Medallion Financial Corp. Reports 2023 Second Quarter Results
25 7월 2023 - 5:01AM
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 June
30, 2023.
2023 Second Quarter Highlights
- Net income was $14.2 million, or $0.62 per share, compared to
$13.3 million, or $0.54 per share, in the prior year quarter.
- $10.6 million of cash collected on taxi medallion-related
assets, with recoveries resulting in earnings of $0.22 per
share.
- Net interest income grew 20% to $46.7 million from $38.9
million in the prior year quarter.
- Net interest margin on net loans was 8.77%, compared to 9.07%
in the prior year quarter, and on gross loans it was 8.48%,
compared to 8.78% in the prior year quarter.
- Loan originations were $346 million, compared to $305 million
in the prior year quarter.
- The credit loss provision increased to $8.5 million from $7.8
million in the prior year quarter.
- Total assets grew to an all-time high of $2.5 billion at June
30, 2023, a 19% increase over June 30, 2022.
- The Company declared and paid a quarterly cash dividend of
$0.08 per share.
Executive Commentary – Andrew Murstein, President of
Medallion
“We are very pleased with our second quarter
results. Net interest income grew 20% over the prior year quarter
and importantly grew 7% from just one quarter ago. As we have been
saying since interest rates started to increase, we believe we will
be able to manage through the current interest rate environment by
growing our loan portfolio and passing along a portion of those
increases. Our consumer teams originated over $300 million of loans
in the quarter, which is a record second quarter for us, and led to
our loan portfolio exceeding $2 billion for the first time in our
history. We had another strong quarter of cash collections related
to our medallion assets, with over $10 million collected. This
helped us deliver one of our strongest quarters ever, with earnings
per share of $0.62.”
Business Segment Highlights
Recreation Lending Segment
- Originations were $190.0 million during the quarter, compared
to $170.2 million a year ago.
- Recreation loans grew 21% to $1.3 billion as of June 30, 2023,
compared to $1.1 billion a year ago.
- Recreation loans were 62% of total loans as of June 30, 2023,
compared to 63% a year ago.
- Net interest income grew 14% to $33.5 million for the quarter,
from $29.4 million in the prior year quarter.
- The average interest rate was 14.62% at quarter-end, compared
to 14.23% a year ago.
- Recreation loans 90 days or more past due were $5.0 million, or
0.39% of gross recreation loans, as of June 30, 2023, compared to
$3.8 million, or 0.36%, a year ago.
Home Improvement Lending Segment
- Originations were $117.0 million during the quarter, compared
to $105.2 million a year ago.
- Home improvement loans grew 38% to $728.5 million as of June
30, 2023, compared to $526.3 million a year ago.
- Home improvement loans were 34% of total loans as of June 30,
2023, compared to 30% a year ago.
- Net interest income grew 24% to $11.1 million for the quarter,
from $9.0 million in the prior year quarter.
- The average interest rate was 9.21% at quarter-end, compared to
8.50% a year ago.
- Home improvement loans 90 days or more past due were $1.1
million, or 0.16% of gross home improvement loans, as of June 30,
2023, compared to $0.4 million, or 0.07%, a year ago.
Commercial Lending Segment
- Commercial loans were $92.6 million at June 30, 2023, compared
to $96.9 million a year ago.
- The average interest rate on the portfolio was 12.64%, compared
to 12.33% a year ago.
Medallion Lending Segment
- The Company collected $10.6 million of cash on taxi
medallion-related assets during the quarter.
- Total net taxi medallion assets declined to $17.7 million
(comprised of $1.6 million of loans net of allowance for credit
losses and $16.1 million of loan collateral in process of
foreclosure), a 43% reduction from a year ago, and represented less
than 1% of the Company’s total assets, as of June 30, 2023.
Capital Allocation
Quarterly Dividend
- The Board of Directors declared a quarterly cash dividend of
$0.08 per share payable on August 31, 2023 to shareholders of
record at the close of business on August 15, 2023.
Conference Call Information
The Company will host a conference call to discuss its second
quarter financial results tomorrow, Tuesday, July 25, 2023, at 9:00
a.m. Eastern time.
As part of its earnings release, the Company has updated its
quarterly supplement presentation, which is now available at
www.medallion.com.
How to Participate
- Date: Tuesday,
July 25, 2023
- Time: 9:00 a.m.
Eastern time
- U.S. dial-in
number: (877) 407-0789
- International dial-in
number: (201) 689-8562
- Live webcast: Link
to Webcast of 2Q23 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 Tuesday, August 1.
- U.S. dial-in
number: (844) 512-2921
- International dial-in
number: (412) 317-6671
- Passcode: 1374
0079
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
StatementsPlease 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 2022 Annual Report
on Form 10-K.
Company Contact:Investor
Relations212-328-2176InvestorRelations@medallion.com
MEDALLION FINANCIAL
CORP.CONSOLIDATED BALANCE
SHEETS(UNAUDITED)
(Dollars in thousands, except share and per share data) |
|
June 30, 2023 |
|
December 31, 2022 |
|
June 30, 2022 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents, and federal funds sold |
|
$ |
124,554 |
|
|
$ |
105,598 |
|
|
$ |
126,330 |
|
Equity investments and investment securities |
|
|
65,096 |
|
|
|
58,785 |
|
|
|
61,300 |
|
Loans |
|
|
2,156,998 |
|
|
|
1,916,953 |
|
|
|
1,734,621 |
|
Allowance for credit losses |
|
|
(74,971 |
) |
|
|
(63,845 |
) |
|
|
(59,152 |
) |
Net loans receivable |
|
|
2,082,027 |
|
|
|
1,853,108 |
|
|
|
1,675,469 |
|
Goodwill and intangible assets |
|
|
172,118 |
|
|
|
172,838 |
|
|
|
173,562 |
|
Loan collateral in process of foreclosure |
|
|
16,803 |
|
|
|
21,819 |
|
|
|
26,974 |
|
Other assets |
|
|
58,539 |
|
|
|
47,731 |
|
|
|
48,496 |
|
Total
assets |
|
$ |
2,519,137 |
|
|
$ |
2,259,879 |
|
|
$ |
2,112,131 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
1,813,785 |
|
|
$ |
1,607,110 |
|
|
$ |
1,469,241 |
|
Long-term debt |
|
|
178,128 |
|
|
|
214,320 |
|
|
|
219,377 |
|
Short-term borrowings |
|
|
67,880 |
|
|
|
5,000 |
|
|
|
— |
|
Deferred tax liabilities and other tax payables |
|
|
26,840 |
|
|
|
26,753 |
|
|
|
24,048 |
|
Operating lease liabilities |
|
|
7,629 |
|
|
|
8,408 |
|
|
|
9,078 |
|
Accounts payable and other liabilities |
|
|
37,111 |
|
|
|
27,764 |
|
|
|
27,546 |
|
Total
liabilities |
|
|
2,131,373 |
|
|
|
1,889,355 |
|
|
|
1,749,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’
equity |
|
|
318,976 |
|
|
|
301,736 |
|
|
|
294,053 |
|
Non-controlling interest in
consolidated subsidiaries |
|
|
68,788 |
|
|
|
68,788 |
|
|
|
68,788 |
|
Total
equity |
|
|
387,764 |
|
|
|
370,524 |
|
|
|
362,841 |
|
Total liabilities and
equity |
|
$ |
2,519,137 |
|
|
$ |
2,259,879 |
|
|
$ |
2,112,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares outstanding |
|
|
23,345,017 |
|
|
|
23,061,673 |
|
|
|
24,239,320 |
|
Book value per
share |
|
$ |
13.66 |
|
|
$ |
13.08 |
|
|
$ |
12.13 |
|
MEDALLION FINANCIAL
CORP.CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
(Dollars in
thousands, except share and per share data) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Total interest income |
|
$ |
61,726 |
|
|
$ |
47,111 |
|
|
$ |
117,568 |
|
|
$ |
90,414 |
|
Total
interest expense |
|
|
15,035 |
|
|
|
8,230 |
|
|
|
27,275 |
|
|
|
15,605 |
|
Net
interest income |
|
|
46,691 |
|
|
|
38,881 |
|
|
|
90,293 |
|
|
|
74,809 |
|
Provision for loan
losses |
|
|
8,476 |
|
|
|
7,759 |
|
|
|
12,514 |
|
|
|
10,999 |
|
Net interest
income after provision for loan losses |
|
|
38,215 |
|
|
|
31,122 |
|
|
|
77,779 |
|
|
|
63,810 |
|
Other
income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of loans
and medallions |
|
|
1,306 |
|
|
|
2,667 |
|
|
|
3,161 |
|
|
|
4,543 |
|
Gain on equity
investments |
|
|
99 |
|
|
|
4,241 |
|
|
|
9 |
|
|
|
4,108 |
|
Write-down of loan
collateral in process of foreclosure |
|
|
(21 |
) |
|
|
(128 |
) |
|
|
(273 |
) |
|
|
(514 |
) |
Other income |
|
|
558 |
|
|
|
578 |
|
|
|
1,128 |
|
|
|
750 |
|
Total other
income, net |
|
|
1,942 |
|
|
|
7,358 |
|
|
|
4,025 |
|
|
|
8,887 |
|
Other
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
|
9,339 |
|
|
|
7,730 |
|
|
|
18,175 |
|
|
|
15,298 |
|
Loan servicing
fees |
|
|
2,361 |
|
|
|
2,119 |
|
|
|
4,583 |
|
|
|
4,072 |
|
Collection costs |
|
|
1,608 |
|
|
|
999 |
|
|
|
3,146 |
|
|
|
2,342 |
|
Professional
fees |
|
|
1,368 |
|
|
|
4,392 |
|
|
|
3,075 |
|
|
|
8,384 |
|
Other expenses |
|
|
4,327 |
|
|
|
3,573 |
|
|
|
8,416 |
|
|
|
6,749 |
|
Total other
expenses |
|
|
19,003 |
|
|
|
18,813 |
|
|
|
37,395 |
|
|
|
36,845 |
|
Income before
income taxes |
|
|
21,154 |
|
|
|
19,667 |
|
|
|
44,409 |
|
|
|
35,852 |
|
Income tax
provision |
|
|
5,472 |
|
|
|
4,856 |
|
|
|
11,854 |
|
|
|
9,687 |
|
Net income
after taxes |
|
|
15,682 |
|
|
|
14,811 |
|
|
|
32,555 |
|
|
|
26,165 |
|
Less: income
attributable to the non-controlling interest |
|
|
1,512 |
|
|
|
1,511 |
|
|
|
3,024 |
|
|
|
3,024 |
|
Total net
income attributable to Medallion Financial Corp. |
|
$ |
14,170 |
|
|
$ |
13,300 |
|
|
$ |
29,531 |
|
|
$ |
23,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.63 |
|
|
$ |
0.55 |
|
|
$ |
1.32 |
|
|
$ |
0.95 |
|
Diluted |
|
$ |
0.62 |
|
|
$ |
0.54 |
|
|
$ |
1.29 |
|
|
$ |
0.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
22,488,463 |
|
|
|
24,153,015 |
|
|
|
22,416,089 |
|
|
|
24,459,870 |
|
Diluted |
|
|
22,853,927 |
|
|
|
24,421,867 |
|
|
|
22,915,094 |
|
|
|
24,751,012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
$ |
0.16 |
|
|
$ |
0.16 |
|
Medallion Financial (NASDAQ:MFIN)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Medallion Financial (NASDAQ:MFIN)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024