Business
Medallion Financial Corp. Reports 2024 Third Quarter Results
NEW YORK, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a specialty finance company that
About this update from Medallion Financial Corp.
[{"type":"text","content":"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 to 8.35% in the prior year quarter, and on net loans it was 8.42%, compared to 8.64% 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 $0.37 per share, our earnings included approximately $0.07 per share of additional allowance tied to the growth of our consumer lending segments, which saw recreation and home improvement loans grow 4% and 5% from the previous quarter to a combined $2.4 billion, with over $235 million in originations this quarter. We continue to be comfortable with the overall credit performance of these two consumer segments, which carry weighted average coupons of 14.92% for recreation loans and 9.76% for home improvement loans. During the quarter we originated recreation loans at an average rate of 16.33% and home improvement loans at an average rate of 10.75%. Our net interest income reached $52.7 million during the quarter, up 6% from just a quarter ago. We remain cautiously optimistic that the solid pe...