2023 Fourth Quarter Highlights
- Net income was
$14.3 million , or$0.60 per share, compared to$13.1 million , or$0.57 per share, in the prior year quarter. - Net interest income grew 12% to
$49.0 million from$43.6 million in the prior year quarter. - Net interest margin on net loans was 8.50%, compared to 8.86% in the prior year quarter, and on gross loans it was 8.20%, compared to 8.59% in the prior year quarter.
- Loan originations were
$169.1 million , compared to$191.9 million in the prior year quarter. - The credit loss provision increased to
$10.8 million from$9.0 million in the prior year quarter and included a net benefit of$12.1 million related to taxi medallion recoveries. - Beginning with the fourth quarter, the Board of Directors increased the quarterly dividend 25% to
$0.10 per share.
2023 Full-Year Highlights
- Net income was
$55.1 million , or$2.37 per share, compared to$43.8 million , or$1.83 per share, in the prior year. - Net interest income grew 17% to
$188.1 million from$160.4 million in the prior year. - Net interest margin on net loans was 8.68%, compared to 9.05% in the prior year quarter, and on gross loans it was 8.38%, compared to 8.73% in the prior year.
- Loan originations were
$960.0 million , compared to$983.9 million in the prior year. - Loans grew 16% to
$2.2 billion as ofDecember 31, 2023 , compared to$1.9 billion a year ago. - The credit loss provision increased to
$37.8 million from$30.1 million in the prior year and included a net benefit of$26.3 million related to taxi medallion recoveries. - Total assets grew to
$2.6 billion atDecember 31, 2023 , a 15% increase overDecember 31, 2022 .
Executive Commentary –
"Once again, we continue to be quite pleased with our bottom-line results. This was our highest annual total earnings and highest annual earnings per share in our history, with each of our businesses contributing to the success. In the past three years we have generated
Business Segment Highlights
Recreation Lending Segment
- Originations were
$62.7 million during the quarter, compared to$79.3 million a year ago. - Recreation loans grew 13% to
$1.3 billion , or 60% of total loans, as ofDecember 31, 2023 , compared to$1.2 billion , or 62% of total loans, a year ago. - Net interest income grew 8% to
$35.2 million for the quarter, from$32.7 million in the prior year quarter. - The average interest rate was 14.79% at year-end, compared to 14.28% a year ago.
- Recreation loans 90 days or more past due were
$9.1 million , or 0.70% of gross recreation loans, as ofDecember 31, 2023 , compared to$7.4 million , or 0.64%, a year ago. - Allowance for credit loss rate was 4.31% at year-end, compared to 3.55% a year ago and 4.39% with the implementation of CECL on
January 1, 2023 .
Home Improvement Lending Segment
- Originations were
$66.0 million during the quarter, compared to$97.1 million a year ago. - Home improvement loans grew 21% to
$760.6 million , or 34% of total loans, as ofDecember 31, 2023 , compared to$626.4 million , or 33% of total loans, a year ago. - Net interest income grew 16% to
$11.7 million for the quarter, from$10.1 million in the prior year quarter. - The average interest rate was 9.51% at year-end, compared to 8.65% a year ago.
- Home improvement loans 90 days or more past due were
$1.5 million , or 0.20% of gross home improvement loans, as ofDecember 31, 2023 , compared to$0.6 million , or 0.09%, a year ago. - Allowance for credit loss rate was 2.76% at year-end, compared to 1.81% a year ago and 2.05% with the implementation of CECL on
January 1, 2023 .
Commercial Lending Segment
- Commercial loans were
$114.8 million at 2023, compared to$92.9 million a year ago. - The average interest rate on the portfolio was 12.87%, compared to 12.23% a year ago.
Taxi Medallion Lending Segment
- The Company collected
$16.2 million of cash on taxi medallion related assets during the quarter and$45.2 million of cash on taxi medallion-related assets during the year, with net recoveries contributing earnings of$0.33 per share for the quarter and$0.93 per share for the year. - Total net taxi medallion assets declined to
$12.1 million (comprised of$2.1 million of loans net of allowance for credit losses and$10.0 million of loan collateral in process of foreclosure), a 51% reduction from a year ago, and represented less than 0.5% of the Company’s total assets, as ofDecember 31, 2023 .
Capital Allocation
Quarterly Dividend
- The Board of Directors declared a quarterly dividend of
$0.10 per share, payable onMarch 28, 2024 , to shareholders of record at the close of business onMarch 15, 2024 .
Conference Call Information
The Company will host a conference call to discuss its fourth quarter and full-year financial results tomorrow,
In connection with its earnings release, the Company has updated its quarterly supplement presentation, which is now available at www.medallion.com.
How to Participate
- Date:
Wednesday, February 21, 2024 - Time:
9:00 a.m. Eastern time U.S. dial-in number: (877) 407-0789- International dial-in number: (201) 689-8562
- Live webcast: Link to Webcast of 4Q23 Earnings Call
A link to the live audio webcast of the conference call will also be available at the Company’s IR website.
Replay Information
The webcast replay will be available at the Company's IR website until the next quarter’s results are announced.
The conference call replay will be available following the end of the call until
U.S. dial-in number: (844) 512-2921- International dial-in number: (412) 317-6671
- Passcode: 1018 5725
About
Forward-Looking Statements
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and our growth strategy. These statements are often, but not always, made using words or phrases such as “will” and “continue” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, the impact of the pending
Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
(Dollars in thousands, except share and per share data) | 2023 | 2022 | ||||||
Assets | ||||||||
Cash, cash equivalents, and federal funds sold | $ | 149,845 | $ | 105,598 | ||||
Investment and equity securities | 65,712 | 58,785 | ||||||
Loans | 2,215,886 | 1,916,953 | ||||||
Allowance for credit losses | (84,235 | ) | (63,845 | ) | ||||
Net loans receivable | 2,131,651 | 1,853,108 | ||||||
171,394 | 172,838 | |||||||
Property, equipment, and right-of-use lease asset, net | 14,076 | 13,168 | ||||||
Accrued interest receivable | 13,538 | 12,613 | ||||||
Loan collateral in process of foreclosure | 11,772 | 21,819 | ||||||
Other assets | 29,839 | 21,950 | ||||||
Total assets | $ | 2,587,827 | $ | 2,259,879 | ||||
Liabilities | ||||||||
Deposits | $ | 1,866,657 | $ | 1,607,110 | ||||
Long-term debt | 235,544 | 214,320 | ||||||
Deferred tax liabilities, net | 21,207 | 26,753 | ||||||
Short-term borrowings | 8,000 | 5,000 | ||||||
Operating lease liabilities | 7,019 | 8,408 | ||||||
Accrued interest payable | 6,822 | 4,790 | ||||||
Accounts payable and accrued expenses | 30,804 | 22,974 | ||||||
Total liabilities | 2,176,053 | 1,889,355 | ||||||
Total stockholders’ equity | 342,986 | 301,736 | ||||||
Non-controlling interest in consolidated subsidiaries | 68,788 | 68,788 | ||||||
Total equity | 411,774 | 370,524 | ||||||
Total liabilities and equity | $ | 2,587,827 | $ | 2,259,879 | ||||
Number of shares outstanding | 23,449,646 | 23,061,673 | ||||||
Book value per share | $ | 14.63 | $ | 13.08 | ||||
MEDALLION FINANCIAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
(Dollars in thousands, except share and per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Total interest income | $ | 67,585 | $ | 54,513 | $ | 251,040 | $ | 196,621 | ||||||||
Total interest expense | 18,567 | 10,926 | 62,946 | 36,185 | ||||||||||||
Net interest income | 49,018 | 43,587 | 188,094 | 160,436 | ||||||||||||
Provision for credit losses | 10,764 | 9,013 | 37,810 | 30,059 | ||||||||||||
Net interest income after provision for credit losses | 38,254 | 34,574 | 150,284 | 130,377 | ||||||||||||
Other income (loss) | ||||||||||||||||
Gain (loss) on equity investments | 2,989 | (206 | ) | 5,178 | 2,779 | |||||||||||
Gain on sale of loans and medallion | 413 | 387 | 4,992 | 5,448 | ||||||||||||
Write-down of loan collateral in process of foreclosure | (1,393 | ) | (49 | ) | (1,696 | ) | (657 | ) | ||||||||
Other income, net | 979 | 738 | 2,846 | 1,956 | ||||||||||||
Total other income, net | 2,988 | 870 | 11,320 | 9,526 | ||||||||||||
Other expenses | ||||||||||||||||
Salaries and employee benefits | 9,757 | 7,421 | 37,562 | 31,130 | ||||||||||||
Loan servicing fees | 2,459 | 2,140 | 9,543 | 8,371 | ||||||||||||
Collection costs | 1,271 | 1,379 | 6,000 | 5,314 | ||||||||||||
Professional fees | 1,663 | 948 | 5,886 | 13,054 | ||||||||||||
Regulatory fees | 710 | 797 | 3,194 | 2,418 | ||||||||||||
Rent expense | 617 | 614 | 2,472 | 2,378 | ||||||||||||
Amortization of intangible assets | 361 | 361 | 1,445 | 1,445 | ||||||||||||
Other expenses | 2,246 | 2,141 | 9,466 | 7,943 | ||||||||||||
Total other expenses | 19,084 | 15,801 | 75,568 | 72,053 | ||||||||||||
Income before income taxes | 22,158 | 19,643 | 86,036 | 67,850 | ||||||||||||
Income tax provision | 6,328 | 5,071 | 24,910 | 17,963 | ||||||||||||
Net income after taxes | 15,830 | 14,572 | 61,126 | 49,887 | ||||||||||||
Less: income attributable to the non-controlling interest | 1,512 | 1,512 | 6,047 | 6,047 | ||||||||||||
Total net income attributable to | $ | 14,318 | $ | 13,060 | $ | 55,079 | $ | 43,840 | ||||||||
Basic net income per share | $ | 0.63 | $ | 0.59 | $ | 2.45 | $ | 1.86 | ||||||||
Diluted net income per share | $ | 0.60 | $ | 0.57 | $ | 2.37 | $ | 1.83 | ||||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 22,608,243 | 22,286,272 | 22,510,435 | 23,583,049 | ||||||||||||
Diluted | 23,765,866 | 22,725,292 | 23,248,323 | 23,927,342 | ||||||||||||
Dividends declared per common share | $ | 0.10 | $ | 0.08 | $ | 0.34 | $ | 0.32 |
Source:
2024 GlobeNewswire, Inc., source