NEW YORK, April 30, 2024 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ:MFIN, "Medallion" or the "Company")), a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic partners, announced today its results for the quarter ended March 31, 2024. 2024 First Quarter Highlights Net income was $10.0 million, or $0.42 per share, compared to $15.4 million, or $0.67 per share, in the prior year quarter. $3.1 million of cash was collected on taxi medallion-related assets, with recoveries resulting in earnings of $0.04 per share compared to $13.2 million of cash collected, with recoveries resulting in earnings of $0.28 per share in the prior year quarter. Net interest income grew 10% to $47.9 million from $43.6 million in the prior year quarter. Net interest margin on net loans was 8.39%, compared to 8.71% in the prior year quarter, and on gross loans it was 8.10%, compared to 8.42% in the prior year quarter. Loan originations were $173.1 million, compared to $227.3 million in the prior year quarter. Loans grew 12% to $2.2 billion as of March 31, 2024, compared to $2.0 billion a year ago. The credit loss provision increased to $17.2 million from $4.0 million in the prior year quarter. The total provision included $0.9 million of net taxi medallion recoveries in the current quarter compared to $7.1 million of net taxi medallion recoveries in the prior year quarter. Repurchased 264,160 shares of its common stock at an average cost of $8.05 per share, for a total of $2.1 million. The Company declared and paid a quarterly cash dividend of $0.10 per share Executive Commentary – Andrew Murstein, President of Medallion "Once again, we continue to be pleased with our quarterly results, earning $10 million for the shareholders, or $0.42 per diluted share. The credit loss provision reflected the seasonality of our consumer lending business, starting relatively high early in the quarter and decreasing late in the quarter as delinquency declined from the December peak. Additionally, in the prior years we had significant recoveries related to taxi-medallion loans, which in the current quarter only totaled $0.9 million. As we look to the remainder of the year, we also expect consumer originations to increase as we hit our strong months.  In addition to our quarterly dividend, we returned an additional $2.1 million to shareholders in the form of stock repurchases made in the first quarter. We'll continue to assess our repurchase plans, being opportunistic at the right times, with the ultimate goal of providing long term value accretion to our shareholders." Business Segment Highlights Recreation Lending Segment Originations were $105.8 million during the quarter, compared to $101.7 million a year ago. Recreation loans grew 13% to $1.4 billion as of March 31, 2024, compared to $1.2 billion a year ago. Recreation loans were 61% of total loans as of March 31, 2024, consistent with a year ago. Net interest income grew 7% to $34.3 million for the quarter, from $32.0 million in the prior year quarter. The average interest rate was 14.80% at quarter-end, compared to 14.42% a year ago. Recreation loans 90 days or more past due were $6.4 million, or 0.48% of gross recreation loans, as of March 31, 2024, compared to $4.2 million, or 0.36%, a year ago. Allowance for credit loss rate was 4.40% as of March 31, 2024, compared to 4.12% a year ago. Home Improvement Lending Segment Originations were $51.6 million during the quarter, compared to $95.0 million a year ago. Home improvement loans grew 12% to $752.3 million as of March 31, 2024, compared to $669.6 million a year ago. Home improvement loans were 34% of total loans as of March 31, 2024, consistent with a year ago. Net interest income grew 14% to $11.8 million for the quarter, from $10.4 million in the prior year quarter. The average interest rate was 9.60% at quarter-end, compared to 8.83% a year ago. Home improvement loans 90 days or more past due were $1.4 million, or 0.18% of gross home improvement loans, as of March 31, 2024, compared to $0.4 million, or 0.07%, a year ago. Allowance for credit loss rate was 2.38% as of March 31, 2024, compared to 2.19% a year ago. Commercial Lending Segment Commercial loans were $106.6 million at March 31, 2024, compared to $95.3 million a year ago. The average interest rate on the portfolio was 13.00%, compared to 12.42% a year ago. Taxi Medallion Lending Segment The Company collected $3.1 million of cash on taxi medallion-related assets during the quarter. Total net taxi medallion assets declined to $10.8 million (comprised of $2.1 million of loans net of allowance for credit losses and $8.7 million of loan collateral in process of foreclosure), a 48% reduction from a year ago, and represented less than half a percent of the Company's total assets, as of March 31, 2024. Capital Allocation Quarterly Dividend The Board of Directors declared the quarterly dividend of $0.10 per share, payable on May 31, 2024 to shareholders of record at the close of business on May 15, 2024. Stock Repurchase Plan During the first quarter, the Company repurchased 264,160 shares of its common stock at an average cost of $8.05 per share, for a total of $2.1 million. As of March 31, 2024 the Company had $17.9 million remaining under its $40 million share repurchase program Conference Call Information The Company will host a conference call to discuss its first quarter financial results tomorrow, Wednesday, May 1, 2024 at 9:00 a.m. Eastern time. 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, May 1, 2024 Time: 9:00 a.m. Eastern time U.S. dial-in number: (833) 816-1412 International dial-in number: (412) 317-0504 Live webcast: Link to Webcast of 1Q24 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 Wednesday, May 8. U.S. dial-in number: (844) 512-2921 International dial-in number: (412) 317-6671 Access ID: 1018 8235 About Medallion Financial Corp. Medallion Financial Corp. (NASDAQ:MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com. 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 SEC litigation, expectations regarding our loan portfolio, including collections on our medallion loans, the potential for future asset growth, and market share opportunities. Medallion's actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, whether inflation or the risk of recession, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion's control. In addition to risks relating to the current economy, a description of certain risks to which Medallion is or may be subject, including risks related to the pending SEC litigation, please refer to the factors discussed under the heading "Risk Factors" in Medallion's 2023 Annual Report on Form 10-K. Company Contact: Investor Relations 212-328-2176 MEDALLION FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands, except share and per share data)   March 31, 2024     December 31, 2023     March 31, 2023   Assets                   Cash, cash equivalents, and federal funds sold   $ 169,125     $ 149,845     $ 132,382   Investment and equity securities     69,412       65,712       59,182   Loans     2,228,426       2,215,886       1,984,180   Allowance for credit losses     (83,827 )     (84,235 )     (70,280 ) Net loans receivable     2,144,599       2,131,651       1,913,900   Goodwill and intangible assets, net     171,033