Medallion Financial Corp. · NASDAQ:MFIN
Medallion Financial — Q3 2023 Earnings Presentation
13 slides from Medallion Financial's earnings presentation, Oct 31, 2023
Slide 1: 3rd Quarter 2023 Earnings Supplement
3RD QUARTER 2023 EARNINGS SUPPLEMENT October 30, 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. (“MFIN” or the “Company”). Words such as “believes,” “expects,” “projects,” “anticipates” and “future” or similar expressions
Slide 3: Medallion Financial Corp. – 3Q Snapshot
Medallion Financial Corp. – 3Q Snapshot Primary Business Lines Other Businesses Our Differentiation Consumer Lending – Recreation Medallion Lending High Net Interest Margin • $1.3B of loans • Net assets of $16.2M • 8.35% on gross loans • 14.73% avg. interest rate • Cash collections of $5.7M • 8.64%
Slide 4: 2023 Growth
2023 Growth 1. Consumer lending portfolio – recreation (RV and marine) grew 15% from 3Q 22 2. Consumer lending portfolio – home improvement grew 30% from 3Q 22 3. Commercial lending portfolio – $9 million of loan originations in the quarter Medallion Financial Corp. Quarterly Earnings Supplement 4
Slide 5: 2023 3Q Financial Summary
2023 3Q Financial Summary • Net interest income grew 16% from the prior year quarter to $48.8M • Net interest margin of 8.35% on gross loans and 8.64% on net loans • Net income of $11.2M for the quarter • Diluted EPS of $0.48, including $0.10 related to medallion asset recoveries • Loan originations
Slide 6: Loan Portfolio Growth and Mix Optimization
Loan Portfolio Growth and Mix Optimization Loan Portfolio at 9/30/23 Growth vs. Type of Loan 12/31/18 9/30/23 12/31/18 Recreation $587 (58%) $1,346 (61%) +129% Home Improvement $183 (18%) $751 (34%) +310% Home Commercial $64 (6%) $100 (5%) +56% Improvement CONSUMER + COMM $834 (82%) $2,197 (>99%) +1
Slide 7: Loan Portfolio Growth
Loan Portfolio Growth Loan Balance ($ in millions) $2,203 $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 $1,000 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Medallion Financial Corp. Quarterly Earnings Supplement
Slide 8: Financial Performance: Net Interest Income
Financial Performance Net Interest Income ($ in millions) $50.0 $48.8 $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 $20.0 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Medallion Financial Corp. Quarterly Earnings Supplement 8
Slide 9: Financial Performance: Net Income
Financial Performance Net Income ($ in millions) (1) $25.0 $20.0 $19.5 $15.9 $15.4 $15.0 $14.2 $13.3 $13.1 $11.2 $10.3 $9.8 $10.0 $8.4 $7.6 $6.5 $5.0 $0.0 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 (1) Reflects Net Income Attributable to Medallion Financial Corp. Medallion Financial
Slide 10: Driving Net Interest Income
Driving Net Interest Income Interest Income vs. Interest Expense 70.0 ($ in millions) 3Q 22 3Q 23 60.0 Interest income $51.7 $65.9 50.0 Interest expense 9.7 17.1 40.0 Interest income, net $42.0 $48.8 Interest Income 30.0 Net Interest Income Net Interest Margin – Gross 8.63% 8.35% Net Interest Margin
Slide 11: Resilience of Consumer Lending Segments
Resilience of Consumer Lending Segments Medallion Bank Consumer Loan Charge-offs as a Percentage of Total Consumer Portfolio Managed profitably through the Great 10.00% Recession and returned to pre-Recession levels by the end of 2011 Added Home Improvement Prime Credit Lending Segment in 2012 7.5
Slide 12: Focus on Enhanced Operating Efficiency
Focus on Enhanced Operating Efficiency Quarterly Net Interest Income (NII) vs. Operating Costs(1) (in 000’s) ($ in FY FY FY FY YTD millions) 2019 2020 2021 2022 3Q 23 47,000 Net Interest $97.5 $110.8 $127.8 $160.4 $139.1 42,000 Income 37,000 Operating $52.2 $55.7 $56.4 $72.1 $56.5 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