Medallion Financial Corp. · NASDAQ:MFIN
Medallion Financial — Q1 2023 Earnings Presentation
13 slides from Medallion Financial's earnings presentation, May 2, 2023
Slide 1: 1st Quarter 2023 Earnings Supplement
1ST QUARTER 2023 EARNINGS SUPPLEMENT May 1, 2023
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. (“Medallion Financial Corp.,” “MFIN” or “Company”). Words such as “believes,” “expects,” “projects,” “anticipates” and “futur
Slide 3: Medallion Financial Corp. – 1Q Snapshot
Medallion Financial Corp. – 1Q SNAPSHOT Primary Business Lines Other Businesses Our Differentiation Consumer Lending – Recreation Medallion Lending High Net Interest Margin • $1.2B of loans • Total assets under $21M • 8.4% on gross loans • 14.42% avg. interest rate • Cash collections of $13M • 8.7%
Slide 4: 2023 Growth
2023 Growth 1. Consumer lending portfolio – recreation (RV and marine) grew 21% from 1Q 22 2. Consumer lending portfolio – home improvement grew 41% from 1Q 22 3. Commercial lending portfolio grew 22% from 1Q 22 We believe our business plan positions us to further deliver shareholder value. Medallio
Slide 5: 2023 1Q Financial Summary
2023 1Q FINANCIAL SUMMARY Net interest income grew 21% from the prior year quarter to $43.6M Net interest margin of 8.42% on gross loans and 8.71% on net loans Net income of $15.4M Diluted EPS of $0.67, including $0.28 related to medallion asset recoveries Loan originations of $227M, up 6%
Slide 6: Loan Portfolio Growth and Mix Optimization
Loan Portfolio Growth and Mix Optimization Loan Portfolio at 3/31/23 Growth vs. Type of Loan 12/31/18 3/31/23 12/31/18 Recreation $587 (58%) $1,213 (61%) +107% Home Improvement $183 (18%) $670 (34%) +266% Home Commercial $64 (6%) $95 (5%) +48% Improvement CONSUMER + COMM $834 (82%) $1,978 (>99%) +13
Slide 7: Loan Portfolio Growth
Loan Portfolio Growth Net Loan Balance (in millions) $2,000 $1,914 $1,900 $1,853 $1,794 $1,800 $1,700 $1,675 $1,600 $1,519 $1,500 $1,439 $1,400 $1,372 $1,294 $1,300 $1,201 $1,200 $1,172 $1,100 $1,000 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Medallion Financial Corp. Quarterly Earnings Suppl
Slide 8: Financial Performance: Net Interest Income
Financial Performance Net Interest Income (in millions) $43.6 $43.6 $42.0 $40.0 $38.9 $35.6 $35.9 $35.0 $34.1 $29.5 $30.0 $28.5 $28.7 $25.0 $20.0 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Medallion Financial Corp. Quarterly Earnings Supplement 8
Slide 9: Financial Performance: Net Income
Financial Performance Net Income (in millions) (1) 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 $25.0 $19.5 $20.0 $15.9 $15.4 $15.0 $13.3 $13.1 $10.3 $9.8 $10.0 $8.4 $6.5 $7.6 $5.0 $0.0 (1) Reflects Net Income Attributable to Medallion Financial Corp. Medallion Financial Corp. Quarterly Earning
Slide 10: Driving High Net Interest Margin
Driving High Net Interest Margin Interest Yield vs. Cost of Funds vs. Net Interest Margin of Net Loans 12.00% Interest Yield ($ in millions) 1Q 22 1Q 23 10.00% Interest income $43.3 $55.8 8.00% Interest expense 7.4 12.2 Net Interest Margin Interest income, net $35.9 $43.6 6.00% 4.00% 2.00% Cost of F
Slide 11: Resilience of Consumer Lending Segments
Resilience of Consumer Lending Segments Medallion Bank Consumer Loan Charge-offs as a Percentage of Total Consumer Portfolio Managed profitably through the Great 10.00% Recession and returned to pre-Recession levels by end of 2011 Added Home Improvement Prime Credit Lending Segment in 2012 7.50%
Slide 12: Focus on Enhanced Operating Efficiency
Focus on Enhanced Operating Efficiency Quarterly Net Interest Income (NII) vs. Operating Costs(1) (in 000’s) ($ in FY FY FY FY YTD millions) 2019 2020 2021 2022 1Q 23 42,000 Net Interest $97.5 $110.8 $127.8 $160.4 $43.6 Income 37,000 Operating $52.2 $55.7 $56.4 $72.1 $18.4 32,000 Expenses(1) Pct. of
Slide 13: Thank You
Thank You. InvestorRelations@medallion.com (212) 328-2176 Building on a legacy of experience, diversification, and success