]. - The provision for home improvement credit losses was $4.4 million in the fourth quarter, down from $6.9 million in the prior year quarter [11]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.50 per share on the Bank's Series F Preferred Stock, payable on April 1, 2025 [8].

Core Viewpoint - The SEC lawsuit against Medallion Financial Corp. (MFIN) and its COO Andrew Murstein is nearing resolution, with increasing pressure on the defendants to settle and implement governance changes to restore investor confidence [1][2][4]. Legal Proceedings - Judge Lewis Kaplan denied the majority of MFIN and Murstein's motion to dismiss the SEC lawsuit, which alleges inflated asset values, fraud, and other violations [2]. - A co-defendant, Larry Meyers, has reached a settlement with the SEC, potentially leaving MFIN and Murstein to face the charges alone [2]. - The SEC has indicated progress in settlement discussions with MFIN and Murstein, with a deadline set for February 25, 2025, to finalize any agreements [2]. Financial Implications - MFIN has reportedly spent approximately $8 million in legal fees defending Murstein, which has negatively impacted the company's credibility and valuation [3][4]. - The SEC-related legal fees for MFIN totaled $18.9 million in 2022 and 2023, significantly above historical averages [16]. Governance Recommendations - ZimCal Asset Management has proposed several governance changes to MFIN's board, including declassifying the board, separating the roles of chairperson and CEO, and appointing an independent director as chairperson [5]. - Other recommendations include establishing a mandatory retirement age for board members, reducing family control on the board, and initiating an independent investigation into Murstein's behavior [5][6]. Accountability Measures - ZimCal has urged MFIN to enforce its own policies regarding accountability for executive conduct, particularly in light of the SEC lawsuit [6][7]. - The company's Compensation Recoupment Policy, which allows for clawback of compensation in cases of financial restatement or detrimental conduct, has been called into question due to recent changes that appear to protect Murstein [7]. Strategic Focus - ZimCal emphasizes the need for MFIN to resolve the SEC lawsuit as a critical first step towards improving the company's governance and restoring shareholder value [8].

Financial Performance - Total assets were $2.9 billion, an increase from $2.6 billion as of December 31, 2023[96]. - Total interest income for the nine months ended September 30, 2024, was $142.9 million, up from $123.3 million in the prior year[131]. - Net income after taxes for the nine months ended September 30, 2024, was $19.6 million, down from $33.0 million in the prior year[131]. - Total revenue for the three months ended September 30, 2023, was $1,854,000, compared to $6,370,000 in the same period in 2022, representing a decrease of 70.0%[121]. - Net income after taxes for the three months ended September 30, 2024, was $455,000, a significant improvement from a net loss of $2,525,000 in the same period of 2023[143]. Loan Portfolio - Consumer loans represented 95% of the gross loan portfolio, while commercial loans accounted for 4%[96]. - Total loans reached $2,445,886 thousand, an increase of 11.87% compared to $2,185,808 thousand in the previous year[103]. - Total loans reached $2,319,136, with a yield of 12.02% for the nine months ended September 30, 2024, compared to $2,065,650 and 11.62% for the same period in 2023[107]. - The company originated $454.4 million in recreation loans during the nine months ended September 30, 2024, compared to $384.3 million in the prior year period[127]. - The commercial lending segment originated $7,000,000 in new commercial loans during the nine months ended September 30, 2024, a decrease of 58% compared to $16,700,000 in the same period of 2023[136]. Credit Losses and Allowances - The allowance for credit losses on loans increased to $77.6 million post-ASC 326 adoption[99]. - The provision for credit losses for the three months ended September 30, 2024, was $20.2 million, up from $14.5 million in the same period of 2023, reflecting an increase of approximately 39.3%[114]. - The allowance for credit losses as of September 30, 2024, was $96.5 million, representing 3.88% of total loans, compared to $84.2 million or 3.80% of total loans as of December 31, 2023[114]. - Total charge-offs for the three months ended September 30, 2024, were $20,500 thousand, compared to $15,574 thousand for the same period in 2023, representing a 31.1% increase[116]. - The total charge-offs for the nine months ended September 30, 2024, reached $62,189 thousand, compared to $46,533 thousand in 2023, reflecting a year-over-year increase of 33.6%[116]. Interest Income and Expenses - Net interest income for the three months ended September 30, 2024, was $52,737 thousand, compared to $48,784 thousand for the same period in 2023[103]. - Interest income increased due to growth in consumer loan portfolios and higher yields on interest-earning assets[111]. - Interest expense rose primarily from increased borrowing costs linked to higher deposits and total borrowings[111]. - The average yield on interest-earning assets was 12.17%, compared to 11.66% in the previous year[103]. - The average cost of interest-bearing liabilities increased to 4.05%, up from 3.28% year-over-year[103]. Strategic Initiatives - The Bank launched a strategic partnership program with fintech companies in 2019, continuing to evaluate additional partnerships[96]. - The company is considering various alternatives for the Bank, including a potential initial public offering or sale[96]. - The company continues to seek SBA funding through Medallion Capital for attractive rates[111]. - The company is exploring various financing options, including the sale or spinoff of certain assets, to enhance liquidity and support growth[153]. Economic Factors - The company continues to monitor economic factors such as global supply chain disruptions and inflation that may affect loan demand[96]. - The Federal Reserve's decision to decrease interest rates by 50 basis points in September 2024 may impact both loan origination rates and the cost of new borrowings[108]. - The company expects the cost of funds to continue increasing as new certificates of deposit are issued to replace maturing ones, influenced by prevailing market interest rates[108]. Asset Management - Total stockholders' equity increased to $356,561 thousand, compared to $322,945 thousand, reflecting a growth of 10.43%[103]. - Total liabilities rose to $2,261,667, compared to $2,022,455 in the prior year, reflecting growth in the lending business[107]. - The company has a total cash balance of $187,929,000 as of September 30, 2024, compared to $149,845,000 on December 31, 2023[155]. - The total outstanding debt was $2.4 billion, with deposits making up 88% of this amount at an average rate of 3.68%[151]. Market Presence - The company reported a total of 315 taxi medallions in the New York City market as of September 30, 2024, indicating ongoing market presence[124]. - The company has identified a need for adjustments in collateral valuation due to the short-term nature of the liquidation process for recreational loans[124].

: :Dil FINTECH 3rd Quarter 2024 Earnings Supplement - October 29, 2024 Safe Harbor Information This presentation contains certain forward-looking statements, including statements with regard to the future performance of Medallion Financial Corp. ("MFIN" or the "Company"). Words such as "believes," "expects," "projects," "anticipates" and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on information available to us at the time o ...