Medallion Financial Corp. Reports 2024 Fourth Quarter and Full-Year Results

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].