Medallion Financial (MFIN) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this business development company would post earnings of $0.61 per share when it actually produced earnings of $0.60, delivering a surprise of -1.64%.Over the last four ...

Exhibit 99.1 FOR IMMEDIATE RELEASE: MEDALLION FINANCIAL CORP. REPORTS 2024 FIRST QUARTER RESULTS NEW YORK, NY – April 30, 2024 – 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, 2024. 2024 First Quarter Highlights Executive Commentary – Andre ...

NEW YORK, April 23, 2024 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ:MFIN, "Medallion Financial" or the "Company"))), a finance company that originates and services loans in various consumer and commercial industries, along with offering loan products and services through fintech strategic partners, announced today that it will report its 2024 first quarter results for the quarter ended March 31, 2024, after the market closes on Tuesday, April 30, 2024. CONFERENCE CALL AND WEBCAST INFORMATION A co ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2023 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 Incorporation) ( ...

Medallion Financial Corp. (NASDAQ:MFIN) Q4 2023 Earnings Conference Call February 21, 2024 9:00 AM ET Company Participants Ken Cooper - Investor Relations Andrew Murstein - President and Chief Operating Officer Anthony Cutrone - Chief Financial Officer Conference Call Participants Christopher Nolan - Ladenburg Thalmann Mike Grondahl - Northland Securities Matthew Howlett - B. Riley Securities Operator Good morning, and welcome to the Medallion Financial Corporation Fourth Quarter and Full Year 2023 Earnings ...

[Company Overview and Executive Summary](index=1&type=section&id=Company%20Overview%20and%20Executive%20Summary) The company reports record 2023 earnings driven by strong performance across all business segments [Company Profile and Announcement](index=1&type=section&id=Company%20Profile%20and%20Announcement) Medallion Financial Corp announces its Q4 and full-year 2023 financial results - Medallion Financial Corp (MFIN) is a specialty finance company focused on originating and servicing consumer and commercial loans, and providing loan origination services to fintech strategic partners[2](index=2&type=chunk) [Executive Commentary](index=1&type=section&id=Executive%20Commentary) The company achieved record annual earnings in 2023 and highlights significant growth over the past three years - 2023 marked the **highest annual total earnings and highest annual earnings per share** in the company's history, with contributions from all business segments[5](index=5&type=chunk) - Over the past three years, Medallion Financial Corp generated **$153 million in earnings**, returned **$36 million to shareholders** through dividends and stock repurchases, and increased loans by **80%**[5](index=5&type=chunk) [Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) The company reports significant year-over-year growth in net income for both Q4 and the full-year 2023 [Fourth Quarter 2023 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%202023%20Financial%20Highlights) Net income increased 9.2% in Q4 2023, driven by higher net interest income and a dividend increase Fourth Quarter 2023 Key Financial Highlights | Metric | Q4 2023 | Q4 2022 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net income | $14.3M | $13.1M | +9.2% | | EPS | $0.60 | $0.57 | +5.3% | | Net interest income | $49.0M | $43.6M | +12.4% | | Net interest margin (net loans) | 8.50% | 8.86% | -0.36 pp | | Net interest margin (gross loans) | 8.20% | 8.59% | -0.39 pp | | Loan originations | $169.1M | $191.9M | -11.9% | | Credit loss provision | $10.8M | $9.0M | +20.0% | | Quarterly dividend per share | $0.10 | $0.08 (Q3 2023) | +25% | - The credit loss provision for Q4 2023 included a **net benefit of $12.1 million** related to taxi medallion recoveries[6](index=6&type=chunk) [Full-Year 2023 Financial Highlights](index=1&type=section&id=Full-Year%202023%20Financial%20Highlights) Full-year net income grew 25.8%, supported by increased net interest income and loan portfolio expansion Full-Year 2023 Key Financial Highlights | Metric | FY 2023 | FY 2022 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net income | $55.1M | $43.8M | +25.8% | | EPS | $2.37 | $1.83 | +29.5% | | Net interest income | $188.1M | $160.4M | +17.3% | | Net interest margin (net loans) | 8.68% | 9.05% | -0.37 pp | | Net interest margin (gross loans) | 8.38% | 8.73% | -0.35 pp | | Loan originations | $960.0M | $983.9M | -2.4% | | Loans | $2.2B | $1.9B | +15.8% | | Credit loss provision | $37.8M | $30.1M | +25.6% | | Total assets | $2.6B | $2.26B | +15.0% | - The full-year credit loss provision included a **net benefit of $26.3 million** related to taxi medallion recoveries[6](index=6&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) The report details the performance of the Recreation, Home Improvement, Commercial, and Taxi Medallion lending segments [Recreation Lending Segment](index=2&type=section&id=Recreation%20Lending%20Segment) The recreation loan portfolio grew to $1.3 billion despite a decrease in Q4 originations Recreation Lending Segment Performance (Q4 2023 vs. Q4 2022) | Metric | Q4 2023 | Q4 2022 | Change (YoY) | | :--- | :--- | :--- | :--- | | Originations | $62.7M | $79.3M | -20.9% | | Recreation loans (year-end) | $1.3B | $1.2B | +8.3% | | % of total loans | 60% | 62% | -2 pp | | Net interest income (Q4) | $35.2M | $32.7M | +7.6% | | Average interest rate (year-end) | 14.79% | 14.28% | +0.51 pp | | Loans 90+ days past due | 0.70% | 0.64% | +0.06 pp | | Allowance for credit loss rate | 4.31% | 3.55% | +0.76 pp | [Home Improvement Lending Segment](index=2&type=section&id=Home%20Improvement%20Lending%20Segment) The home improvement loan portfolio expanded 21% year-over-year to $760.6 million Home Improvement Lending Segment Performance (Q4 2023 vs. Q4 2022) | Metric | Q4 2023 | Q4 2022 | Change (YoY) | | :--- | :--- | :--- | :--- | | Originations | $66.0M | $97.1M | -32.0% | | Home improvement loans (year-end) | $760.6M | $626.4M | +21.4% | | % of total loans | 34% | 33% | +1 pp | | Net interest income (Q4) | $11.7M | $10.1M | +15.8% | | Average interest rate (year-end) | 9.51% | 8.65% | +0.86 pp | | Loans 90+ days past due | 0.20% | 0.09% | +0.11 pp | | Allowance for credit loss rate | 2.76% | 1.81% | +0.95 pp | [Commercial Lending Segment](index=2&type=section&id=Commercial%20Lending%20Segment) The commercial loan portfolio grew 23.6% to $114.8 million with a higher average interest rate Commercial Lending Segment Performance (Year-End 2023 vs. 2022) | Metric | FY 2023 | FY 2022 | Change (YoY) | | :--- | :--- | :--- | :--- | | Commercial loans (year-end) | $114.8M | $92.9M | +23.6% | | Average interest rate (year-end) | 12.87% | 12.23% | +0.64 pp | [Taxi Medallion Lending Segment](index=2&type=section&id=Taxi%20Medallion%20Lending%20Segment) Significant cash recoveries from taxi medallions reduced net assets by 51% to less than 0.5% of total assets - Collected **$16.2 million cash** on taxi medallion related assets during Q4 2023 and **$45.2 million for the full year**[8](index=8&type=chunk) - Net recoveries from taxi medallions contributed **$0.33 per share for Q4** and **$0.93 per share for the full year**[8](index=8&type=chunk) Taxi Medallion Assets (Year-End 2023 vs. 2022) | Metric | FY 2023 | FY 2022 (implied) | Change (YoY) | | :--- | :--- | :--- | :--- | | Total net taxi medallion assets | $12.1M | $24.7M | -51% | | % of total assets | <0.5% | N/A | N/A | [Capital Allocation and Dividends](index=2&type=section&id=Capital%20Allocation%20and%20Dividends) The company announced a 25% increase in its quarterly cash dividend [Quarterly Dividend Declaration](index=2&type=section&id=Quarterly%20Dividend%20Declaration) The Board of Directors declared a 25% increased quarterly dividend of $0.10 per share - The Board of Directors increased the quarterly dividend by **25% to $0.10 per share**, payable on March 28, 2024, to shareholders of record on March 15, 2024[6](index=6&type=chunk)[9](index=9&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The consolidated balance sheets and statements of operations show year-over-year growth in assets, equity, and net income [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew 14.5% to $2.59 billion, driven by a 15.0% increase in net loans receivable Consolidated Balance Sheet Highlights (as of December 31) | Metric (in thousands) | 2023 | 2022 | Change (YoY) | | :--- | :--- | :--- | :--- | | Cash, cash equivalents, and federal funds sold | $149,845 | $105,598 | +41.9% | | Net loans receivable | $2,131,651 | $1,853,108 | +15.0% | | Total assets | $2,587,827 | $2,259,879 | +14.5% | | Deposits | $1,866,657 | $1,607,110 | +16.1% | | Long-term debt | $235,544 | $214,320 | +9.9% | | Total liabilities | $2,176,053 | $1,889,355 | +15.2% | | Total stockholders' equity | $342,986 | $301,736 | +13.7% | | Book value per share | $14.63 | $13.08 | +11.9% | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Full-year net income rose 25.6% to $55.1 million, primarily due to a 17.2% increase in net interest income Consolidated Statements of Operations Highlights (Years Ended December 31) | Metric (in thousands) | 2023 | 2022 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total interest income | $251,040 | $196,621 | +27.7% | | Total interest expense | $62,946 | $36,185 | +73.9% | | Net interest income | $188,094 | $160,436 | +17.2% | | Provision for credit losses | $37,810 | $30,059 | +25.8% | | Total other income, net | $11,320 | $9,526 | +18.8% | | Total other expenses | $75,568 | $72,053 | +4.9% | | Income before income taxes | $86,036 | $67,850 | +26.8% | | Income tax provision | $24,910 | $17,963 | +38.7% | | Total net income attributable to Medallion Financial Corp | $55,079 | $43,840 | +25.6% | | Diluted net income per share | $2.37 | $1.83 | +29.5% | | Dividends declared per common share | $0.34 | $0.32 | +6.3% | [Additional Information](index=2&type=section&id=Additional%20Information) This section provides details on the upcoming investor conference call and outlines forward-looking statements [Conference Call and Investor Information](index=2&type=section&id=Conference%20Call%20and%20Investor%20Information) Details for the Q4 and full-year 2023 results conference call on February 21, 2024 are provided - A conference call to discuss fourth quarter and full-year financial results is scheduled for **Wednesday, February 21, 2024, at 9:00 a.m. Eastern time**[10](index=10&type=chunk)[14](index=14&type=chunk) - The company has updated its quarterly supplement presentation, available at www.medallion.com[10](index=10&type=chunk) - A webcast replay will be available on the Company's IR website until the next quarter's results are announced[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements subject to risks and uncertainties detailed in the Form 10-K - The press release contains forward-looking statements involving risks and uncertainties related to business performance, cash flow, net interest income and expenses, earnings, and growth strategy[13](index=13&type=chunk) - Actual results may differ significantly from forward-looking statements due to factors such as the current economy, inflation, risk of recession, and the impact of **pending SEC litigation**[13](index=13&type=chunk) - Readers are advised to refer to the **'Risk Factors' section in Medallion's 2022 Annual Report on Form 10-K** for a description of certain risks[13](index=13&type=chunk)

OR ☐ 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, 2023 For the transition period from to Commission file number 001-37747 MEDALLION FINANCIAL CORP. (Exact Name of Registrant as Specified in Its Charter) (State of Incorporation) (IRS Employe ...

ION 3RD QUARTER 2023 EARNINGS SUPPLEMENT October 30, 2023 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 of this presen ...

PART I – FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents unaudited consolidated financial statements for Q2 and H1 2023, detailing balance sheets, operations, and cash flows, showing **$2.52 million** in total assets and increased net income Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Assets | $2,519,137 | $2,259,879 | | Net Loans Receivable | $2,082,027 | $1,853,108 | | Total Deposits | $1,813,785 | $1,607,110 | | Total Equity | $387,764 | $370,524 | Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | 6 Months 2023 | 6 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $46,691 | $38,881 | $90,293 | $74,809 | | Net Income to Medallion Financial | $14,170 | $13,300 | $29,531 | $23,141 | | Diluted EPS | $0.62 | $0.54 | $1.29 | $0.93 | - Net cash provided by operating activities was **$58.3 million** for the six months ended June 30, 2023, up from **$51.4 million** in the prior-year period, while net cash used for investing activities increased to **$265.3 million** primarily due to higher loan originations[32](index=32&type=chunk) [Loans and Allowance for Credit Losses](index=17&type=section&id=(4)%20LOANS%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) The gross loan portfolio grew to **$2.16 million**, primarily in Recreation and Home Improvement, with CECL adoption increasing the allowance for credit losses to **$75.0 million** - On January 1, 2023, the company adopted the CECL methodology (ASC 326), resulting in a **$13.7 million** increase to its allowance for credit losses and a **$9.9 million** net-of-tax reduction to retained earnings[58](index=58&type=chunk) Gross Loan Portfolio Composition (in thousands) | Loan Category | June 30, 2023 | % of Total | | :--- | :--- | :--- | | Recreation | $1,331,114 | 62% | | Home improvement | $728,468 | 34% | | Commercial | $92,637 | 4% | | Medallion & Other | $4,779 | <1% | | **Total Gross Loans** | **$2,156,998** | **100%** | Allowance for Credit Losses Activity - YTD (in thousands) | Description | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Beginning Balance | $63,845 | $50,166 | | CECL Transition Amount | $13,712 | - | | Net Charge-offs | ($15,100) | ($2,013) | | Provision for Credit Losses | $12,514 | $10,999 | | **Ending Balance** | **$74,971** | **$59,152** | [Funds Borrowed](index=23&type=section&id=(5)%20FUNDS%20BORROWED) Total funds borrowed increased to **$2.06 million**, primarily from deposits, with a new **$28.0 million** Federal Reserve discount window line established in March 2023 Outstanding Funds Borrowed (in thousands) | Borrowing Type | June 30, 2023 | Interest Rate | | :--- | :--- | :--- | | Deposits | $1,815,943 | 2.70% | | Privately placed notes | $121,000 | 7.66% | | SBA debentures and borrowings | $66,880 | 3.13% | | Federal reserve discount window | $28,000 | 5.25% | | Preferred securities | $33,000 | 7.62% | - In March 2023, Medallion Bank established a discount window line of credit with the Federal Reserve, with **$28.0 million** utilized out of a total capacity of **$38.7 million** as of quarter-end[111](index=111&type=chunk) [Segment Reporting](index=28&type=section&id=(9)%20SEGMENT%20REPORTING) Recreation and Home Improvement lending segments drive interest income and asset growth, with Recreation generating **$11.1 million** and Home Improvement **$2.2 million** in Q2 2023 net income Segment Net Income After Taxes - Q2 2023 (in thousands) | Segment | Q2 2023 Net Income | Total Assets | | :--- | :--- | :--- | | Recreation Lending | $11,083 | $1,294,925 | | Home Improvement Lending | $2,204 | $718,383 | | Commercial Lending | $942 | $99,713 | | Medallion Lending | $4,900 | $18,724 | | Corporate and Other Investments | ($3,447) | $387,392 | - The Recreation lending segment's loan portfolio is concentrated in Texas (**15%**) and Florida (**10%**), with RVs and boats making up **59%** and **19%** of the portfolio, respectively[145](index=145&type=chunk) [Commitments and Contingencies](index=31&type=section&id=(10)%20COMMITMENTS%20AND%20CONTINGENCIES) The company faces ongoing material litigation with the SEC, filed in December 2021, regarding alleged federal securities law violations from 2015 to 2017 - The SEC filed a civil complaint against the Company and its President in **December 2021**, alleging violations related to activities from **2015 to 2017**, and the Company is defending itself vigorously but notes that an adverse outcome could be **material**[161](index=161&type=chunk)[162](index=162&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=36&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) MD&A highlights strong H1 2023 performance driven by consumer finance growth, increased net interest income despite rising costs, and CECL adoption impacting credit loss allowances [Consolidated Results of Operations](index=52&type=section&id=CONSOLIDATED%20RESULTS%20OF%20OPERATIONS) Net income increased to **$14.2 million** in Q2 2023, driven by a **20%** rise in net interest income from loan portfolio growth, despite tightening net interest margins - Net income for Q2 2023 was **$14.2 million** (**$0.62/share**), up from **$13.3 million** (**$0.54/share**) in Q2 2022, and for the six-month period, net income was **$29.5 million** (**$1.29/share**) compared to **$23.1 million** (**$0.93/share**) in the prior year[278](index=278&type=chunk) - Interest income increased due to growth in the recreation and home improvement loan portfolios, while interest expense also rose, reflecting higher average borrowings and increased borrowing costs, with the average cost of funds rising to **3.05%** in Q2 2023 from **2.05%** in Q2 2022[279](index=279&type=chunk)[282](index=282&type=chunk) - Professional fees decreased to **$1.4 million** in Q2 2023 from **$4.4 million** in Q2 2022, primarily due to lower legal costs associated with the SEC litigation[285](index=285&type=chunk) [SEGMENT RESULTS](index=47&type=section&id=SEGMENT%20RESULTS) Recreation and Home Improvement loan portfolios grew **13%** to **$1.3 million** and **16%** to **$728.5 million** respectively in H1 2023, while Medallion lending saw **$23.9 million** in cash collections - The recreation loan portfolio grew **13%** in the first six months of 2023 to **$1.3 billion**, with the average interest rate on the portfolio increasing **39 basis points** year-over-year to **14.62%**[252](index=252&type=chunk) - The home improvement portfolio grew **16%** in the first half of 2023 to **$728.5 million**, with the average interest rate increasing **71 basis points** from the prior year to **9.21%**[257](index=257&type=chunk) - In the first half of 2023, the company collected **$23.9 million** related to taxi medallion assets, resulting in net recoveries and gains of **$15.6 million**[267](index=267&type=chunk) [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through diverse sources, including brokered CDs and a new Federal Reserve discount window line, while paying a **$0.08 per share** quarterly dividend - Primary sources of liquidity include brokered CDs, SBA debentures, and debt securities, with the Bank also having access to **$113.7 million** in Fed Funds lines as of June 30, 2023[297](index=297&type=chunk) - The company's board reinstated a quarterly dividend in March 2022, and a dividend of **$0.08 per share** was paid in May 2023[318](index=318&type=chunk) - No common stock was repurchased during the six months ended June 30, 2023, with approximately **$20.0 million** remaining authorized for repurchase under the current program[319](index=319&type=chunk)[325](index=325&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes in quantitative and qualitative market risk disclosures have occurred since the 2022 Annual Report on Form 10-K - There has been **no material change** in market risk disclosures since the company's 2022 Form 10-K[320](index=320&type=chunk) [Controls and Procedures](index=57&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were **effective** as of June 30, 2023[321](index=321&type=chunk) - **No changes** occurred during the second quarter of 2023 that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[322](index=322&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=57&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to Note 10 of the financial statements for details on ongoing legal proceedings, primarily the SEC litigation - For details on legal proceedings, the report refers to **Note 10**, which describes the **ongoing SEC litigation**[323](index=323&type=chunk) [Risk Factors](index=57&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to risk factors have been reported since the 2022 Annual Report on Form 10-K - **No material changes** to risk factors were reported since the filing of the 2022 Form 10-K[324](index=324&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company did not repurchase common stock in H1 2023, with **$20.0 million** remaining authorized for future repurchases under the program - The company **did not repurchase** any common stock in the first six months of 2023, and approximately **$20.0 million** remains authorized for repurchase under the existing program[325](index=325&type=chunk)

Financial Data and Key Metrics Changes - The company reported a net income of $14.2 million for Q2 2023, with diluted earnings per share of $0.62, reflecting a return on equity of 18.2% and a return on assets of 2.6% [10][14]. - Net interest income increased by 20% year-over-year to $46.7 million, driven by growth in the loan portfolio and higher interest rates [8][18]. - Operating expenses rose by 1% to $19 million, primarily due to increased employee-related costs, offset by lower legal and professional fees [10]. Business Line Data and Key Metrics Changes - The consumer lending business saw significant origination volumes, with a strong performance attributed to a national base of dealers and contractors [5][7]. - The recreational business segment reported the highest average interest rates of 14.62% and is now the largest segment with $1.3 billion in assets [15]. - The commercial business remained flat compared to the previous quarter, with $5 million in loan originations and a solid pipeline for future growth [16]. Market Data and Key Metrics Changes - The company noted a reduction in competition within the consumer lending space, allowing it to capture market share despite tightening credit and raising rates [22][52]. - The average interest rates on loans increased, with home improvement loans currently written at rates of 10% to 11% and recreational loans at around 16% [33][52]. Company Strategy and Development Direction - The company aims to maintain flexibility in pricing new originations to counteract rising borrowing rates while focusing on customer service to enhance loyalty [5][15]. - The management emphasized the importance of rigorous underwriting standards to target borrowers with a high propensity to repay loans, which has helped maintain high returns and low losses [6][19]. Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of US consumers, which has contributed to strong demand for loans, particularly in home improvement and recreational segments [7][14]. - The company anticipates a return to seasonal trends in loan growth, expecting moderation in the second half of the year [41][51]. Other Important Information - The provision for credit loss was $8.5 million for the quarter, reflecting a normalization of losses in the consumer portfolio, offset by $5.3 million in recoveries on taxi medallion loans [19][36]. - The company ended the quarter with a Tier-1 capital ratio just over 16% and declared a dividend of $0.08 per share [29][78]. Q&A Session Summary Question: Can you provide more details about the competitive environment in the consumer space? - Management noted that there is less competition, allowing the company to grow market share despite tightening credit and raising rates [22]. Question: What is the pricing strategy for Q2? - The company has been increasing rates on new loans for several quarters, which has been slow to reflect in overall yield due to the fixed-rate nature of existing loans [26]. Question: What are the current capital levels and market outlook? - The company has a Tier-1 capital ratio over 16% and plans to reinvest a significant portion of earnings back into the business to support growth [29]. Question: Is there an expectation for dividend increases? - Management indicated that while dividends and buybacks are important, the focus will be on growth and market conditions before making decisions on increases [31][78]. Question: Can you clarify the provision for credit loss? - The gross provision was effectively $13.8 million when accounting for recoveries, with net charge-offs reported at $5.9 million excluding the medallion segment [36][37]. Question: What is the outlook for loan growth? - The company expects a return to seasonal trends, with moderation in growth anticipated in the second half of the year [41][51].