Medallion Financial (US:MFIN) Globenewswire·2026-02-03 18:13Core Viewpoint - ZimCal Asset Management believes that Medallion Financial Corp. is undervalued due to poor leadership and has outlined potential solutions to enhance its value [1][3]. Company Analysis - ZimCal has been invested in Medallion for five years and has engaged with the company's board regarding concerns and suggestions, but has been ignored [2]. - The company has significant potential, particularly through its subsidiary, Medallion Bank, but is hindered by excessive executive compensation and high corporate costs [4]. - Medallion's stock price is currently 40% lower than its peak in November 2013, and its tangible book value is below its 4Q2013 peak [6][7]. Leadership and Governance Issues - CEO Andrew Murstein has faced an SEC lawsuit for securities fraud, with legal fees and penalties paid by shareholders rather than him [5]. - The board of directors has not held Murstein accountable, with three out of eight directors being family members and an average tenure of 18 years [5]. - The company has paid Murstein over $20 million in bonuses despite declining performance, which could be clawed back to increase market capitalization by nearly 10% [5]. Financial Performance - Medallion's consumer charge-offs are at a 14-year high, and loans are barely growing, indicating poor performance in its core business [6][8]. - The commercial lending segment has shown approximately 20% non-performing loans over the last three quarters [8]. - The company's fundamentals are deteriorating, with tangible book value dropping below $30 million and stock price significantly down from its historical highs [7][8]. Strategic Recommendations - ZimCal suggests that under better leadership and a technology-focused approach, Medallion's value could significantly increase [6][9]. - The company has proposed simple solutions that could boost value and investor interest, which have been shared with Medallion privately for nearly two and a half years [9].