Core Insights - Medallion Bank reported solid financial performance for the fourth quarter and full year of 2024, with quarterly earnings of $15.6 million and net interest income exceeding $53 million [4][6]. 2024 Fourth Quarter Highlights - Quarterly net income was $15.6 million, down from $21.9 million in the same quarter of the previous year [6]. - Net interest income for the quarter was $53.1 million, compared to $48.9 million in the prior year quarter [6]. - The bank's total provision for credit losses was $20.5 million, significantly higher than $9.7 million in the prior year quarter [6]. - Annualized net charge-offs were 3.28% of average loans outstanding, up from 1.04% in the prior year quarter [6]. - The recreation loan portfolio grew 15% to $1.543 billion as of December 31, 2024 [7]. 2024 Full-Year Highlights - Full-year net income was $60.6 million, down from $79.9 million in 2023 [6]. - Total net interest income for the year was $204.7 million, compared to $188.9 million in 2023 [6]. - The total provision for credit losses for the year was $75.8 million, compared to $36.5 million in 2023 [6]. - The total loan portfolio grew by 13% to $2.4 billion [6]. - The bank's total assets reached $2.5 billion, with total capital at $382.4 million as of December 31, 2024 [6]. Recreation Lending Segment - Loan originations in the recreation lending segment were $72.2 million in the fourth quarter, compared to $62.7 million in the prior year quarter [7]. - For the year, recreation loan originations totaled $526.6 million, up from $447.0 million in 2023 [7]. - Annualized net charge-offs for recreation loans were 4.35% in the fourth quarter, compared to 4.23% in the prior year quarter [7]. Home Improvement Lending Segment - The home improvement loan portfolio grew 9% to $827.2 million as of December 31, 2024 [11]. - Loan originations for home improvement loans were $82.5 million in the fourth quarter, compared to $66.0 million in the prior year quarter [11]. - The provision for home improvement credit losses was $4.4 million in the fourth quarter, down from $6.9 million in the prior year quarter [11]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.50 per share on the Bank's Series F Preferred Stock, payable on April 1, 2025 [8].

Core Viewpoint - The SEC lawsuit against Medallion Financial Corp. (MFIN) and its COO Andrew Murstein is nearing resolution, with increasing pressure on the defendants to settle and implement governance changes to restore investor confidence [1][2][4]. Legal Proceedings - Judge Lewis Kaplan denied the majority of MFIN and Murstein's motion to dismiss the SEC lawsuit, which alleges inflated asset values, fraud, and other violations [2]. - A co-defendant, Larry Meyers, has reached a settlement with the SEC, potentially leaving MFIN and Murstein to face the charges alone [2]. - The SEC has indicated progress in settlement discussions with MFIN and Murstein, with a deadline set for February 25, 2025, to finalize any agreements [2]. Financial Implications - MFIN has reportedly spent approximately $8 million in legal fees defending Murstein, which has negatively impacted the company's credibility and valuation [3][4]. - The SEC-related legal fees for MFIN totaled $18.9 million in 2022 and 2023, significantly above historical averages [16]. Governance Recommendations - ZimCal Asset Management has proposed several governance changes to MFIN's board, including declassifying the board, separating the roles of chairperson and CEO, and appointing an independent director as chairperson [5]. - Other recommendations include establishing a mandatory retirement age for board members, reducing family control on the board, and initiating an independent investigation into Murstein's behavior [5][6]. Accountability Measures - ZimCal has urged MFIN to enforce its own policies regarding accountability for executive conduct, particularly in light of the SEC lawsuit [6][7]. - The company's Compensation Recoupment Policy, which allows for clawback of compensation in cases of financial restatement or detrimental conduct, has been called into question due to recent changes that appear to protect Murstein [7]. Strategic Focus - ZimCal emphasizes the need for MFIN to resolve the SEC lawsuit as a critical first step towards improving the company's governance and restoring shareholder value [8].

Financial Performance - Total assets were $2.9 billion, an increase from $2.6 billion as of December 31, 2023[96]. - Total interest income for the nine months ended September 30, 2024, was $142.9 million, up from $123.3 million in the prior year[131]. - Net income after taxes for the nine months ended September 30, 2024, was $19.6 million, down from $33.0 million in the prior year[131]. - Total revenue for the three months ended September 30, 2023, was $1,854,000, compared to $6,370,000 in the same period in 2022, representing a decrease of 70.0%[121]. - Net income after taxes for the three months ended September 30, 2024, was $455,000, a significant improvement from a net loss of $2,525,000 in the same period of 2023[143]. Loan Portfolio - Consumer loans represented 95% of the gross loan portfolio, while commercial loans accounted for 4%[96]. - Total loans reached $2,445,886 thousand, an increase of 11.87% compared to $2,185,808 thousand in the previous year[103]. - Total loans reached $2,319,136, with a yield of 12.02% for the nine months ended September 30, 2024, compared to $2,065,650 and 11.62% for the same period in 2023[107]. - The company originated $454.4 million in recreation loans during the nine months ended September 30, 2024, compared to $384.3 million in the prior year period[127]. - The commercial lending segment originated $7,000,000 in new commercial loans during the nine months ended September 30, 2024, a decrease of 58% compared to $16,700,000 in the same period of 2023[136]. Credit Losses and Allowances - The allowance for credit losses on loans increased to $77.6 million post-ASC 326 adoption[99]. - The provision for credit losses for the three months ended September 30, 2024, was $20.2 million, up from $14.5 million in the same period of 2023, reflecting an increase of approximately 39.3%[114]. - The allowance for credit losses as of September 30, 2024, was $96.5 million, representing 3.88% of total loans, compared to $84.2 million or 3.80% of total loans as of December 31, 2023[114]. - Total charge-offs for the three months ended September 30, 2024, were $20,500 thousand, compared to $15,574 thousand for the same period in 2023, representing a 31.1% increase[116]. - The total charge-offs for the nine months ended September 30, 2024, reached $62,189 thousand, compared to $46,533 thousand in 2023, reflecting a year-over-year increase of 33.6%[116]. Interest Income and Expenses - Net interest income for the three months ended September 30, 2024, was $52,737 thousand, compared to $48,784 thousand for the same period in 2023[103]. - Interest income increased due to growth in consumer loan portfolios and higher yields on interest-earning assets[111]. - Interest expense rose primarily from increased borrowing costs linked to higher deposits and total borrowings[111]. - The average yield on interest-earning assets was 12.17%, compared to 11.66% in the previous year[103]. - The average cost of interest-bearing liabilities increased to 4.05%, up from 3.28% year-over-year[103]. Strategic Initiatives - The Bank launched a strategic partnership program with fintech companies in 2019, continuing to evaluate additional partnerships[96]. - The company is considering various alternatives for the Bank, including a potential initial public offering or sale[96]. - The company continues to seek SBA funding through Medallion Capital for attractive rates[111]. - The company is exploring various financing options, including the sale or spinoff of certain assets, to enhance liquidity and support growth[153]. Economic Factors - The company continues to monitor economic factors such as global supply chain disruptions and inflation that may affect loan demand[96]. - The Federal Reserve's decision to decrease interest rates by 50 basis points in September 2024 may impact both loan origination rates and the cost of new borrowings[108]. - The company expects the cost of funds to continue increasing as new certificates of deposit are issued to replace maturing ones, influenced by prevailing market interest rates[108]. Asset Management - Total stockholders' equity increased to $356,561 thousand, compared to $322,945 thousand, reflecting a growth of 10.43%[103]. - Total liabilities rose to $2,261,667, compared to $2,022,455 in the prior year, reflecting growth in the lending business[107]. - The company has a total cash balance of $187,929,000 as of September 30, 2024, compared to $149,845,000 on December 31, 2023[155]. - The total outstanding debt was $2.4 billion, with deposits making up 88% of this amount at an average rate of 3.68%[151]. Market Presence - The company reported a total of 315 taxi medallions in the New York City market as of September 30, 2024, indicating ongoing market presence[124]. - The company has identified a need for adjustments in collateral valuation due to the short-term nature of the liquidation process for recreational loans[124].

: :Dil FINTECH 3rd Quarter 2024 Earnings Supplement - October 29, 2024 Safe Harbor Information This presentation contains certain forward-looking statements, including statements with regard to the future performance of Medallion Financial Corp. ("MFIN" or the "Company"). Words such as "believes," "expects," "projects," "anticipates" and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on information available to us at the time o ...

Financial Data and Key Metrics Changes - The company reported net income of $8.6 million and earnings per share of $0.37 for Q3 2024, driven by strong loan origination activity and improved credit quality [6][21] - Year-to-date net income reached over $25 million, translating to $1.09 per share, reflecting a positive trend in financial performance [7] - Net interest income grew 8% year-over-year to $52.7 million, with a net interest margin of 8.11%, slightly down from the previous quarter [15][18] Business Line Data and Key Metrics Changes - Recreation Lending segment saw $139 million in new loan originations, a 50% increase from Q3 2023, although down sequentially from Q2 [9] - Home Improvement Lending segment grew 8% year-over-year, reaching $814 million, with an average interest rate of 9.76% [10] - Commercial Lending segment remained stable at $110 million, maintaining an average interest rate of nearly 13% [11] Market Data and Key Metrics Changes - The current loan portfolio increased to $2.5 billion, a 13% rise from the previous year, with a corresponding yield increase of 47 basis points to 11.75% [18] - The average cost of funds was 4.05%, up 77 basis points from a year ago, while the average interest rate on deposits was 3.68% [17] Company Strategy and Development Direction - The company is focused on enhancing its borrower base by targeting prime to super prime borrowers, reducing subprime credit exposure [8] - Capital allocation strategy includes a $40 million share buyback plan, with $1 million repurchased in the quarter and a 10% increase in quarterly dividends to $0.11 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the potential for a declining interest rate environment, which could enhance net interest margins [8] - The company anticipates that the current economic conditions will not drastically change, allowing for stable performance moving forward [33] Other Important Information - The provision for credit loss was $20.2 million for the quarter, reflecting an increase from previous quarters, with a notable benefit from taxi medallion loans [19] - The adjusted tangible book value increased to $10.17, indicating a positive trend in the company's valuation [43] Q&A Session Summary Question: Any non-recurring items in the quarter? - Management confirmed no significant non-recurring items, noting elevated taxi medallion recoveries [22] Question: Is your reserve ratio a function of CECL? - Management affirmed that the reserve ratio is based on historical losses to project future loss experiences [23] Question: Does Fed easing affect the reserve calculation? - Management indicated that while Fed easing may help delinquencies, the reserve ratio is primarily driven by delinquencies and historical loss experiences [24] Question: Should we expect lower loan yields due to higher quality clients? - Management stated that they expect to maintain high origination levels and continue to see increases in yields [25] Question: What was the EPS benefit from taxi medallion collections? - The $4.1 million in collections translated to approximately $0.08 per share benefit [30] Question: What is the outlook for loan originations? - Management expects Q4 to be less active than Q3, with potential portfolio contraction before growth resumes in Q1 [29] Question: How is the margin outlook? - Management believes they are nearing a bottom for net interest margin, with expectations for improvement as cost of funds stabilizes [34] Question: What are the economics of the fintech volume? - The fintech partnership generated approximately $200,000 in income from $40 million in volume, with plans for growth in this area [36][38] Question: What is the strategy for capital returns? - Management emphasized a commitment to shareholder returns through dividends and share buybacks, without committing to a specific annual increase [40][41]

Medallion Financial (MFIN) reported $53.32 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 0.4%. EPS of $0.37 for the same period compares to $0.48 a year ago. The reported revenue represents a surprise of +0.84% over the Zacks Consensus Estimate of $52.88 million. With the consensus EPS estimate being $0.36, the EPS surprise was +2.78%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations ...

Medallion Financial (MFIN) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 2.78%. A quarter ago, it was expected that this business development company would post earnings of $0.33 per share when it actually produced earnings of $0.30, delivering a surprise of -9.09%. Over the last f ...

Exhibit 99.1 FOR IMMEDIATE RELEASE: MEDALLION FINANCIAL CORP. REPORTS 2024 THIRD QUARTER RESULTS NEW YORK, NY – October 29, 2024 – 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 $ ...

SALT LAKE CITY, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Medallion Bank (Nasdaq: MBNKP, the "Bank"), an FDIC-insured bank specializing in consumer loans for the purchase of recreational vehicles, boats, and home improvements, as well as loan products and services offered through fintech strategic partners, today announced its results for the quarter ended September 30, 2024. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN). 2024 Third Quarter Highlights Net income of $15.5 million, ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Medallion Financial (MFIN) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Oct ...