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

Net income grew 20% to $12.0 million, or $0.50 per share, compared to $10.0 million, or $0.42 per share, in the prior year quarter.
Net interest income grew 7% to $51.4 million from $47.9 million in the prior year quarter.
Net interest margin on net loans was 8.25%, compared to 8.39% in the prior year quarter, and on gross loans it was 7.94%, compared to 8.10% in the prior year quarter.
Loan originations grew to $281.6 million, compared to $173.1 million in the prior year quarter, and included $136.2 million of strategic partnership loans in the current quarter compared to $15.7 million in the prior year quarter.
Loans grew 12% to $2.5 billion as of March 31, 2025, compared to $2.2 billion a year ago.
Credit loss provision increased to $22.0 million from $17.2 million in the prior year quarter.
The Company declared and paid a quarterly cash dividend of $0.11 per share.
Subsequent to March 31, 2025, the Board of Directors increased the quarterly cash dividend to $0.12 per share.

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

Originations were $86.8 million during the quarter, compared to $105.8 million a year ago.
Recreation loans, including loans held for investment and loans held for sale, grew 13% to $1.5 billion, or 62% of total loans, as of March 31, 2025, compared to $1.4 billion a year ago.
Interest income grew 15% to $50.5 million for the quarter, from $43.9 million in the prior year quarter.
The average interest rate was 15.01% at quarter-end, 15.10% excluding loans held sale, compared to 14.80% a year ago.
Recreation loans 90 days or more past due were $7.1 million, or 0.48% of gross recreation loans, as of March 31, 2025, compared to $6.4 million, or 0.48%, a year ago.
Allowance for credit loss was 5.00% at quarter-end for loans held for investment, compared to 4.40% a year ago.

Home Improvement Lending Segment

Originations were $48.8 million during the quarter, compared to $51.6 million a year ago.
Home improvement loans grew 8% to $812.4 million, or 33% of total loans, as of March 31, 2025, compared to $752.3 million a year ago.
Interest income grew 13% to $19.8 million for the quarter, from $17.4 million in the prior year quarter.
The average interest rate was 9.83% at quarter-end, compared to 9.60% a year ago.
Home improvement loans 90 days or more past due were $1.5 million, or 0.19% of gross home improvement loans, as of March 31, 2025, compared to $1.4 million, or 0.18%, a year ago.
Allowance for credit loss was 2.49% at quarter-end, compared to 2.38% a year ago.

Commercial Lending Segment

Commercial loans were $116.1 million at March 31, 2025, compared to $106.6 million a year ago.
The average interest rate on the portfolio was 13.14%, compared to 13.00% a year ago.

Taxi Medallion Lending Segment

The Company collected $2.6 million of cash on taxi medallion-related assets during the quarter.
Total net taxi medallion assets declined to $6.8 million, a 37% reduction from a year ago, and represented less than 0.5% of the Company's total assets, as of March 31, 2025.

Capital Allocation

Quarterly Dividend

The Board of Directors declared a quarterly dividend of $0.12 per share, payable on May 30, 2025, to shareholders of record at the close of business on May 15, 2025.

Stock Repurchase Plan

During the first quarter of 2025, the Company repurchased 60,185 shares of its common stock at an average cost of $8.83 per share for $0.5 million.
As of March 31, 2025, the Company had $14.9 million remaining under its $40 million stock repurchase program.

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

Date: Thursday, May 1, 2025
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 1Q25 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 Thursday, May 8, 2025

U.S. dial-in number: (844) 512-2921
International dial-in number: (412) 317-6671
Passcode: 1019 8552

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

Medallion Financial Corp. Reports 2025 First Quarter Results