Medallion Bank Reports 2024 Fourth Quarter and Full-Year Results and Declares Series F Preferred Stock Dividend
Rhea-AI Summary
Medallion Bank (MBNKP) reported its Q4 and full-year 2024 results. Q4 net income was $15.6 million, down from $21.9 million in Q4 2023, while net interest income increased to $53.1 million from $48.9 million. For full-year 2024, net income decreased to $60.6 million from $79.9 million in 2023, though net interest income grew to $204.7 million from $188.9 million.
The Bank's total loan portfolio grew 13% to $2.4 billion, with recreation loans up 15% to $1.543 billion and home improvement loans up 9% to $827.2 million. The Bank signed a letter of intent to sell up to $121 million of recreation loans at a premium to par value. The Board declared a quarterly cash dividend of $0.50 per share on Series F Preferred Stock, payable on April 1, 2025.
Positive
- Net interest income increased 8.4% YoY to $204.7 million for 2024
- Total loan portfolio grew 13% to $2.4 billion
- Recreation loan originations increased to $526.6 million from $447.0 million in 2023
- Strong capital position with Tier 1 leverage ratio of 15.68%
- Strategic partnership business volumes tripled to $124 million in Q4
Negative
- Net income declined 24.2% YoY to $60.6 million in 2024
- Net interest margin decreased to 8.48% from 8.84% in 2023
- Total net charge-offs increased to 2.82% from 1.52% in 2023
- Return on equity decreased to 16.62% from 24.57% in 2023
- Provision for credit losses increased to $75.8 million from $36.5 million in 2023
News Market Reaction – MFIN
On the day this news was published, MFIN declined 5.29%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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 to8.62% 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 to1.04% 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 to8.84% 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 to1.52% in 2023. - Return on assets and return on equity were
2.52% and16.62% , respectively, compared to3.74% and24.57% 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 was15.68% 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
Recreation Lending Segment
- The Bank’s recreation loan portfolio grew
15% to$1.54 3 billion as of December 31, 2024, compared to$1.33 6 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 to64% at December 31, 2023. - Annualized net charge-offs were
4.35% of average recreation loans outstanding in the fourth quarter 2024, compared to4.23% in the prior year quarter. For the year, total net charge-offs were3.72% of average recreation loans outstanding, compared to3.04% 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 to4.31% 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 to36% at December 31, 2023. - Annualized net charge-offs were
1.75% of average home improvement loans outstanding in the fourth quarter 2024, compared to1.67% in the prior year quarter. For the year, total net charge-offs were1.78% of average home improvement loans outstanding, compared to1.33% 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 to2.76% 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
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
InvestorRelations@medallion.com
| 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 | 26,303 | |||||
| Series F Preferred stock | 42,485 | 42,485 | |||||
| Common stock | 1,000 | 1,000 | |||||
| Additional paid in capital | 77,500 | 77,500 | |||||
| Accumulated other comprehensive loss, net of tax | (4,480 | ) | (4,529 | ) | |||
| Retained earnings | 239,569 | 209,034 | |||||
| Total shareholders’ equity | 382,377 | 351,793 | |||||
| Total liabilities and shareholders’ equity | $ | 2,549,099 | $ | 2,262,056 | |||
FAQ
What was Medallion Bank's net income for Q4 2024?
How much did Medallion Bank's loan portfolio grow in 2024?
What is the amount of recreation loans Medallion Bank plans to sell?
What is the Q1 2025 dividend amount for Medallion Bank's Series F Preferred Stock?
How much were Medallion Bank's recreation loan originations in 2024?
