Medallion Financial Corp. Reports 2024 Third Quarter Results
Medallion Financial Corp (NASDAQ: MFIN) reported Q3 2024 results with net income of $8.6 million ($0.37 per share), down from $11.2 million ($0.48 per share) year-over-year. Net interest income grew 8% to $52.7 million. Loan originations reached $275.6 million, with total loans growing 13% to $2.5 billion. The credit loss provision increased to $20.2 million. Recreation and home improvement loans grew to a combined $2.4 billion, with recreation loans at 14.92% average interest rate and home improvement loans at 9.76%. The Board increased quarterly dividend by 10% to $0.11 per share.
Medallion Financial Corp (NASDAQ: MFIN) ha riportato i risultati del terzo trimestre 2024, con un utile netto di 8,6 milioni di dollari (0,37 dollari per azione), in calo rispetto agli 11,2 milioni di dollari (0,48 dollari per azione) dello stesso periodo dell'anno precedente. Il reddito da interessi netti è aumentato dell'8% a 52,7 milioni di dollari. Le origini dei prestiti hanno raggiunto i 275,6 milioni di dollari, con prestiti totali in crescita del 13% a 2,5 miliardi di dollari. La provvista per perdite creditizie è aumentata a 20,2 milioni di dollari. I prestiti per la ricreazione e per miglioramenti domestici sono cresciuti a un totale combinato di 2,4 miliardi di dollari, con i prestiti per la ricreazione a un tasso d'interesse medio del 14,92% e i prestiti per miglioramenti domestici al 9,76%. Il Consiglio ha aumentato il dividendo trimestrale del 10% a 0,11 dollari per azione.
Medallion Financial Corp (NASDAQ: MFIN) reportó los resultados del tercer trimestre de 2024, con un ingreso neto de 8,6 millones de dólares (0,37 dólares por acción), una disminución respecto a los 11,2 millones de dólares (0,48 dólares por acción) del año anterior. Los ingresos netos por intereses crecieron un 8% a 52,7 millones de dólares. Las originaciones de préstamos alcanzaron los 275,6 millones de dólares, con un total de préstamos que creció un 13% a 2,5 mil millones de dólares. La provisión para pérdidas crediticias aumentó a 20,2 millones de dólares. Los préstamos para recreación y mejoras del hogar crecieron a un total combinado de 2,4 mil millones de dólares, con préstamos recreativos a una tasa de interés promedio del 14,92% y préstamos para mejoras del hogar al 9,76%. La Junta aumentó el dividendo trimestral en un 10% a 0,11 dólares por acción.
메달리온 파이낸셜 코퍼레이션 (NASDAQ: MFIN)은 2024년 3분기 실적을 발표하며 순이익이 860만 달러(주당 0.37달러)로 전년 대비 1,120만 달러(주당 0.48달러)에서 감소했다고 보고했습니다. 순이자 수익은 8% 증가하여 5,270만 달러에 도달했습니다. 대출 원가가 2억 7,560만 달러에 이르렀으며, 총 대출액은 13% 증가한 25억 달러로 성장했습니다. 신용 손실 충당금은 2020만 달러로 증가했습니다. 레크리에이션 및 주택 개선 대출이 총 24억 달러로 증가했으며, 레크리에이션 대출의 평균 이자율은 14.92%, 주택 개선 대출은 9.76%였습니다. 이사회는 분기 배당금을 10% 인상하여 주당 0.11달러로 결정했습니다.
Medallion Financial Corp (NASDAQ: MFIN) a publié les résultats du troisième trimestre 2024, avec un revenu net de 8,6 millions de dollars (0,37 dollar par action), en baisse par rapport à 11,2 millions de dollars (0,48 dollar par action) l'année précédente. Les revenus d'intérêts nets ont augmenté de 8 % pour atteindre 52,7 millions de dollars. Les origines de prêts ont atteint 275,6 millions de dollars, avec un total de prêts en hausse de 13 % à 2,5 milliards de dollars. La provision pour pertes sur créances a augmenté à 20,2 millions de dollars. Les prêts pour loisirs et améliorations domiciliaires ont atteint un total combiné de 2,4 milliards de dollars, avec des prêts pour loisirs à un taux d'intérêt moyen de 14,92 % et des prêts pour améliorations domestiques à 9,76 %. Le conseil a augmenté le dividende trimestriel de 10 % à 0,11 dollar par action.
Medallion Financial Corp (NASDAQ: MFIN) berichtete über die Ergebnisse des dritten Quartals 2024, mit einem Nettogewinn von 8,6 Millionen Dollar (0,37 Dollar pro Aktie), ein Rückgang gegenüber 11,2 Millionen Dollar (0,48 Dollar pro Aktie) im Vorjahr. Die Nettozinsforderung stieg um 8 % auf 52,7 Millionen Dollar. Die Darlehensoriginationen erreichten 275,6 Millionen Dollar, während die Gesamtdarlehen um 13 % auf 2,5 Milliarden Dollar wuchsen. Die Rückstellung für Kreditausfälle stieg auf 20,2 Millionen Dollar. Die Kredite für Freizeit und Wohnungsverbesserung wuchsen auf insgesamt 2,4 Milliarden Dollar, wobei die Freizeitkredite einen durchschnittlichen Zinssatz von 14,92 % und die Wohnungsverbesserungskredite 9,76 % aufwiesen. Der Vorstand erhöhte die Quartalsdividende um 10 % auf 0,11 Dollar pro Aktie.
- Net interest income grew 8% YoY to $52.7 million
- Total loans increased 13% YoY to $2.5 billion
- Loan originations up 27% YoY to $275.6 million
- Recreation lending segment grew 15% YoY to $1.6 billion
- Board increased quarterly dividend by 10% to $0.11 per share
- Record high total interest income of $76.4 million
- Net income decreased 23% YoY to $8.6 million
- Credit loss provision increased 39% YoY to $20.2 million
- Net interest margin declined to 8.11% from 8.35% YoY
- Recreation loans 90+ days past due increased to 0.50% from 0.45% YoY
- Home improvement loans 90+ days past due increased to 0.19% from 0.13% YoY
Insights
The Q3 results demonstrate solid performance with some mixed signals.
Notable concerns include rising credit loss provisions (
The credit metrics warrant attention. Delinquency rates are showing modest deterioration - recreation loans 90+ days past due increased to
The aggressive growth in originations amid rising rates and inflation risks could pressure credit quality. However, the weighted average yields on new originations (recreation at
NEW YORK, Oct. 29, 2024 (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, as well as offers loan products and services through fintech strategic partners, announced today its results for the quarter ended September 30, 2024.
2024 Third Quarter Highlights
- Net income was
$8.6 million , or$0.37 per share, compared to$11.2 million , or$0.48 per share, in the prior year quarter. - Net interest income grew
8% to$52.7 million from$48.8 million in the prior year quarter. - Net interest margin on gross loans was
8.11% , compared to8.35% in the prior year quarter, and on net loans it was8.42% , compared to8.64% in the prior year quarter. - Loan originations were
$275.6 million , compared to$217.4 million in the prior year quarter. - Loans grew
13% to$2.5 billion as of September 30, 2024, compared to$2.2 billion a year ago. - The credit loss provision increased to
$20.2 million from$14.5 million in the prior year quarter. - The Company repurchased 122,344 shares of common stock at an average cost of
$7.89 per share. - Subsequent to September 30, 2024, the Board of Directors increased the quarterly cash dividend
10% to$0.11 per share.
Executive Commentary – Andrew Murstein, President of Medallion
"We continue to be pleased with our quarterly performance. The earnings were strong despite lower taxi medallion related recoveries and the absence of equity gains, both of which we experienced in the prior year quarter. At
Our net interest income reached
Our total interest income of
Lastly, we are pleased to announce that our board of directors has authorized an increase of our quarterly dividend to
Business Segment Highlights
Recreation Lending Segment
- Originations were
$139.1 million during the quarter, compared to$92.6 million a year ago. - Recreation loans grew
15% to$1.6 billion as of September 30, 2024, compared to$1.3 billion a year ago. - Recreation loans were
63% of total loans as of September 30, 2024, compared to61% a year ago. - Net interest income grew
9% to$38.9 million for the quarter, from$35.6 million in the prior year quarter. - The average interest rate was
14.92% at quarter-end, compared to14.73% a year ago. - Recreation loans 90 days or more past due were
$7.5 million , or0.50% of gross recreation loans, as of September 30, 2024, compared to$5.9 million , or0.45% , a year ago. - Allowance for credit loss rate was
4.53% as of September 30, 2024, compared to4.24% a year ago.
Home Improvement Lending Segment
- Originations were
$96.5 million during the quarter, compared to$79.3 million a year ago. - Home improvement loans grew
8% to$814.1 million as of September 30, 2024, compared to$750.5 million a year ago. - Home improvement loans were
33% of total loans as of September 30, 2024, compared to34% a year ago. - Net interest income grew
5% to$12.0 million for the quarter, from$11.4 million in the prior year quarter. - The average interest rate was
9.76% at quarter-end, compared to9.38% a year ago. - Home improvement loans 90 days or more past due were
$1.6 million , or0.19% of gross home improvement loans, as of September 30, 2024, compared to$1.0 million , or0.13% , a year ago. - Allowance for credit loss rate was
2.42% as of September 30, 2024, compared to2.31% a year ago.
Commercial Lending Segment
- Commercial loans were
$110.1 million at September 30, 2024, compared to$100.3 million a year ago. - The average interest rate on the portfolio was
12.90% , compared to12.91% a year ago.
Taxi Medallion Lending Segment
- The Company collected
$4.1 million of cash on taxi medallion-related assets during the quarter. - Total net taxi medallion assets declined to
$8.8 million (comprised of$1.9 million of loans net of allowance for credit losses and$6.9 million of loan collateral in process of foreclosure), a46% reduction from a year ago, and represented less than half a percent of the Company’s total assets as of September 30, 2024.
Capital Allocation
Quarterly Dividend
- The Board of Directors declared a quarterly dividend of
$0.11 per share, payable on November 27, 2024 to shareholders of record at the close of business on November 15, 2024.
Stock Repurchase Plan
- During the third quarter, the Company repurchased 122,344 shares of its common stock at an average cost of
$7.89 per share, for a total of$1.0 million . - As of September 30, 2024, the Company had
$15.4 million remaining under its$40 million share repurchase program.
Conference Call Information
The Company will host a conference call to discuss its third quarter financial results tomorrow, Wednesday, October 30, 2024 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
- Date: Wednesday, October 30, 2024
- Time: 9:00 a.m. Eastern time
- U.S. dial-in number: (833) 816-1412
- International dial-in number: (412) 317-0504
- Live webcast: Link to Webcast of 3Q24 Earnings Call
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 Wednesday, November 6.
- U.S. dial-in number: (844) 512-2921
- International dial-in number: (412) 317-6671
- Access ID: 1019 3247
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, 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, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2023 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) | September 30, 2024 | December 31, 2023 | September 30, 2023 | |||||||||
| Assets | ||||||||||||
| Cash, cash equivalents, and federal funds sold | $ | 187,929 | $ | 149,845 | $ | 127,642 | ||||||
| Investment and equity securities | 66,651 | 65,712 | 63,717 | |||||||||
| Loans | 2,485,279 | 2,215,886 | 2,203,038 | |||||||||
| Allowance for credit losses | (96,518 | ) | (84,235 | ) | (79,133 | ) | ||||||
| Net loans receivable | 2,388,761 | 2,131,651 | 2,123,905 | |||||||||
| Goodwill and intangible assets, net | 170,311 | 171,394 | 171,755 | |||||||||
| Property, equipment, and right-of-use lease asset, net | 14,172 | 14,076 | 13,278 | |||||||||
| Accrued interest receivable | 14,108 | 13,538 | 13,593 | |||||||||
| Loan collateral in process of foreclosure | 8,818 | 11,772 | 15,923 | |||||||||
| Other assets | 29,302 | 29,839 | 28,814 | |||||||||
| Total assets | $ | 2,880,052 | $ | 2,587,827 | $ | 2,558,627 | ||||||
| Liabilities | ||||||||||||
| Deposits | $ | 2,108,132 | $ | 1,866,657 | $ | 1,855,096 | ||||||
| Long-term debt | 232,037 | 235,544 | 218,137 | |||||||||
| Short-term borrowings | 49,000 | 8,000 | 18,489 | |||||||||
| Deferred tax liabilities, net | 20,598 | 21,207 | 23,131 | |||||||||
| Operating lease liabilities | 5,534 | 7,019 | 7,075 | |||||||||
| Accrued interest payable | 6,888 | 6,822 | 4,624 | |||||||||
| Accounts payable and accrued expenses | 26,687 | 30,804 | 34,813 | |||||||||
| Total liabilities | 2,448,876 | 2,176,053 | 2,161,365 | |||||||||
| Total stockholders’ equity | 362,388 | 342,986 | 328,474 | |||||||||
| Non-controlling interest in consolidated subsidiaries | 68,788 | 68,788 | 68,788 | |||||||||
| Total equity | 431,176 | 411,774 | 397,262 | |||||||||
| Total liabilities and equity | $ | 2,880,052 | $ | 2,587,827 | $ | 2,558,627 | ||||||
| Number of shares outstanding | 23,084,277 | 23,449,646 | 23,363,731 | |||||||||
| Book value per share | $ | 15.70 | $ | 14.63 | $ | 14.06 | ||||||
| MEDALLION FINANCIAL CORP. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (Dollars in thousands, except share and per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Total interest income | $ | 76,409 | $ | 65,886 | $ | 214,183 | $ | 183,455 | ||||||||
| Total interest expense | 23,672 | 17,102 | 63,661 | 44,379 | ||||||||||||
| Net interest income | 52,737 | 48,784 | 150,522 | 139,076 | ||||||||||||
| Provision for credit losses | 20,151 | 14,532 | 55,929 | 27,045 | ||||||||||||
| Net interest income after provision for credit losses | 32,586 | 34,252 | 94,593 | 112,031 | ||||||||||||
| Other income (loss) | ||||||||||||||||
| (Loss) gain on equity investments | (519 | ) | 2,180 | 3,136 | 2,189 | |||||||||||
| Gain on sale of loans and taxi medallions | 340 | 1,417 | 1,170 | 4,578 | ||||||||||||
| Write-down of loan collateral in process of foreclosure | (19 | ) | (30 | ) | (19 | ) | (303 | ) | ||||||||
| Other income | 785 | 739 | 2,802 | 1,868 | ||||||||||||
| Total other income, net | 587 | 4,306 | 7,089 | 8,332 | ||||||||||||
| Other expenses | ||||||||||||||||
| Salaries and employee benefits | 9,456 | 9,630 | 28,347 | 27,805 | ||||||||||||
| Loan servicing fees | 2,790 | 2,501 | 7,951 | 7,084 | ||||||||||||
| Collection costs | 1,673 | 1,583 | 4,799 | 4,729 | ||||||||||||
| Regulatory fees | 961 | 1,021 | 2,826 | 2,484 | ||||||||||||
| Professional fees | 818 | 1,148 | 3,434 | 4,223 | ||||||||||||
| Rent expense | 664 | 629 | 2,019 | 1,855 | ||||||||||||
| Amortization of intangible assets | 361 | 361 | 1,084 | 1,084 | ||||||||||||
| Other expenses | 2,272 | 2,216 | 6,755 | 7,220 | ||||||||||||
| Total other expenses | 18,995 | 19,089 | 57,215 | 56,484 | ||||||||||||
| Income before income taxes | 14,178 | 19,469 | 44,467 | 63,879 | ||||||||||||
| Income tax provision | 4,055 | 6,727 | 14,196 | 18,582 | ||||||||||||
| Net income after taxes | 10,123 | 12,742 | 30,271 | 45,297 | ||||||||||||
| Less: income attributable to the non-controlling interest | 1,512 | 1,512 | 4,535 | 4,536 | ||||||||||||
| Total net income attributable to Medallion Financial Corp. | $ | 8,611 | $ | 11,230 | $ | 25,736 | $ | 40,761 | ||||||||
| Basic net income per share | $ | 0.38 | $ | 0.50 | $ | 1.14 | $ | 1.81 | ||||||||
| Diluted net income per share | $ | 0.37 | $ | 0.48 | $ | 1.09 | $ | 1.77 | ||||||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 22,490,792 | 22,596,982 | 22,576,446 | 22,469,968 | ||||||||||||
| Diluted | 23,447,929 | 23,392,901 | 23,555,065 | 23,067,944 | ||||||||||||
| Dividends declared per common share | $ | 0.10 | $ | 0.08 | $ | 0.30 | $ | 0.24 | ||||||||
FAQ
What was Medallion Financial's (MFIN) earnings per share in Q3 2024?
How much did MFIN's loan portfolio grow in Q3 2024?
What is MFIN's new quarterly dividend for Q4 2024?
What was MFIN's net interest income in Q3 2024?
