NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) -- 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 Commentary – Andrew Murstein, President of Medallion
"Once again we are pleased with our bottom-line performance and the $0.50 per share earnings this quarter. We have done a great job pivoting fully away from our legacy taxi medallion lending business. Our consumer lending businesses continue to perform well. Our commercial division, Medallion Capital, which we acquired for approximately 1.1 million MFIN shares back in 1998, had another greater quarter and generated strong equity gains. Since 2015, Medallion Capital has generated $67 million of earnings for our shareholders.
We originated more than $280 million of loans during the quarter, with strategic partnership loans accounting for nearly half. Strategic partnership loan volume increased to $136 million this quarter up from just $16 million one year ago. We saw delinquencies in both of our consumer loan portfolios improve from a quarter ago.
Lastly, we are happy to announce that our board of directors has increased our quarterly dividend to $0.12 per share. We look forward to a bright future for our Company and continuing to deliver positive returns to our shareholders."
Business Segment Highlights
Recreation Lending Segment
Home Improvement Lending Segment
Commercial Lending Segment
Taxi Medallion Lending Segment
Capital Allocation
Quarterly Dividend
Stock Repurchase Plan
Conference Call Information
The Company will host a conference call to discuss its first quarter financial results tomorrow, Thursday, May 1, 2025, at 9:00 a.m. Eastern time.
In connection with its earnings release, the Company has updated its quarterly supplement presentation, which is now available at www.medallion.com.
How to Participate
A link to the live audio webcast of the conference call will also be available at the Company's IR website.
Replay Information
The webcast replay will be available at the Company's IR website until the next quarter's results are announced.
The conference call replay will be available following the end of the call through Thursday, May 8, 2025
About Medallion Financial Corp.
Medallion Financial Corp. (NASDAQ:MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com.
Forward-Looking Statements
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and our growth strategy. These statements are often, but not always, made using words or phrases such as "will" and "continue" or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, the impact of the pending SEC litigation, expectations regarding our loan portfolio, including collections on our medallion loans, the potential for future asset growth, and market share opportunities. Medallion's actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, whether inflation or the risk of recession, the effects of tariffs, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion's control. In addition to risks relating to the current economy, a description of certain risks to which Medallion is or may be subject, including risks related to the pending SEC litigation, the settlement of which remains subject to SEC and court approval, please refer to the factors discussed under the heading "Risk Factors" in Medallion's 2024 Annual Report on Form 10-K.
Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com
| MEDALLION FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||||
| (Dollars in thousands, except share and per share data) | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
| Assets | ||||||||||||
| Cash, cash equivalents, and federal funds sold | $ | 157,994 | $ | 169,572 | $ | 169,125 | ||||||
| Investment securities | 60,424 | 54,805 | 53,038 | |||||||||
| Equity investments | 8,997 | 9,198 | 16,374 | |||||||||
| Loans held for sale, at lower of amortized cost or fair value | 124,733 | 128,226 | — | |||||||||
| Loans | 2,361,700 | 2,362,796 | 2,228,426 | |||||||||
| Allowance for credit losses | (100,366 | ) | (97,368 | ) | (83,827 | ) | ||||||
| Net loans receivable | 2,261,334 | 2,265,428 | 2,144,599 | |||||||||
| Goodwill and intangible assets, net | 169,588 | 169,949 | 171,033 | |||||||||
| Property, equipment, and right-of-use lease asset, net | 12,814 | 13,756 | 14,024 | |||||||||
| Accrued interest receivable | 14,437 | 15,314 | 12,673 | |||||||||
| Loan collateral in process of foreclosure | 9,183 | 9,932 | 10,198 | |||||||||
| Other assets | 28,234 | 32,426 | 27,698 | |||||||||
| Total assets | $ | 2,847,738 | $ | 2,868,606 | $ | 2,602,388 | ||||||
| Liabilities | ||||||||||||
| Deposits | $ | 2,022,828 | $ | 2,090,071 | $ | 1,879,061 | ||||||
| Long-term debt | 199,665 | 232,159 | 225,558 | |||||||||
| Short-term borrowings | 111,750 | 49,000 | 32,500 | |||||||||
| Deferred tax liabilities, net | 21,538 | 20,995 | 24,846 | |||||||||
| Operating lease liabilities | 4,528 | 5,128 | 6,710 | |||||||||
| Accrued interest payable | 6,610 | 8,231 | 6,077 | |||||||||
| Accounts payable and accrued expenses | 31,807 | 24,064 | 26,186 | |||||||||
| Total liabilities | 2,398,726 | 2,429,648 | 2,200,938 | |||||||||
| Total stockholders' equity | 380,224 | 370,170 | 349,036 | |||||||||
| Non-controlling interest in consolidated subsidiaries | 68,788 | 68,788 | 68,788 | |||||||||
| Total equity | 449,012 | 438,958 | 417,824 | |||||||||
| Total liabilities and equity | $ | 2,847,738 | $ | 2,868,606 | $ | 2,618,762 | ||||||
| Number of shares outstanding | 23,235,030 | 23,135,624 | 23,377,564 | |||||||||
| Book value per share | $ | 16.36 | $ | 16.00 | $ | 14.93 | ||||||
| MEDALLION FINANCIAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||
| Three Months Ended March 31, | ||||||||
| (Dollars in thousands, except share and per share data) | 2025 | 2024 | ||||||
| Total interest income | $ | 75,425 | $ | 67,070 | ||||
| Total interest expense | 24,013 | 19,153 | ||||||
| Net interest income | 51,412 | 47,917 | ||||||
| Provision for credit losses | 22,014 | 17,201 | ||||||
| Net interest income after provision for credit losses | 29,398 | 30,716 | ||||||
| Other income | ||||||||
| Gain on equity investments, net | 9,430 | 4,167 | ||||||
| Gain on taxi medallion assets, net | 843 | 629 | ||||||
| Strategic partnership fees | 685 | 326 | ||||||
| Other income | 641 | 281 | ||||||
| Total other income, net | 11,599 | 5,403 | ||||||
| Other expenses | ||||||||
| Salaries and employee benefits | 9,993 | 9,457 | ||||||
| Loan servicing fees | 2,817 | 2,470 | ||||||
| Collection costs | 1,537 | 1,467 | ||||||
| Regulatory fees | 821 | 977 | ||||||
| Professional fee costs, net | 1,750 | 771 | ||||||
| Rent expense | 675 | 657 | ||||||
| Amortization of intangible assets | 361 | 361 | ||||||
| Other expenses | 2,804 | 2,065 | ||||||
| Total other expenses | 20,758 | 18,225 | ||||||
| Income before income taxes | 20,239 | 17,894 | ||||||
| Income tax provision | 6,713 | 6,358 | ||||||
| Net income after taxes | 13,526 | 11,536 | ||||||
| Less: income attributable to the non-controlling interest | 1,512 | 1,512 | ||||||
| Total net income attributable to Medallion Financial Corp. | $ | 12,014 | $ | 10,024 | ||||
| Basic net income per share | $ | 0.53 | $ | 0.44 | ||||
| Diluted net income per share | $ | 0.50 | $ | 0.42 | ||||
| Weighted average common shares outstanding | ||||||||
| Basic | 22,570,797 | 22,641,385 | ||||||
| Diluted | 23,897,167 | 23,765,045 | ||||||
| Dividends declared per common share | $ | 0.12 | $ | 0.10 | ||||
