Medallion Financial Corp. Reports 2022 First Quarter Results
Medallion Financial Corp. (NASDAQ: MFIN) reported a 17% increase in net income for Q1 2022, totaling $9.8 million, or $0.39 per share, up from $8.4 million, or $0.34 per share in Q1 2021. Net interest income rose 25% to $35.9 million, while loan originations surged 44% to $213.7 million. The recreation loan portfolio surpassed $1 billion. The company reinstated a cash dividend of $0.08 per share and repurchased 67,660 shares at an average price of $9.12. Low charge-offs and improved delinquencies were noted, with net charge-offs at $2.7 million.
- Net income increased by 17% to $9.8 million.
- Net interest income rose 25% to $35.9 million.
- Loan originations surged 44% to $213.7 million.
- Recreation loan portfolio exceeded $1 billion.
- Quarterly dividend reinstated at $0.08 per share.
- Stock repurchase of 67,660 shares at $9.12 average price.
- Low net charge-offs of $2.7 million.
- Total net medallion exposure remains at $37.1 million, which is a concern.
NEW YORK, May 02, 2022 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a 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 2022 first quarter results for the quarter ended March 31, 2022.
2022 First Quarter Highlights
- Net income grew
17% to$9.8 million , or$0.39 per share, compared to$8.4 million , or$0.34 per share, in the prior year quarter. - Net interest income grew
25% to$35.9 million from$28.7 million in the prior year quarter. - Net interest margin was
9.20% , in line with the9.18% in the prior year quarter. - Loan originations increased
44% to$213.7 million from$148.0 million in the prior year quarter. - During the quarter, the recreation loan portfolio exceeded
$1 billion for the first time. - Medallion paid a cash dividend of
$0.08 per share during the quarter.
Executive Commentary – Andrew Murstein, President of Medallion
“We had a great start to the year as we maintained our momentum, resulting in another strong quarter. Over the past four quarters, we increased our recreation loans by
Loan Detail
- During the quarter, net charge-offs remained low at
$2.7 million , compared to$2.8 million in the prior year quarter. - Loans 90 days or more past due were
0.27% of loans at March 31, 2022, compared to0.33% at March 31, 2021.
Business Segment Highlights
Consumer Lending Segments
- We grew originations by
44% to$204.2 million during the 2022 first quarter, compared to$141.9 million in the prior year quarter. - Consumer loans were
$1.5 billion as of March 31, 2022, compared to$1.2 billion a year ago. - Consumer loans were
94% of total loans as of March 31, 2022, compared to93% a year ago. - The loan portfolios grew
22% for recreation and38% for home improvement from March 31, 2021. - Net interest income grew
14% to$35.9 million for the quarter, from$31.4 million in the prior year quarter. - The average interest rate on the portfolio was
12.42% at quarter-end, compared to13.44% a year ago. - Consumer loans 90 days or more past due were
$4.1 million , or0.28% of gross consumer loans, as of March 31, 2022, compared to$3.3 million , or0.29% , a year ago. Delinquencies continued to be lower than historical averages. - Segment net income for the first quarter was
$16.3 million , compared to$14.8 million in the prior year quarter.
Commercial Lending Segment
- We originated
$4.4 million during the 2022 first quarter, compared to$4.2 million in the prior year quarter. - Commercial loans were
$77.9 million at March 31, 2022, compared to$58.9 million a year ago. - The average interest rate on the portfolio was
12.41% , compared to12.65% a year ago.
Medallion Lending Segment
- The Company collected
$5.2 million in the first quarter. - Total net medallion exposure declined to
$37.1 million (comprised of$4.6 million of loans net of allowance for loan losses and$32.5 million of loan collateral in process of foreclosure), representing less than2% of the Company’s total assets, as of March 31, 2022.
Capital Allocation
Quarterly Dividend
- The Company reinstated its quarterly dividend in February 2022. The first
$0.08 per share dividend was paid on March 31, 2022. - The Board of Directors declared a quarterly cash dividend of
$0.08 per share payable on May 31, 2022, to shareholders of record at the close of business on May 16, 2022.
Stock Repurchase Plan
- During the 2022 first quarter, the Company repurchased 67,660 shares of its common stock at an average of
$9.12 per share. - As announced earlier today, the Company authorized a new repurchase plan for
$35 million of its shares.
Conference Call Information
The Company will host a conference call to discuss its first quarter financial results on Tuesday, May 3, 2022, at 9:00 a.m. Eastern time.
The Company will incorporate a slide show presentation in conjunction with the earnings call. The presentation is now available at www.medallion.com and will also be discussed during the call.
- Conference Call Dial-In: (877) 407-0789 (U.S.) or (201) 689-8562 (international). Please dial the number 10 minutes prior to the scheduled start time.
- Live Webcast: available on Medallion’s website at http://www.medallion.com/investors.html
- Call Replay: available following the end of the call through Tuesday, May 10, 2022, by telephone at (844) 512-2921 (U.S.) or (412) 317-6671 (international), passcode 13729508.
- Webcast Replay: available at http://www.medallion.com/investors.html until the next quarter’s results are announced.
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, expectations regarding medallion loan portfolio, 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 COVID-19 pandemic on Medallion’s business, 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, the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on Medallion, its customers and third parties. In addition to risks related to the ongoing COVID-19 pandemic, for a description of certain risks to which Medallion is or may be subject, including risks related to the pending SEC litigation, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2021 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, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||
| Assets | ||||||||||||||||
| Cash, cash equivalents, and federal funds sold | $ | 138,794 | $ | 124,484 | $ | 140,277 | ||||||||||
| Equity investments and investment securities | 57,151 | 54,498 | 47,610 | |||||||||||||
| Loans | 1,569,441 | 1,488,924 | 1,259,215 | |||||||||||||
| Allowance for loan losses | (50,686 | ) | (50,166 | ) | (57,809 | ) | ||||||||||
| Net loans receivable | 1,518,775 | 1,438,758 | 1,201,406 | |||||||||||||
| Loan collateral in process of foreclosure | 33,834 | 37,430 | 50,733 | |||||||||||||
| Goodwill and intangible assets | 173,923 | 174,283 | 201,532 | |||||||||||||
| Other assets | 44,168 | 43,604 | 47,192 | |||||||||||||
| Total assets | $ | 1,966,625 | $ | 1,873,057 | $ | 1,688,750 | ||||||||||
| Liabilities | ||||||||||||||||
| Deposits | $ | 1,332,112 | $ | 1,250,880 | $ | 1,084,074 | ||||||||||
| Long-term debt | 220,006 | 219,973 | 182,225 | |||||||||||||
| Accounts payable and other liabilities | 22,193 | 19,113 | 22,508 | |||||||||||||
| Deferred tax liabilities and other tax payables | 21,731 | 18,210 | 3,528 | |||||||||||||
| Operating lease liabilities | 8,542 | 9,053 | 10,464 | |||||||||||||
| Short-term borrowings | — | — | 73,937 | |||||||||||||
| Total liabilities | 1,604,584 | 1,517,229 | 1,376,736 | |||||||||||||
| Commitments and contingencies | ||||||||||||||||
| Total stockholders’ equity | 293,253 | 287,040 | 239,732 | |||||||||||||
| Non-controlling interest in consolidated subsidiaries | 68,788 | 68,788 | 72,282 | |||||||||||||
| Total equity | 362,041 | 355,828 | 312,014 | |||||||||||||
| Total liabilities and equity | $ | 1,966,625 | $ | 1,873,057 | $ | 1,688,750 | ||||||||||
| Number of shares outstanding | 25,507,113 | 25,173,386 | 25,034,355 | |||||||||||||
| Book value per share | $ | 11.50 | $ | 11.40 | $ | 9.58 | ||||||||||
MEDALLION FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| For the Three Months Ended March 31, | ||||||||
| (Dollars in thousands, except share and per share data) | 2022 | 2021 | ||||||
| Total interest income | $ | 43,303 | $ | 37,080 | ||||
| Total interest expense | 7,375 | 8,407 | ||||||
| Net interest income | 35,928 | 28,673 | ||||||
| Provision for loan losses | 3,240 | 3,019 | ||||||
| Net interest income after provision for loan losses | 32,688 | 25,654 | ||||||
| Other income (loss) | ||||||||
| Loss on equity investments | (133 | ) | — | |||||
| Write-down of loan collateral in process of foreclosure | (386 | ) | (2,785 | ) | ||||
| Gain on extinguishment of debt | — | 1,767 | ||||||
| Sponsorship and race winnings, net | — | 2,473 | ||||||
| Other income | 2,048 | 482 | ||||||
| Total other income, net | 1,529 | 1,937 | ||||||
| Other expenses | ||||||||
| Salaries and employee benefits | 7,568 | 5,685 | ||||||
| Race team related expenses | — | 2,122 | ||||||
| Loan servicing fees | 1,953 | 1,647 | ||||||
| Professional fees | 3,992 | 507 | ||||||
| Collection costs | 1,343 | 1,232 | ||||||
| Other expenses | 3,177 | 3,449 | ||||||
| Total other expenses | 18,033 | 14,642 | ||||||
| Income before income taxes | 16,184 | 12,949 | ||||||
| Income tax provision | (4,831 | ) | (3,878 | ) | ||||
| Net income after taxes | 11,353 | 9,071 | ||||||
| Less: income attributable to the non-controlling interest | 1,512 | 640 | ||||||
| Total net income attributable to Medallion Financial Corp. | $ | 9,841 | $ | 8,431 | ||||
| Basic net income per share | $ | 0.40 | $ | 0.34 | ||||
| Diluted net income per share | $ | 0.39 | $ | 0.34 | ||||
| Weighted average common shares outstanding | ||||||||
| Basic | 24,770,134 | 24,518,775 | ||||||
| Diluted | 25,083,566 | 24,895,108 | ||||||
FAQ
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