Medallion Financial Corp. · NASDAQ:MFIN
Medallion Financial — Q1 2024 Earnings Presentation
13 slides from Medallion Financial's earnings presentation, May 1, 2024
Slide 1: 1st Quarter 2024 Earnings Supplement
1ST QUARTER 2024 EARNINGS SUPPLEMENT April 30, 2024
Slide 2: Safe Harbor Information
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
Slide 3: Company Snapshot – 1Q 2024
Company Snapshot – 1Q 2024 Primary Business Lines Other Businesses Our Differentiation Consumer Lending – Recreation Taxi Medallion Lending High Net Interest Margin • $1.4B of loans • Net assets of $10.8M • 8.10% on gross loans • $105.8M loan originations • $3.1M of cash collections • 8.39% on net l
Slide 4: Financial Summary – 1Q24
Financial Summary – 1Q24 • Net interest income grew 10% from the prior year quarter to $47.9M • Net interest margin of 8.10% on gross loans and 8.39% on net loans • Net income of $10.0M for the quarter, compared to $15.4 million in the prior year quarter • Diluted EPS of $0.42, including $0.04 relat
Slide 5: Loan Portfolio Growth and Mix Optimization
Loan Portfolio Growth and Mix Optimization Loan Portfolio at 3/31/24 3/31/24 vs. Type of Loan 3/31/23 12/31/23 3/31/24 3/31/23 Recreation $1,213 (61%) $1,336 (60%) $1,365 (61%) +13% Home Improvement $670 (34%) $761 (34%) $752 (34%) +12% Commercial $95 (5%) $115 (5%) $107 (5%) +13% Home Improvement C
Slide 6: Loan Portfolio Growth
Loan Portfolio Growth Loan Balance ($ in millions) $2,203 $2,216 $2,228 $2,200 $2,157 $1,984 $2,000 $1,917 $1,856 $1,800 $1,735 $1,600 $1,569 $1,489 $1,420 $1,400 $1,341 $1,259 $1,200 $1,000 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Medallion Financial Corp. Quarterly Earnings
Slide 7: Financial Performance – Net Interest Income
Financial Performance Net Interest Income ($ in millions) $50.0 $48.8 $49.0 $47.9 $46.7 $45.0 $43.6 $43.6 $42.0 $40.0 $38.9 $35.6 $35.9 $35.0 $34.1 $29.5 $30.0 $28.7 $25.0 $20.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Medallion Financial Corp. Quarterly Earnings Supplement 7
Slide 8: Financial Performance – Net Income
Financial Performance Net Income ($ in millions) (1) $25.0 $20.0 $19.5 $15.9 $15.4 $15.0 $14.2 $14.3 $13.3 $13.1 $11.2 $10.3 $10.0 $9.8 $10.0 $8.4 $7.6 $5.0 $0.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 (1) Reflects Net Income Attributable to Medallion Financial Corp. Medalli
Slide 9: Driving Net Interest Income
Driving Net Interest Income Interest Income vs. Interest Expense 70.0 ($ in millions) 1Q 23 1Q 24 60.0 Interest income $55.8 $67.1 50.0 Interest expense 12.2 19.2 40.0 Interest income, net $43.6 $47.9 30.0 Interest Income Net Interest Income Net Interest Margin – Gross 8.42% 8.10% Net Interest Margi
Slide 10: Net Charge-Off (NCO) Activity
Net Charge-Off (NCO) Activity 1Q 2024 ($ in millions) Charge-Off Recovery NCO NCO % Recreation $18.1 $3.5 $14.6 4.4% Home Improvement 4.9 0.9 4.0 2.1% Commercial * * NM Taxi Medallion 0.9 (0.9) NM Total $23.0 $5.4 $17.6 3.2% 1Q 2023 ($ in millions) Charge-Off Recovery NCO NCO % Recreation $12.6
Slide 11: Resilience of Consumer Lending Segments
Resilience of Consumer Lending Segments Medallion Bank Consumer Loan Charge-offs as a Percentage of Total Consumer Portfolio 10.00% Managed profitably through the Great Recession and returned to pre-Recession levels by the end of 2011 7.50% Added Home Improvement Prime Credit Lending Segment in 20
Slide 12: Focus on Enhanced Operating Efficiency
Focus on Enhanced Operating Efficiency Quarterly Net Interest Income (NII) vs. Operating Costs(1) ($ In 000’s) ($ in FY FY FY FY FY 1Q millions) 2019 2020 2021 2022 2023 2024 47,000 NII $97.5 $110.8 $127.8 $160.4 $188.1 $47.9 42,000 Operating $52.2 $55.7 $56.4 $72.1 $75.6 $18.2 Costs(1) 37,000 Pct.
Slide 13: Thank You.
Thank You. InvestorRelations@medallion.com (212) 328-2176 Building on a legacy of experience, diversification, and success