SALT LAKE CITY, Jan. 30, 2025 (GLOBE NEWSWIRE) -- Medallion Bank (Nasdaq: MBNKP, the "Bank”), an FDIC-insured bank specializing in consumer loans for the purchase of recreational vehicles, boats, and home improvements, as well as loan products and services offered through fintech strategic partners, today announced its results for the quarter and year ended December 31, 2024. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

2024 Fourth Quarter Highlights

  • Net income of $15.6 million, compared to $21.9 million in the prior year quarter.
  • Net interest income of $53.1 million, compared to $48.9 million in the prior year quarter.
  • Net interest margin of 8.28%, compared to 8.62% in the prior year quarter.
  • Total provision for credit losses was $20.5 million, compared to $9.7 million in the prior year quarter. Total provision for credit losses included $0.9 million of net taxi medallion recoveries, compared to $12.0 million of net taxi medallion recoveries in the prior year quarter.
  • Annualized net charge-offs were 3.28% of average loans outstanding, compared to 1.04% in the prior year quarter.
  • In December 2024, the Bank signed a letter of intent to sell up to $121 million of recreation loans at a premium to par value.
2024 Full-Year Highlights

  • Net income of $60.6 million, compared to net income of $79.9 million in 2023.
  • Net interest income of $204.7 million, compared to $188.9 million in 2023.
  • Net interest margin of 8.48%, compared to 8.84% in 2023.
  • Total provision for credit losses was $75.8 million, compared to $36.5 million in 2023. Total provision for credit losses included $4.9 million of net taxi medallion recoveries, compared to $18.1 million of net taxi medallion recoveries in 2023.
  • Total net charge-offs were 2.82% of average loans outstanding, compared to 1.52% in 2023.
  • Return on assets and return on equity were 2.52% and 16.62%, respectively, compared to 3.74% and 24.57% in 2023.
  • Total loan portfolio grew 13% to $2.4 billion.
  • Total assets were $2.5 billion, total capital was $382.4 million, and the Tier 1 leverage ratio was 15.68% as of December 31, 2024.

Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, "We finished 2024 on a solid note, with quarterly earnings of $15.6 million and net interest income above $53 million. Volumes in our strategic partnership business tripled to $124 million from $40 million in the third quarter. As anticipated, recreation and home improvement loan volumes slowed with the winter season, and loan delinquency and net charge-offs rose in the quarter as is expected. With record recreation loan originations of more than $526 million in 2024, we initiated another loan sale - our fifth since 2016 - in preparation for the projected demand from our customers in 2025. We view loan sales as an efficient method to recycle capital that can also generate earnings when demand exceeds our capacity. Reclassifying these recreation loans as held for sale resulted in a release of $3.9 million in related allowance for credit losses. As we look ahead, our priorities remain constant: loan originations of predictable credit quality and managed growth that continues to deliver increasing net interest income while maintaining or growing our market position.”

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Recreation Lending Segment

  • The Bank's recreation loan portfolio grew 15% to $1.543 billion as of December 31, 2024, compared to $1.336 billion at December 31, 2023. Loan originations were $72.2 million in the fourth quarter 2024, compared to $62.7 million in the prior year quarter. For the year, loan originations were $526.6 million, compared to $447.0 million in 2023.
  • Net interest income was $39.4 million for the fourth quarter 2024, compared to $36.2 million in the prior year quarter. For the year, net interest income was $153.1 million, compared to $140.3 million in 2023.
  • Recreation loans were 65% of loans receivable as of December 31, 2024, compared to 64% at December 31, 2023.
  • Annualized net charge-offs were 4.35% of average recreation loans outstanding in the fourth quarter 2024, compared to 4.23% in the prior year quarter. For the year, total net charge-offs were 3.72% of average recreation loans outstanding, compared to 3.04% in 2023.
  • The provision for recreation credit losses was $17.7 million in the fourth quarter 2024, compared to $14.8 million in the prior year quarter. For the year, the provision for recreation credit losses was $68.0 million, compared to $44.6 million in 2023. The provisions for the three and twelve months ended December 31, 2024 included $3.9 million of allowance for credit losses released as $121 million of recreation loans were reclassified as held for sale.
  • The recreation allowance for credit losses was 5.00% of the outstanding balance as of December 31, 2024, compared to 4.31% of the outstanding balance as of December 31, 2023. The Bank does not record an allowance for loans held for sale, so the allowance as of December 31, 2024 relates only to the remaining recreation loans held for investment.
Home Improvement Lending Segment

  • The Bank's home improvement loan portfolio grew 9% to $827.2 million as of December 31, 2024, compared to $760.6 million at December 31, 2023. Loan originations were $82.5 million in the fourth quarter 2024, compared to $66.0 million in the prior year quarter. For the year, loan originations were $298.7 million, compared to $357.4 million in 2023.
  • Net interest income was $13.1 million for the fourth quarter 2024, compared to $12.2 million in the prior year quarter. For the year, net interest income was $50.2 million, compared to $46.6 million in 2023.
  • Home improvement loans were 35% of loans receivable as of December 31, 2024, compared to 36% at December 31, 2023.
  • Annualized net charge-offs were 1.75% of average home improvement loans outstanding in the fourth quarter 2024, compared to 1.67% in the prior year quarter. For the year, total net charge-offs were 1.78% of average home improvement loans outstanding, compared to 1.33% in 2023.
  • The provision for home improvement credit losses was $4.4 million in the fourth quarter 2024, compared to $6.9 million in the prior year quarter. For the year, the provision for home improvement credit losses was $13.5 million, compared to $17.6 million in 2023.
  • The home improvement allowance for credit losses was 2.48% of the outstanding balance at December 31, 2024, compared to 2.76% of the outstanding balance at December 31, 2023.
Series F Preferred Stock Dividend

On January 23, 2025, the Bank's Board of Directors declared a quarterly cash dividend of $0.50 per share on the Bank's Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, which trades on the Nasdaq Capital Market under the ticker symbol "MBNKP.” The dividend is payable on April 1, 2025, to holders of record at the close of business on March 17, 2025.

About Medallion Bank

Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

For more information, visit www.medallionbank.com

Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales (including loan sales), net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as "remains,” "anticipated,” "continue,” "may,” "maintain” or the negative versions of these words or other comparable words or phrases of a future or forward-looking nature. These statements may relate to our future earnings, returns, capital levels, sources of funding, growth prospects, asset quality and pursuit and execution of our strategy. Medallion Bank's actual results may differ significantly from the results discussed in such forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions "Cautionary Note Regarding Forward-Looking Statements” and "Risk Factors” included in Medallion Bank's Form 10-K for the year ended December 31, 2023, and in its Quarterly Reports on Form 10-Q, filed with the FDIC. Medallion Bank's Form 10-K, Form 10-Qs and other FDIC filings are available in the Investor Relations section of Medallion Bank's website. Medallion Bank's financial results for any period are not necessarily indicative of Medallion Financial Corp.'s results for the same period.  

Company Contact:

Investor Relations

212-328-2176

[email protected]

MEDALLION BANK

STATEMENTS OF OPERATIONS

(UNAUDITED)

 
 Three Months Ended December 31, For the Years Ended December 31,
(In thousands)2024 2023 2024 2023
Interest income       
Loan interest including fees$71,577 $61,668 $268,914 $231,496
Investments 1,564  1,585  6,306  5,171
Total interest income 73,141  63,253  275,220  236,667
Interest expense 20,039  14,401  70,509  47,785
Net interest income 53,102  48,852  204,711  188,882
Provision for credit losses 20,500  9,717  75,845  36,457
Net interest income after provision for credit losses 32,602  39,135  128,866  152,425
Other non-interest income 16  839  2,134  2,102
Non-interest expense       
Salaries and benefits 5,014  4,997  19,985  19,001
Loan servicing 3,173  2,903  12,248  11,626
Collection costs 1,517  1,492  6,095  5,965
Regulatory fees 969  692  3,795  3,176
Professional fees 508  631  1,694  2,243
Information technology 329  281  1,186  1,031
Occupancy and equipment 541  206  1,167  830
Other 938  818  3,624  3,524
Total non-interest expense 12,989  12,020  49,794  47,396
Income before income taxes 19,629  27,954  81,206  107,131
Provision for income taxes 4,040  6,011  20,624  27,279
Net income$15,589 $21,943 $60,582 $79,852
Less: Preferred stock dividends 1,512  1,512  6,047  6,047
Net income attributable to common shareholder$14,077 $20,431 $54,535 $73,805
            

MEDALLION BANK
BALANCE SHEETS
(UNAUDITED)
 
(In thousands)December 31, 2024 December 31, 2023
Assets   
Cash and federal funds sold$126,196  $110,043 
Investment securities, available-for-sale 54,805   54,282 
Loans held for sale, at the lower of amortized cost or fair value 128,226   - 
    
Loan receivables, inclusive of net deferred loan acquisition cost and fees 2,249,613   2,100,338 
Allowance for credit losses (91,638)  (79,283)
Loans, net 2,157,975   2,021,055 
Loan collateral in process of foreclosure 3,326   4,165 
Fixed assets and right-of-use lease assets, net 9,126   8,140 
Deferred tax assets 14,036   12,761 
Accrued interest receivable 15,083   13,439 
Other assets 40,326   38,171 
Total assets$2,549,099  $2,262,056 
Liabilities and Shareholders' Equity   
Liabilities   
Deposits and other funds borrowed$2,125,071  $1,866,657 
Accrued interest payable 5,586   4,029 
Income tax payable 17,951   21,219 
Other liabilities 17,204   17,509 
Due to affiliates 910   849 
Total liabilities 2,166,722   1,910,263 
Shareholder's Equity   
Series E Preferred stock 26,303 Advertisement

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