2023 Second Quarter Highlights
- Net income was
$14.2 million , or$0.62 per share, compared to$13.3 million , or$0.54 per share, in the prior year quarter. $10.6 million of cash collected on taxi medallion-related assets, with recoveries resulting in earnings of$0.22 per share.- Net interest income grew 20% to
$46.7 million from$38.9 million in the prior year quarter. - Net interest margin on net loans was 8.77%, compared to 9.07% in the prior year quarter, and on gross loans it was 8.48%, compared to 8.78% in the prior year quarter.
- Loan originations were
$346 million , compared to$305 million in the prior year quarter. - The credit loss provision increased to
$8.5 million from$7.8 million in the prior year quarter. - Total assets grew to an all-time high of
$2.5 billion atJune 30, 2023 , a 19% increase overJune 30, 2022 . - The Company declared and paid a quarterly cash dividend of
$0.08 per share.
Executive Commentary –
“We are very pleased with our second quarter results. Net interest income grew 20% over the prior year quarter and importantly grew 7% from just one quarter ago. As we have been saying since interest rates started to increase, we believe we will be able to manage through the current interest rate environment by growing our loan portfolio and passing along a portion of those increases. Our consumer teams originated over
Business Segment Highlights
Recreation Lending Segment
- Originations were
$190.0 million during the quarter, compared to$170.2 million a year ago. - Recreation loans grew 21% to
$1.3 billion as ofJune 30, 2023 , compared to$1.1 billion a year ago. - Recreation loans were 62% of total loans as of
June 30, 2023 , compared to 63% a year ago. - Net interest income grew 14% to
$33.5 million for the quarter, from$29.4 million in the prior year quarter. - The average interest rate was 14.62% at quarter-end, compared to 14.23% a year ago.
- Recreation loans 90 days or more past due were
$5.0 million , or 0.39% of gross recreation loans, as ofJune 30, 2023 , compared to$3.8 million , or 0.36%, a year ago.
Home Improvement Lending Segment
- Originations were
$117.0 million during the quarter, compared to$105.2 million a year ago. - Home improvement loans grew 38% to
$728.5 million as ofJune 30, 2023 , compared to$526.3 million a year ago. - Home improvement loans were 34% of total loans as of
June 30, 2023 , compared to 30% a year ago. - Net interest income grew 24% to
$11.1 million for the quarter, from$9.0 million in the prior year quarter. - The average interest rate was 9.21% at quarter-end, compared to 8.50% a year ago.
- Home improvement loans 90 days or more past due were
$1.1 million , or 0.16% of gross home improvement loans, as ofJune 30, 2023 , compared to$0.4 million , or 0.07%, a year ago.
Commercial Lending Segment
- Commercial loans were
$92.6 million atJune 30, 2023 , compared to$96.9 million a year ago. - The average interest rate on the portfolio was 12.64%, compared to 12.33% a year ago.
Medallion Lending Segment
- The Company collected
$10.6 million of cash on taxi medallion-related assets during the quarter. - Total net taxi medallion assets declined to
$17.7 million (comprised of$1.6 million of loans net of allowance for credit losses and$16.1 million of loan collateral in process of foreclosure), a 43% reduction from a year ago, and represented less than 1% of the Company’s total assets, as ofJune 30, 2023 .
Capital Allocation
Quarterly Dividend
- The Board of Directors declared a quarterly cash dividend of
$0.08 per share payable onAugust 31, 2023 to shareholders of record at the close of business onAugust 15, 2023 .
Conference Call Information
The Company will host a conference call to discuss its second quarter financial results tomorrow,
As part of its earnings release, the Company has updated its quarterly supplement presentation, which is now available at www.medallion.com.
How to Participate
- Date:
Tuesday, July 25, 2023 - 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 2Q23 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 through
U.S. dial-in number: (844) 512-2921- International dial-in number: (412) 317-6671
- Passcode: 1374 0079
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 | 2022 | |||||||||
Assets | ||||||||||||
Cash, cash equivalents, and federal funds sold | $ | 124,554 | $ | 105,598 | $ | 126,330 | ||||||
Equity investments and investment securities | 65,096 | 58,785 | 61,300 | |||||||||
Loans | 2,156,998 | 1,916,953 | 1,734,621 | |||||||||
Allowance for credit losses | (74,971 | ) | (63,845 | ) | (59,152 | ) | ||||||
Net loans receivable | 2,082,027 | 1,853,108 | 1,675,469 | |||||||||
172,118 | 172,838 | 173,562 | ||||||||||
Loan collateral in process of foreclosure | 16,803 | 21,819 | 26,974 | |||||||||
Other assets | 58,539 | 47,731 | 48,496 | |||||||||
Total assets | $ | 2,519,137 | $ | 2,259,879 | $ | 2,112,131 | ||||||
Liabilities | ||||||||||||
Deposits | $ | 1,813,785 | $ | 1,607,110 | $ | 1,469,241 | ||||||
Long-term debt | 178,128 | 214,320 | 219,377 | |||||||||
Short-term borrowings | 67,880 | 5,000 | — | |||||||||
Deferred tax liabilities and other tax payables | 26,840 | 26,753 | 24,048 | |||||||||
Operating lease liabilities | 7,629 | 8,408 | 9,078 | |||||||||
Accounts payable and other liabilities | 37,111 | 27,764 | 27,546 | |||||||||
Total liabilities | 2,131,373 | 1,889,355 | 1,749,290 | |||||||||
Commitments and contingencies | ||||||||||||
Total stockholders’ equity | 318,976 | 301,736 | 294,053 | |||||||||
Non-controlling interest in consolidated subsidiaries | 68,788 | 68,788 | 68,788 | |||||||||
Total equity | 387,764 | 370,524 | 362,841 | |||||||||
Total liabilities and equity | $ | 2,519,137 | $ | 2,259,879 | $ | 2,112,131 | ||||||
Number of shares outstanding | 23,345,017 | 23,061,673 | 24,239,320 | |||||||||
Book value per share | $ | 13.66 | $ | 13.08 | $ | 12.13 |
MEDALLION FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(Dollars in thousands, except share and per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Total interest income | $ | 61,726 | $ | 47,111 | $ | 117,568 | $ | 90,414 | |||||||||||||||
Total interest expense | 15,035 | 8,230 | 27,275 | 15,605 | |||||||||||||||||||
Net interest income | 46,691 | 38,881 | 90,293 | 74,809 | |||||||||||||||||||
Provision for loan losses | 8,476 | 7,759 | 12,514 | 10,999 | |||||||||||||||||||
Net interest income after provision for loan losses | 38,215 | 31,122 | 77,779 | 63,810 | |||||||||||||||||||
Other income (loss) | |||||||||||||||||||||||
Gain on sale of loans and medallions | 1,306 | 2,667 | 3,161 | 4,543 | |||||||||||||||||||
Gain on equity investments | 99 | 4,241 | 9 | 4,108 | |||||||||||||||||||
Write-down of loan collateral in process of foreclosure | (21 | ) | (128 | ) | (273 | ) | (514 | ) | |||||||||||||||
Other income | 558 | 578 | 1,128 | 750 | |||||||||||||||||||
Total other income, net | 1,942 | 7,358 | 4,025 | 8,887 | |||||||||||||||||||
Other expenses | |||||||||||||||||||||||
Salaries and employee benefits | 9,339 | 7,730 | 18,175 | 15,298 | |||||||||||||||||||
Loan servicing fees | 2,361 | 2,119 | 4,583 | 4,072 | |||||||||||||||||||
Collection costs | 1,608 | 999 | 3,146 | 2,342 | |||||||||||||||||||
Professional fees | 1,368 | 4,392 | 3,075 | 8,384 | |||||||||||||||||||
Other expenses | 4,327 | 3,573 | 8,416 | 6,749 | |||||||||||||||||||
Total other expenses | 19,003 | 18,813 | 37,395 | 36,845 | |||||||||||||||||||
Income before income taxes | 21,154 | 19,667 | 44,409 | 35,852 | |||||||||||||||||||
Income tax provision | 5,472 | 4,856 | 11,854 | 9,687 | |||||||||||||||||||
Net income after taxes | 15,682 | 14,811 | 32,555 | 26,165 | |||||||||||||||||||
Less: income attributable to the non-controlling interest | 1,512 | 1,511 | 3,024 | 3,024 | |||||||||||||||||||
Total net income attributable to | $ | 14,170 | $ | 13,300 | $ | 29,531 | $ | 23,141 | |||||||||||||||
Net income per common share: | |||||||||||||||||||||||
Basic | $ | 0.63 | $ | 0.55 | $ | 1.32 | $ | 0.95 | |||||||||||||||
Diluted | $ | 0.62 | $ | 0.54 | $ | 1.29 | $ | 0.93 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 22,488,463 | 24,153,015 | 22,416,089 | 24,459,870 | |||||||||||||||||||
Diluted | 22,853,927 | 24,421,867 | 22,915,094 | 24,751,012 | |||||||||||||||||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 |
Source:
2023 GlobeNewswire, Inc., source