Exhibit 99.1 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 Executive Commenta ...

Core Viewpoint - Medallion Financial Corp. reported strong financial results for the first quarter of 2025, highlighting a successful transition away from its legacy taxi medallion lending business and robust performance in consumer and commercial lending sectors [1][3]. Financial Performance - Net income increased by 20% to $12.0 million, or $0.50 per share, compared to $10.0 million, or $0.42 per share, in the same quarter last year [7]. - Net interest income rose by 7% to $51.4 million from $47.9 million in the prior year quarter [7]. - Total interest income grew to $75.4 million, up from $67.1 million in the previous year [23]. - Loan originations reached $281.6 million, compared to $173.1 million in the prior year quarter, with strategic partnership loans accounting for $136.2 million, a significant increase from $15.7 million a year ago [4][7]. Business Segments - The recreation lending segment saw loans grow by 13% to $1.5 billion, representing 62% of total loans, while home improvement loans increased by 8% to $812.4 million, making up 33% of total loans [8]. - The commercial division, Medallion Capital, generated strong equity gains and has contributed $67 million in earnings since its acquisition in 1998 [3]. Dividend and Shareholder Returns - The board of directors declared a quarterly cash dividend of $0.12 per share, an increase from the previous $0.11 per share, payable on May 30, 2025 [5][9]. - The company repurchased 60,185 shares at an average cost of $8.83 per share during the quarter, with $14.9 million remaining under its $40 million stock repurchase program [14]. Credit Quality - Delinquencies in both consumer loan portfolios improved compared to the previous quarter, with the allowance for credit loss at 5.00% for loans held for investment, up from 4.40% a year ago [8][7]. - Credit loss provision increased to $22.0 million from $17.2 million in the prior year quarter [7].

Core Viewpoint - Medallion Bank reported strong performance in Q1 2025, with net income of $15.6 million, an 8% increase from the previous year, despite economic uncertainties affecting demand in recreation and home improvement lending [3]. Financial Performance - Net income for Q1 2025 was $15.6 million, compared to $14.5 million in Q1 2024 [5]. - Net interest income increased to $52.2 million from $48.2 million year-over-year [5]. - The net interest margin slightly decreased to 8.35% from 8.59% in the prior year [5]. - Total provision for credit losses rose to $19.0 million from $17.0 million in the previous year [5]. - Annualized net charge-offs were 3.41% of average loans outstanding, up from 3.38% in the prior year [5]. - Total loan portfolio grew by 6% to $2.2 billion as of March 31, 2025 [5]. - Total assets were reported at $2.5 billion with a Tier 1 leverage ratio of 16.0% [5]. Lending Segments - The recreation loan portfolio grew by 5% to $1.432 billion, while loan originations decreased to $86.8 million from $105.8 million year-over-year [6]. - Delinquencies for recreation loans increased to $68.2 million (4.76%) from $55.5 million (4.06%) in the prior year [6]. - The home improvement loan portfolio grew by 8% to $812.4 million, with loan originations at $48.8 million, down from $51.6 million [6]. - Delinquencies for home improvement loans rose to $8.3 million (1.02%) from $6.5 million (0.87%) year-over-year [6]. Strategic Initiatives - The bank completed an initial sale of $53 million in recreation loans at a premium to par value, indicating a proactive approach to managing its loan portfolio [3]. - The bank continues to monitor the market for potential loan sale opportunities [3]. Preferred Stock Dividend - The Board of Directors declared a quarterly cash dividend of $0.67982 per share on Series F Preferred Stock, with a dividend rate of 10.75761%, payable on July 1, 2025 [7].

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find s ...

NEW YORK, April 17, 2025 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ: MFIN, the “Company”), a specialty finance company that originates and services loans in various consumer and commercial industries, as well as loan products and services offered through fintech strategic partners, announced today that it will report its results for the quarter ended March 31, 2025, after the market closes on Wednesday, April 30, 2025. CONFERENCE CALL AND WEBCAST INFORMATION A conference call to discuss the finan ...

Group 1 - Medallion Bank announced the commencement of the floating rate period for its Series F Preferred Stock on April 1, 2025, with the benchmark rate being three-month CME Term SOFR [1] - The dividend payment rate determination date for the Series F Preferred will be the second U.S. government securities business day preceding the first day of the relevant dividend period [1] - The Series F Preferred trades on the Nasdaq Capital Market under the ticker symbol "MBNKP" [1] Group 2 - Medallion Bank specializes in consumer loans for recreational vehicles, boats, and home improvements, as well as loan origination services for fintech partners [2] - The Bank collaborates with thousands of dealers, contractors, and financial service providers across the United States [2] - Medallion Bank is a Utah-chartered, FDIC-insured industrial bank and a wholly owned subsidiary of Medallion Financial Corp [2]

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on ke ...

PART I [ITEM 1. OUR BUSINESS](index=5&type=section&id=ITEM%201.%20OUR%20BUSINESS) Medallion Financial Corp is a specialty finance company focused on consumer and commercial lending through its regulated subsidiaries - Medallion Financial Corp is a specialty finance company with total assets of **$2.9 billion** as of December 31, 2024, up from **$2.6 billion** in 2023, primarily focused on consumer finance and commercial lending[11](index=11&type=chunk) Loans Receivable by Segment (December 31, 2024) | Segment | Loans ($ thousands) | Allowance for Credit Losses ($ thousands) | Net Loans ($ thousands) | | :--- | :--- | :--- | :--- | | Recreation | 1,422,403 | 71,102 | 1,351,301 | | Home improvement | 827,211 | 20,536 | 806,675 | | Commercial | 111,273 | 5,190 | 106,083 | | Taxi medallion | 1,909 | 540 | 1,369 | | **Total held for investment** | **2,362,796** | **97,368** | **2,265,428** | | Recreation (held for sale) | 120,840 | — | 120,840 | | Strategic partnership (held for sale) | 7,386 | — | 7,386 | | **Total loans** | **2,491,022** | **97,368** | **2,393,654** | - The company's strategy includes capitalizing on relationships with dealers and contractors, focusing on niche industries, employing disciplined underwriting, and seeking strategic acquisitions[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) Key Capital Ratios for Medallion Bank (Minimum vs. Required) | Capital Ratio | Minimum U.S. Basel III Regulatory Capital Ratio Plus Capital Conservation Buffer | | :--- | :--- | | CET1 risk-based capital ratio | 7.0% | | Tier 1 risk-based capital ratio | 8.5% | | Total risk-based capital ratio | 10.5% | [ITEM 1A. RISK FACTORS](index=23&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant risks from its consumer lending concentration, interest rate fluctuations, regulatory challenges, and operational threats - The business is heavily concentrated in consumer lending, making it **highly susceptible to macroeconomic conditions** such as recession, inflation, and rising interest rates[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - The company's ability to originate consumer loans is highly dependent on relationships with a limited number of dealers and contractors, with top ten relationships accounting for **48% of home improvement** and **38% of recreation** new loan originations in 2024[124](index=124&type=chunk) - Medallion Bank relies on brokered deposits for funding and **must maintain 'well-capitalized' status** under FDIC regulations, failure of which would materially impair its operations[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - The company is subject to **pending SEC litigation** for alleged violations of federal securities laws, with a settlement in principle reached that could result in material fines[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - **Cybersecurity threats** pose a significant risk to the company's information and operations, potentially leading to legal liability and reputational damage[171](index=171&type=chunk)[172](index=172&type=chunk) [ITEM 1B. UNRESOLVED STAFF COMMENTS](index=43&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports no unresolved comments from regulatory staff - There are **no unresolved staff comments**[204](index=204&type=chunk) [ITEM 1C. CYBERSECURITY](index=43&type=section&id=ITEM%201C.%20CYBERSECURITY) Cybersecurity risk is managed through an enterprise program overseen by the Audit Committee, with no material financial impact to date - Cybersecurity risks are managed through an enterprise risk management program, overseen by the Audit Committee, with programs guided by the **NIST Cybersecurity Framework**[205](index=205&type=chunk)[206](index=206&type=chunk)[208](index=208&type=chunk) - Cybersecurity programs include employee training, incident response, third-party evaluations, vulnerability scanning, and business continuity mechanisms[206](index=206&type=chunk) - To date, **cyber-attacks have not had a material impact** on the company's financial condition, but the risk remains heightened due to evolving threats[172](index=172&type=chunk)[207](index=207&type=chunk) [ITEM 2. PROPERTIES](index=45&type=section&id=ITEM%202.%20PROPERTIES) The company leases its primary office locations and does not own significant real property - Medallion Financial Corp leases office space for its corporate headquarters in New York City, Medallion Bank in Salt Lake City, and commercial lending in Excelsior, Minnesota[211](index=211&type=chunk) - The company **does not own any real property**, other than foreclosed properties obtained from lending relationships[211](index=211&type=chunk) [ITEM 3. LEGAL PROCEEDINGS](index=45&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company is involved in pending SEC litigation and other legal matters incidental to its business - The company is involved in **pending SEC litigation**, as detailed in Note 10 of the consolidated financial statements[212](index=212&type=chunk) - Management believes that other legal proceedings incident to the normal course of business **will not result in a material adverse impact** on the company's financial condition[563](index=563&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=45&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company's operations - Mine Safety Disclosures are **not applicable** to the registrant[213](index=213&type=chunk) PART II [ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](index=46&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT'S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's common stock trades on NASDAQ, with details on dividends, stock repurchases, and shareholder information provided - Medallion Financial Corp's common stock (MFIN) is quoted on NASDAQ with **23,262,103 shares outstanding** as of March 12, 2025[3](index=3&type=chunk)[215](index=215&type=chunk) - The company reinstated quarterly dividends in March 2022 and **increased the dividend to $0.11 per share** in November 2024[216](index=216&type=chunk) - In 2024, **570,404 shares were repurchased for $4.6 million**, leaving $15,392,299 authorized for future repurchases[218](index=218&type=chunk)[220](index=220&type=chunk) [ITEM 6. [RESERVED]](index=47&type=section&id=ITEM%206.%20%5BRESERVED%5D) This item is intentionally left blank [ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=47&type=section&id=ITEM%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial performance, highlighting loan growth offset by higher credit provisions and interest expenses, resulting in lower net income - Medallion Financial Corp is a specialty finance company with consumer loans representing **95% of its gross loan portfolio** as of December 31, 2024[222](index=222&type=chunk) - Total assets grew to **$2.9 billion** as of December 31, 2024, from **$2.6 billion** as of December 31, 2023[222](index=222&type=chunk) Consolidated Average Balances and Rates (2024 vs. 2023) | Metric | 2024 Average Balance ($ thousands) | 2024 Average Yield/Cost | 2023 Average Balance ($ thousands) | 2023 Average Yield/Cost | | :--- | :--- | :--- | :--- | :--- | | Total interest-earning assets, net of allowance | 2,425,819 | 11.99% | 2,167,433 | 11.58% | | Total interest-bearing liabilities | 2,241,387 | 3.93% | 1,989,589 | 3.16% | | Net interest income | | | | | | Net interest margin, gross | | 8.05% | | 8.38% | - Net income attributable to shareholders **decreased to $35.9 million** ($1.52 per share) for 2024, from **$55.1 million** ($2.37 per share) for 2023[307](index=307&type=chunk) - Total loan originations **increased to $1.0 billion** in 2024 from **$960.1 million** in 2023, driven by recreation and home improvement loans[308](index=308&type=chunk) [ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=70&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks are interest rate fluctuations and the illiquidity of its loan portfolios - The principal market risks are **fluctuations in interest rates** and portfolio valuations[352](index=352&type=chunk) - A hypothetical immediate **1% increase in interest rates** would result in an annualized increase to net income of **$2.2 million**, but a reduction of **$2.7 million** over a one-year period[353](index=353&type=chunk) - The **illiquidity of portions of the loan portfolio** and investments may adversely affect the ability to dispose of them at advantageous times[353](index=353&type=chunk) [ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](index=70&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section incorporates by reference the company's financial statements and supplementary data - Financial statements and supplementary data are **incorporated by reference** from Item 15 (A) (1) of this Annual Report on Form 10-K[354](index=354&type=chunk) [ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](index=70&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reports no changes in or disagreements with its accountants - There are **no changes in or disagreements with accountants** on accounting and financial disclosure[355](index=355&type=chunk) [ITEM 9A. CONTROLS AND PROCEDURES](index=70&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and internal controls over financial reporting were effective as of year-end - The CEO and CFO concluded that **disclosure controls and procedures were effective** as of December 31, 2024, providing reasonable assurance for financial reporting[356](index=356&type=chunk) - Management assessed the effectiveness of internal control over financial reporting using the COSO framework and concluded **it was effective** as of December 31, 2024[360](index=360&type=chunk) - **No material changes** to internal control over financial reporting occurred during the fourth quarter of 2024[362](index=362&type=chunk) - Plante & Moran, PLLC, the independent registered public accounting firm, issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting[366](index=366&type=chunk) [ITEM 9B. OTHER INFORMATION](index=73&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - **No directors or officers** adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the fiscal quarter ended December 31, 2024[373](index=373&type=chunk) [ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](index=73&type=section&id=ITEM%209C.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS) This disclosure is not applicable to the company - Disclosure regarding foreign jurisdictions that prevent inspections is **not applicable**[374](index=374&type=chunk) PART III [ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](index=73&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information regarding directors, officers, and corporate governance is incorporated by reference from the company's Proxy Statement - Information on directors, executive officers, and corporate governance is **incorporated by reference** from the Definitive Proxy Statement for the 2025 Annual Meeting of Shareholders[375](index=375&type=chunk) [ITEM 11. EXECUTIVE COMPENSATION](index=73&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Information regarding executive compensation is incorporated by reference from the company's Proxy Statement - Information on executive compensation is **incorporated by reference** from the Definitive Proxy Statement for the 2025 Annual Meeting of Shareholders[376](index=376&type=chunk) [ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](index=73&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Information regarding security ownership is incorporated by reference from the company's Proxy Statement - Information on security ownership of certain beneficial owners and management, and related stockholder matters is **incorporated by reference** from the Definitive Proxy Statement for the 2025 Annual Meeting of Shareholders[376](index=376&type=chunk) [ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](index=73&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Information regarding related party transactions and director independence is incorporated by reference from the company's Proxy Statement - Information on certain relationships and related transactions, and director independence is **incorporated by reference** from the Definitive Proxy Statement for the 2025 Annual Meeting of Shareholders[377](index=377&type=chunk) [ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES](index=73&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Information regarding principal accountant fees and services is incorporated by reference from the company's Proxy Statement - Information on principal accountant fees and services is **incorporated by reference** from the Definitive Proxy Statement for the 2025 Annual Meeting of Shareholders[377](index=377&type=chunk) PART IV [ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](index=74&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists all financial statements, schedules, and exhibits filed with the annual report - The consolidated financial statements and the Report of Independent Public Accountants are included as set forth on the Index to Financial Statements on F-1[379](index=379&type=chunk) - Exhibits include corporate governance documents, various note purchase agreements, employment agreements for key executives, equity incentive plans, and lease agreements[380](index=380&type=chunk)[381](index=381&type=chunk)[382](index=382&type=chunk) - The section also lists **certifications from the CEO and CFO**, consents of independent registered public accounting firms, and XBRL instance and taxonomy documents[385](index=385&type=chunk) [ITEM 16. FORM 10-K SUMMARY](index=78&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) This item is not applicable to the company - Form 10-K Summary is **not applicable**[384](index=384&type=chunk) SIGNATURES [SIGNATURES](index=79&type=section&id=SIGNATURES) This section contains the certifying signatures of the company's directors and executive officers - The report is signed by Alvin Murstein, Chairman and Chief Executive Officer, and other directors and executive officers, dated **March 13, 2025**[387](index=387&type=chunk)[388](index=388&type=chunk) INDEX TO FINANCIAL STATEMENTS [INDEX TO FINANCIAL STATEMENTS](index=80&type=section&id=INDEX%20TO%20FINANCIAL%20STATEMENTS) This section provides an index to the audited consolidated financial statements and accompanying notes - The index lists the Report of Independent Registered Public Accounting Firm from **Plante & Moran, PLLC** and **Mazars USA LLP**[390](index=390&type=chunk) - It includes the Consolidated Balance Sheets, Statements of Operations, Comprehensive Income, Changes in Stockholders' Equity, and Cash Flows[390](index=390&type=chunk) - Detailed Notes to Consolidated Financial Statements cover significant accounting policies, loans and allowance for credit losses, segment reporting, and other key areas[390](index=390&type=chunk) [Report of Independent Registered Public Accounting Firm (Plante & Moran, PLLC)](index=81&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm%20(Plante%20%26%20Moran%2C%20PLLC)) The firm issued an unqualified opinion on the financial statements and internal controls, identifying credit loss allowances and goodwill as critical audit matters - Plante & Moran, PLLC issued an **unqualified opinion** on the consolidated financial statements as of December 31, 2024, and on the effectiveness of internal control over financial reporting[394](index=394&type=chunk)[395](index=395&type=chunk) - Critical audit matters included the **Allowance for Credit Losses (ACL)** for consumer and commercial loans, due to significant judgment in selecting and applying the ACL methodology[400](index=400&type=chunk)[401](index=401&type=chunk) - Another critical audit matter was **Goodwill impairment testing**, which was complex and highly judgmental due to measurement uncertainty in determining fair value[403](index=403&type=chunk) [Report of Independent Registered Public Accounting Firm (Mazars USA LLP)](index=84&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm%20(Mazars%20USA%20LLP)) The former auditor issued an unqualified opinion on the 2023 consolidated financial statements - Mazars USA LLP, the company's auditor from 2005 to 2024, issued an **unqualified opinion** on the consolidated financial statements as of December 31, 2023[406](index=406&type=chunk)[409](index=409&type=chunk) [Consolidated Balance Sheets](index=85&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $2.87 billion in 2024, driven by an increase in net loans Consolidated Balance Sheet Highlights (Dollars in thousands) | Metric | December 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total assets | $2,868,606 | $2,587,827 | | Total liabilities | $2,429,648 | $2,176,053 | | Total stockholders' equity | $370,170 | $342,986 | | Net loans | $2,265,428 | $2,131,651 | | Allowance for credit losses | $(97,368) | $(84,235) | | Deposits | $2,090,071 | $1,866,657 | - Loans held for sale **increased significantly to $128.2 million** in 2024 from zero in 2023, comprising recreation and strategic partnership loans[411](index=411&type=chunk) [Consolidated Statements of Operations](index=86&type=section&id=Consolidated%20Statements%20of%20Operations) Net income decreased to $35.88 million in 2024 due to higher interest expense and provision for credit losses Consolidated Statements of Operations Highlights (Dollars in thousands) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Total interest income | $290,702 | $251,040 | $196,621 | | Total interest expense | $88,167 | $62,946 | $36,185 | | Net interest income | $202,535 | $188,094 | $160,436 | | Provision for credit losses | $76,502 | $37,810 | $30,059 | | Net income attributable to Medallion Financial Corp | $35,878 | $55,079 | $43,840 | | Basic earnings per share | $1.59 | $2.45 | $1.86 | | Diluted earnings per share | $1.52 | $2.37 | $1.83 | - Total interest income increased due to **continued growth in recreation and home improvement lending** segments and higher rates on new loan originations[308](index=308&type=chunk) - Total interest expense increased due to **higher average borrowings and higher average borrowing costs**, with the average cost of borrowed funds rising to 3.93% in 2024[311](index=311&type=chunk) - A **$3.0 million penalty** was recorded in 2024 pursuant to an agreement in principle to settle SEC litigation[314](index=314&type=chunk) [Consolidated Statements of Other Comprehensive Income](index=87&type=section&id=Consolidated%20Statements%20of%20Other%20Comprehensive%20Income) Total comprehensive income decreased to $35.93 million in 2024, reflecting the decline in net income Consolidated Statements of Other Comprehensive Income Highlights (Dollars in thousands) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net income after taxes | $41,925 | $61,126 | $49,887 | | Other comprehensive income (loss), net of tax | $49 | $(347) | $(4,383) | | Total comprehensive income attributable to Medallion Financial Corp | $35,927 | $54,732 | $39,457 | [Consolidated Statements of Changes in Stockholders' Equity](index=88&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Total equity increased to $438.96 million in 2024, driven by net income and partially offset by dividends and share repurchases Consolidated Statements of Changes in Stockholders' Equity Highlights (Dollars in thousands) | Metric | December 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total stockholders' equity | $370,170 | $342,986 | | Non-controlling interest | $68,788 | $68,788 | | Total equity | $438,958 | $411,774 | | Net income | $35,878 | $55,079 | | Dividends paid on common stock | $(9,505) | $(7,934) | | Treasury stock repurchased | $(4,606) | $(45,538) | | Stock-based compensation expense | $6,053 | $4,713 | | CECL transition amount (Jan 1, 2023) | — | $(9,935) | - The adoption of ASU 2016-13 (CECL) on January 1, 2023, resulted in a net-of-tax cumulative-effect adjustment of **$(9,935) thousand** to the beginning balance of retained earnings[422](index=422&type=chunk) [Consolidated Statements of Cash Flows](index=89&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company experienced a net cash increase of $19.73 million in 2024, with operating cash inflows funding investing activities Consolidated Statements of Cash Flows Highlights (Dollars in thousands) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $115,513 | $113,764 | $108,740 | | Net cash used for investing activities | $(335,778) | $(340,696) | $(449,005) | | Net cash provided by financing activities | $239,992 | $271,179 | $321,379 | | Net increase (decrease) in cash and cash equivalents | $19,727 | $44,247 | $(18,886) | | Cash and cash equivalents, end of period | $169,572 | $149,845 | $105,598 | - Loan originations were **$1,059.24 million** in 2024, with proceeds from principal receipts, sales, and maturities of loans totaling **$701.27 million**[425](index=425&type=chunk) - Proceeds from time deposits and funds borrowed amounted to **$1,322.67 million** in 2024, while repayments were **$1,061.95 million**[425](index=425&type=chunk) [Notes to Consolidated Financial Statements](index=90&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, financial instruments, segment reporting, and contingencies

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation m ...

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]