Medallion Financial Corp. · NASDAQ:MFIN
Medallion Financial — Investor Presentation (November 2021)
18 slides from Medallion Financial's investor presentation, Nov 15, 2021
Slide 1: Company Overview
Company Overview November 15, 2021 Building on a legacy of success
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: Summary: Growing our Core Segments
Summary Growing our Core Segments 1. Grow our largest segment in Consumer Lending – Recreation RV and boat markets remain strong Loan portfolio of $934 million, 30+% ROE, 13.78% interest yield 2. Maintain strength of our fastest growing segment in Consumer Lending – Home Improvement Top projec
Slide 4: We Are A Growth Finance Company Delivering Strong Bottom-Line Performance
We Are A Growth Finance Company Delivering Strong Bottom-Line Performance Today’s Growth Areas Other Long-Term Initiatives Medallion Bank (1) Medallion Capital Equity investment portfolio of middle FDIC regulated SBIC market and fintech companies NASDAQ: MBNKP Strategic Partnership Program via t
Slide 5: Growth In NII & Strong NIM
Lending Summary Growth In NII & Strong NIM Growing Net Interest Income Maintaining Strong Net Interest Margin $36.0 9.48% 9.18% $34.1 9.00% 8.56% 8.83% 8.80% 8.23% 8.72% 8.89% 8.84% 8.46% 8.71% $34.0 8.00% $32.0 7.00% $29.5 $30.0 $29.1 6.00% $28.5 $28.7 $28.0 5.00% $26.6 $26.5 $26.8 4.00% $26.0 $25.
Slide 6: 3Q21 Business Highlights
Strategy 3Q21 Business Highlights Continued run of strong fundamentals Fourth consecutive quarter of sequential net income growth – 3Q21 $15.9M Diluted EPS of $0.64 for the quarter and $1.39 YTD Historically low loan loss provisions, which will eventually normalize Driven by the strong per
Slide 7: Medallion Bank Consumer Lending
Medallion Bank Consumer Lending Medallion Bank Gross Loans as of 3Q21 ($1.4B as of September 30, 2021) ($M) Pools 26% Roofs 28% Consumer Lending segments are our largest and most profitable Windows 13% segments Other 33% Home Improvement Loans originated at our Medallion Bank subsidiary Loans
Slide 8: Medallion Bank Consumer Lending
Medallion Bank Consumer Lending Net Income ($M’s) Consumer Lending 60.0 50.0 52.2 40.0 47.6 30.0 $1.3B portfolio - 99% of consolidated net loans at 3Q21 29.1 20.0 10.0 Loans collateralized by recreational vehicles, boats, 0.0 trailers, and personal property installed on the home 2019 2020 3Q21 Y
Slide 9: Medallion Bank Consumer Lending - Recreation
Medallion Bank Consumer Lending - Recreation Recreation Loan Portfolio Growth(1) ($M) $1,000.0 938.7 Largest and most profitable segment, accounting for 69.5% of the total loan portfolio at 799.0 September 30, 2021 $750.0 722.4 Geographically diverse loan portfolio of $938.7 million • Average loan s
Slide 10: Medallion Bank Consumer Lending – Home Improvement
Medallion Bank Consumer Lending – Home Improvement Home Improvement Loan Growth(1) ($M) $420.0 399.0 High-quality lending segment with large growth potential, accounting for 29.5% of the loan portfolio as of September 30, 2021 334.2 • Weighted average origination FICO score of 755 $315.0 Geographica
Slide 11: Consumer Lending – Stable & Conservative Underwriting
Lending Summary Consumer Lending – Stable & Conservative Underwriting Medallion Bank Consumer Loan Charge-Offs as % of Total Portfolio 12.00% 10.00% Managed through Great Recession and returned to pre-Recession levels by end Added Home Improvement Prime Credit Lending Segment in 2012 8.00% of 2011
Slide 12: Strong Consumer Loan Economics – 50% Pretax ROE
Lending Summary Strong Consumer Loan Economics – 50% Pretax ROE Consumer Lending Return on a Hypothetical, Incremental, New Recreation $10,000 Loan – Assuming 14% Yield $1,400 $1,500 Equity $8,500 Deposits $750 / $1,500 ($100) ($300) $750 50% Pretax ROE ($250) Loan Yield Interest Loan Operating Pret
Slide 13: Commercial Lending
Lending Summary Commercial Lending As of 3Q21 Medallion Capital Highlights Loans, net(1) $74.4M Borrowers include manufacturing, business services, consumer Total Assets(1) $95.1M products, technology, distribution and arts / entertainment companies SBIC Debt $54.0M Floating, adjustable, and fix
Slide 14: Medallion Portfolio
Lending Summary Total Medallion Exposure ($M’s) Medallion Portfolio $210.0 205.4 157.7 Medallion Segment Highlights $105.0 67.4 47.3 Collected $7.6M in 3Q21 All loans are on nonaccrual status and reserved down to $0.0 collateral value 4Q18 4Q19 4Q20 3Q21 Loans backed by taxi medallions as coll
Slide 15: Strategic Partnership Program – Long Term Growth Initiative
Partnership Program Strategic Partnership Program – Long Term Growth Initiative Loan Value Originated Quarter ($ millions) 3Q20 $0.1 COVID-19 has significantly slowed initial ramp 4Q20 $1.4 2 partners to date; more in development Overview Early look at fintechs, provides for investment opportu
Slide 16: Well-Capitalized For Growth
Financial Well-Capitalized For Growth Funding and Capital Wtd Avg Rate As of 9/30/21: Balance ($M) Maturities (%) LIQUIDITY Cash and cash equivalents $ 85.4(1) FUNDING Deposits $ 1,198.8 1.26% 2021 – 2026 SBA Debentures and Borrowings 63.9 2.92% 2023 – 2031 Privately Placed Notes 121.0 7.66% 2024 –
Slide 17: Summary Financial Information and Key Metrics - 3Q21
Summary Financial Information and Key Metrics - 3Q21 ($000) As of ($000) For the Qtr Ended Summary Balance Sheet 9/30/2021 Summary Income Statement 9/30/2021 Cash and cash equivalents 85,374 Net interest income 34,071 Equity invest and investment securities 57,725 Provision (benefit) for loan losses
Slide 18: Thank You
Thank You InvestorRelations@medallion.com (212) 328-2176 Building on a legacy of success
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