Medallion Financial Corp. · NASDAQ:MFIN
Medallion Financial — Q4 2023 Earnings Presentation
14 slides from Medallion Financial's earnings presentation, Feb 21, 2024
Slide 1: 4th Quarter 2023 Earnings Supplement
4TH QUARTER 2023 EARNINGS SUPPLEMENT February 20, 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: Snapshot
Medallion Financial Corp. – December 31, 2023 Snapshot Primary Business Lines Other Businesses Our Differentiation Consumer Lending – Recreation Taxi Medallion Lending High Net Interest Margin • $1.3B of loans • Net assets of $12.1M • 8.20% 4Q / 8.38% FY on gross loans • $62.7M 4Q / $447.0M FY loan
Slide 4: 2023 Loan Growth
2023 Loan Growth 1. Consumer lending portfolio – Recreation grew 13% for the year to $1.3B – 60% of loan portfolio 2. Consumer lending portfolio – Home Improvement grew 21% for the year to $760.6M – 34% of loan portfolio 3. Commercial lending portfolio – grew 24% for the year to $114.8M – 5% of loan
Slide 5: 2023 Financial Summary
2023 Financial Summary 4Q23 Financial Highlights FY 2023 Financial Highlights • Net interest income grew 12% from the prior year • Net interest income grew 17% from the prior year to quarter to $49.0M $188.1M • Net interest margin of 8.20% on gross loans and • Net interest margin of 8.38% on gross l
Slide 6: Loan Portfolio Growth and Mix Optimization
Loan Portfolio Growth and Mix Optimization Loan Portfolio at 12/31/23 Growth vs. Type of Loan 12/31/18 12/31/23 12/31/18 Recreation $587 (58%) $1,336 (60%) +128% Home Improvement $183 (18%) $761 (34%) +316% Commercial $64 (6%) $115 (5%) +80% Home Improvement CONSUMER + COMM $834 (82%) $2,212 (>99%)
Slide 7: Loan Portfolio Growth
Loan Portfolio Growth Loan Balance ($ in millions) $2,203 $2,216 $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 $1,230 $1,200 $1,000 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Medallion Financial Corp. Quarterly Earnings
Slide 8: Financial Performance: Net Interest Income
Financial Performance Net Interest Income ($ in millions) $50.0 $48.8 $49.0 $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 $28.5 $28.7 $25.0 $20.0 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Medallion Financial Corp. Quarterly Earnings Supplement 8
Slide 9: Financial Performance: Net Income
Financial Performance Net Income ($ 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 $9.8 $10.0 $8.4 $7.6 $6.5 $5.0 $0.0 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 (1) Reflects Net Income Attributable to Medallion Financial Corp. Medallio
Slide 10: Driving Net Interest Income
Driving Net Interest Income Interest Income vs. Interest Expense 70.0 ($ in millions) 4Q 22 4Q 23 60.0 Interest income $54.5 $67.6 50.0 Interest expense 10.9 18.6 40.0 Interest income, net $43.6 $49.0 30.0 Interest Income Net Interest Income Net Interest Margin – Gross 8.59% 8.20% Net Interest Margi
Slide 11: Net Charge-Off Activity
Net Charge-Off Activity 4Q 2023 FY 2023 ($ in millions) Charge-Off Recovery NCO NCO % Charge-Off Recovery NCO NCO % Recreation $17.1 $2.7 $14.3 4.2% $50.5 $11.4 $39.1 3.0% Home Improvement 3.9 0.7 3.2 1.7% 12.3 2.9 9.4 1.3% Commercial 0.1 * 0.1 0.3% 1.0 * 1.0 1.0% Taxi Medallion * 12.0 (11.9) NM 3.8
Slide 12: Resilience of Consumer Lending Segments
Resilience of Consumer Lending Segments Medallion Bank Consumer Loan Charge-offs as a Percentage of Total Consumer Portfolio 10.00% Managed profitably through the Great Recession and returned to pre-Recession levels by the end of 2011 7.50% Added Home Improvement Prime Credit Lending Segment in 20
Slide 13: Focus on Enhanced Operating Efficiency
Focus on Enhanced Operating Efficiency Quarterly Net Interest Income (NII) vs. Operating Costs(1) (in 000’s) ($ in FY FY FY FY FY millions) 2019 2020 2021 2022 2023 47,000 Net Interest $97.5 $110.8 $127.8 $160.4 $188.1 42,000 Income Operating $52.2 $55.7 $56.4 $72.1 $75.6 37,000 Expenses(1) 32,000 P
Slide 14: Thank You.
Thank You. InvestorRelations@medallion.com (212) 328-2176 Building on a legacy of experience, diversification, and success