MEDALLION BANK F(MBNKP) - 2024 Q4 - Annual Results

Financial & Operational Highlights Executive Commentary Medallion's President highlights record annual loan originations over $1 billion and strong year-end financial performance - For the first time in company history, annual loan originations exceeded $1 billion, with over half being high-yielding recreation loans[5] - The commercial lending group, Medallion Capital, generated net gains of $3.8 million in Q4 and $6.9 million for the full year from exiting a portfolio investment[6] - An agreement in principle was reached regarding the SEC matter, resulting in a $3.0 million charge for the settlement and a $5.5 million benefit from insurance coverage for legal costs[7] - The company achieved record year-end figures for total interest income, net interest income, assets, strategic partnership loan volume, and total equity[8] 2024 Fourth Quarter Highlights Q4 2024 net income decreased to $10.1 million due to lower taxi medallion recoveries, despite net interest income growth Q4 2024 vs Q4 2023 Financial Performance (in millions) | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $10.1M | $14.3M | -29.4% | | Diluted EPS | $0.43 | $0.60 | -28.3% | | Net Interest Income | $52.0M | $49.0M | +6.1% | | Loan Originations | $285.7M | $169.1M | +69.0% | | Credit Loss Provision | $20.6M | $10.8M | +90.8% | | Taxi Medallion Recoveries | $1.3M | $12.5M | -89.6% | - The Board of Directors approved a 10% increase in the quarterly dividend to $0.11 per share[8] 2024 Full-Year Highlights Full-year 2024 net income decreased to $35.9 million due to lower taxi medallion recoveries, despite record net interest income Full-Year 2024 vs 2023 Financial Performance (in millions/billions) | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $35.9M | $55.1M | -34.8% | | Diluted EPS | $1.52 | $2.37 | -35.9% | | Net Interest Income | $202.5M | $188.1M | +7.7% | | Loan Originations | $1.0B | $960.0M | +4.2% | | Credit Loss Provision | $76.5M | $37.8M | +102.4% | | Total Assets | $2.9B | $2.6B (Dec 31, 2023) | +11% | - The company repurchased 570,404 shares of common stock for a total of $4.6 million during the year[8] Business Segment & Capital Allocation Business Segment Highlights Recreation and Home Improvement lending segments show strong portfolio growth, while the Taxi Medallion segment significantly reduced Recreation Lending Segment Recreation Lending reported strong Q4 originations, 15% portfolio growth to $1.5 billion, and stable asset quality Recreation Lending Segment Q4 2024 Metrics (in millions/billions) | Metric | Q4 2024 | YoY Change | | :--- | :--- | :--- | | Originations | $72.2M | +15.2% | | Total Portfolio | $1.5B | +15.0% | | Average Interest Rate | 15.07% | +28 bps | | 90+ Days Past Due | 0.67% | -3 bps | - In December 2024, the company signed a letter of intent to sell up to $121 million of recreation loans at a premium to par value[13] Home Improvement Lending Segment Home Improvement Lending saw Q4 originations of $82.5 million, 9% portfolio growth to $827.2 million, and improved credit quality Home Improvement Lending Segment Q4 2024 Metrics (in millions) | Metric | Q4 2024 | YoY Change | | :--- | :--- | :--- | | Originations | $82.5M | +25.0% | | Total Portfolio | $827.2M | +8.8% | | Average Interest Rate | 9.81% | +30 bps | | 90+ Days Past Due | 0.17% | -3 bps | Commercial Lending Segment Commercial Lending portfolio remained stable at $111.3 million with a slight increase in average interest rate to 12.97% - Commercial loans totaled $111.3 million at year-end 2024, with an average interest rate of 12.97%[13] Taxi Medallion Lending Segment The Taxi Medallion portfolio continues to wind down, with net assets reduced by 37% to $7.7 million - Collected $2.6 million of cash on taxi medallion-related assets during Q4 2024[13] - Total net taxi medallion assets were reduced by 37% year-over-year to $7.7 million, representing less than 0.5% of total company assets[13] Capital Allocation Medallion Financial actively returns capital to shareholders through increased dividends and a $4.6 million stock repurchase program Quarterly Dividend The Board declared a quarterly cash dividend of $0.11 per share, a 10% increase, payable on March 31, 2025 - The Board declared a quarterly dividend of $0.11 per share, payable on March 31, 2025[11] Stock Repurchase Plan In 2024, the company repurchased 570,404 shares for $4.6 million, with $15.4 million remaining under the program - In 2024, the Company purchased 570,404 shares for $4.6 million, with $15.4 million remaining under the repurchase program[12] Financial Statements Consolidated Balance Sheets Total assets increased 11% to $2.87 billion, driven by loan growth and funded by a 12% rise in deposits, with total equity also increasing Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $2,868,606 | $2,587,827 | +10.8% | | Net Loans Receivable | $2,265,428 | $2,131,651 | +6.3% | | Total Liabilities | $2,429,648 | $2,176,053 | +11.7% | | Deposits | $2,090,071 | $1,866,657 | +11.9% | | Total Equity | $438,958 | $411,774 | +6.6% | | Book Value Per Share | $16.00 | $14.63 | +9.4% | Consolidated Statements of Operations Full-year 2024 net interest income grew 8% to $202.5 million, but net income declined to $35.9 million due to higher credit loss provisions Consolidated Statement of Operations Highlights (in thousands) | Account | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $202,535 | $188,094 | +7.7% | | Provision for Credit Losses | $76,502 | $37,810 | +102.3% | | Total Other Income, net | $11,330 | $11,320 | +0.1% | | Total Other Expenses | $74,427 | $75,568 | -1.5% | | Net Income Attributable to MFIN | $35,878 | $55,079 | -34.9% | | Diluted EPS | $1.52 | $2.37 | -35.9% | Conference Call & Company Information Conference Call Information The company will host a conference call on March 5, 2025, at 9:00 a.m. ET to discuss Q4 and full-year 2024 results Earnings Call Details | Item | Detail | | :--- | :--- | | Date | Wednesday, March 5, 2025 | | Time | 9:00 a.m. Eastern time | | U.S. Dial-in | (833) 816-1412 | | International Dial-in | (412) 317-0504 | About Medallion Financial Corp. Medallion Financial Corp. is a specialty finance company focusing on consumer and mezzanine loans in recreation and home improvement - Medallion Financial Corp. originates and services consumer and mezzanine loans, with a focus on the recreation and home improvement industries[17] Forward-Looking Statements This press release contains forward-looking statements subject to risks and uncertainties, including the pending SEC litigation settlement approval - The press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ significantly. The settlement of the pending SEC litigation remains subject to SEC and court approval[18]