Slide 1: 2nd Quarter 2023 Earnings Supplement
2ND QUARTER 2023 EARNINGS SUPPLEMENT July 24, 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. – 2Q Snapshot
Medallion Financial Corp. – 2Q SNAPSHOT Primary Business Lines Other Businesses Our Differentiation Consumer Lending – Recreation Medallion Lending High Net Interest Margin • $1.3B of loans • Net assets under $18M • 8.48% on gross loans • 14.62% avg. interest rate • Cash collections of $10.6M • 8.77
Slide 4: 2023 Growth
2023 Growth 1. Consumer lending portfolio – recreation (RV and marine) grew 21% from 2Q 22 2. Consumer lending portfolio – home improvement grew 38% from 2Q 22 3. Commercial lending portfolio – $5M of loan originations during the quarter We believe our business plan positions us to further deliver s
Slide 5: 2023 2Q Financial Summary
2023 2Q FINANCIAL SUMMARY • Net interest income grew 20% from the prior year quarter to $46.7M • Net interest margin of 8.48% on gross loans and 8.77% on net loans • Net income of $14.2M • Diluted EPS of $0.62, including $0.22 related to medallion asset recoveries • Loan originations of $346M, up 14
Slide 6: Loan Portfolio Growth and Mix Optimization
Loan Portfolio Growth and Mix Optimization Loan Portfolio at 6/30/23 Growth vs. Type of Loan 12/31/18 6/30/23 12/31/18 Recreation $587 (58%) $1,331 (62%) +127% Home Improvement $183 (18%) $728 (34%) +298% Home Commercial $64 (6%) $93 (4%) +45% Improvement CONSUMER + COMM $834 (82%) $2,152 (>99%) +15
Slide 7: Loan Portfolio Growth
Loan Portfolio Growth Loan Balance (in millions) $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 Medallion Financial Corp. Quarterly Earnings Supplement 7
Slide 8: Financial Performance: Net Interest Income
Financial Performance Net Interest Income (in millions) $50.0 $46.7 $45.0 $43.6 $43.6 $42.0 $40.0 $38.9 $35.6 $35.9 $35.0 $34.1 $30.0 $28.7 $29.5 $28.5 $25.0 $20.0 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 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 $13.3 $13.1 $10.3 $10.0 $9.8 $8.4 $7.6 $6.5 $5.0 $0.0 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 (1) Reflects Net Income Attributable to Medallion Financial Corp. Medallion Financial Corp. Quarte
Slide 10: Driving Net Interest Income
Driving Net Interest Income Interest Income vs. Interest Expense 60.0 ($ in millions) 2Q 22 2Q 23 50.0 Interest income $47.1 $61.7 40.0 Interest expense 8.2 15.0 Interest Income Interest income, net $38.9 $46.7 30.0 Net Interest Income Net Interest Margin - Net 9.07% 8.77% 20.0 Net Interest Margin -
Slide 11: Resilience of Consumer Lending Segments
Resilience of Consumer Lending Segments Medallion Bank Consumer Loan Charge-offs as a Percentage of Total Consumer Portfolio Managed profitably through the Great 10.00% Recession and returned to pre-Recession levels by end of 2011 Added Home Improvement Prime Credit Lending Segment in 2012 7.50%
Slide 12: Focus on Enhanced Operating Efficiency
Focus on Enhanced Operating Efficiency Quarterly Net Interest Income (NII) vs. Operating Costs(1) (in 000’s) ($ in FY FY FY FY YTD 47,000 millions) 2019 2020 2021 2022 2Q 23 42,000 Net Interest $97.5 $110.8 $127.8 $160.4 $90.3 Income 37,000 Operating $52.2 $55.7 $56.4 $72.1 $37.4 Expenses(1) 32,000
Slide 13: Thank You.
Thank You. InvestorRelations@medallion.com (212) 328-2176 Building on a legacy of experience, diversification, and success