0001000209false00010002092024-01-302024-01-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 30, 2024
MEDALLION FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
001-37747
(Commission File Number)
04-3291176
(IRS Employer Identification No.)
437 MADISON AVENUE, 38th Floor
NEW YORK, New York 10022
(Address of Principal Executive Offices) (Zip Code)
(212) 328-2100
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
|
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
|
|
|
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Common Stock, par value $0.01 per share |
MFIN |
NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 7.01 Regulation FD Disclosure.
Medallion Bank, a wholly owned subsidiary of Medallion Financial Corp. (the “Company”), issued a press release to the news media announcing, among other things, the Company’s results for the quarter and year ended December 31, 2023.
A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information in the press release is being furnished, not filed, pursuant to Item 7.01. Accordingly, the information in the press release will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
The following exhibits are being filed with this Current Report on Form 8-K:
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: January 30, 2024
|
|
|
MEDALLION FINANCIAL CORP. |
|
|
By: |
|
/s/ Anthony N. Cutrone |
|
|
Name: Anthony N. Cutrone |
|
|
Title: Chief Financial Officer |
3
Exhibit 99.1
FOR IMMEDIATE RELEASE:
MEDALLION BANK REPORTS 2023 FOURTH QUARTER AND FULL-YEAR RESULTS AND DECLARES SERIES F PREFERRED STOCK DIVIDEND
SALT LAKE CITY, UT – January 30, 2024 – Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners, announced today its results for the quarter and full-year ended December 31, 2023. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).
2023 Fourth Quarter Highlights
•Net income of $21.9 million, compared to $19.7 million in the prior year quarter.
•Net interest income of $48.9 million with a net interest margin of 8.62%, compared to $44.4 million and 9.19% in the prior year quarter.
•Total provision for credit losses was $9.7 million, compared to $8.4 million in the prior year quarter. Net medallion loan recoveries were $12.0 million, compared to $1.2 million during the prior year quarter.
•Annualized net charge-offs were 1.04% of average loans outstanding, compared to 1.68% in the prior year quarter. Net medallion loan recoveries reduced annualized net charge-offs by 226 basis points, compared to 27 basis points in the prior year quarter.
2023 Full-Year Highlights
Net income of $79.9 million, compared to net income of $74.6 million in 2022.
Net interest income of $188.9 million with a net interest margin of 8.84%, compared to $164.6 million and 9.41% in 2022.
•ROA and ROE were 3.74% and 24.57%, respectively, compared to 4.24% and 26.45% for 2022.
•Total provision for credit losses was $36.5 million, compared to $24.7 million in 2022. Net medallion loan recoveries reduced the total provision for credit losses by $18.1 million, compared to $5.1 million in 2022.
•Total net charge-offs were 1.52% of average loans outstanding, compared to 1.01% in 2022. Net medallion loan recoveries reduced total net charge-offs by 91 basis points, compared to 31 basis points in 2022.
•The total loan portfolio grew 15% to $2.1 billion.
•Total assets were $2.3 billion, total capital was $351.8 million, and the Tier 1 leverage ratio was 16.24% at December 31, 2023.
Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “We had an excellent end to another great year, producing both record quarterly and annual earnings. Contributing to our fourth quarter results were $12.0 million of medallion loan recoveries that reduced our provision for credit losses. Those recoveries came as recreation and home improvement loan losses trended higher, as anticipated, to a level more comparable with pre-pandemic historic norms. We maintained tighter credit standards and slowed our asset growth rates, which finished 2023 at 13% for recreation loans and 21% for home improvement loans. Under the Current Expected Credit Loss (CECL) model, which we adopted in 2023, our allowance for credit losses is calculated based on lifetime expected losses and our reserve percentage increased by 39 basis points for the year. As we move through 2024, our team of talented employees remains focused on prudent growth, credit risk and balance sheet management. We look forward to having another strong year.”
Recreation Lending Segment
•The Bank’s recreation loan portfolio grew 13% to $1.336 billion as of December 31, 2023, compared to $1.184 billion at December 31, 2022.
•Net interest income was $36.2 million, compared to $33.4 million in the prior year quarter. For the year, net interest income was $140.3 million, compared to $124.5 million in 2022.
•Recreation loans were 63.6% of loans receivable as of December 31, 2023, compared to 64.9% at December 31, 2022.
•Annualized net charge-offs were 4.2% of average recreation loans outstanding, compared to 2.4% in the prior year quarter.
•The provision for credit losses was $14.8 million, compared to $7.3 million in the prior year quarter. For the year, the provision for credit losses was $44.6 million, compared to $22.8 million in 2022.
Home Improvement Lending Segment
•The Bank’s home improvement loan portfolio grew 21% to $760.6 million as of December 31, 2023, compared to $626.4 million at December 31, 2022.
•Net interest income was $12.2 million, compared to $10.5 million in the prior year quarter. For the year, net interest income was $46.6 million, compared to $38.9 million in 2022.
•Home improvement loans were 36.2% of loans receivable as of December 31, 2023, compared to 34.4% at December 31, 2022.
•Annualized net charge-offs were 1.7% of average home improvement loans outstanding, compared to 1.1% in the prior year quarter.
•The provision for credit losses was $6.9 million, compared to $2.7 million in the prior year quarter. For the year, the provision for credit losses was $17.6 million, compared to $7.6 million in 2022.
Series F Preferred Stock Dividend
On January 25, 2024, 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, 2024, to holders of record at the close of business on March 15, 2024.
* * *
2
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, net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as “remain,” “anticipate” or the negative version of this word or other comparable words or phrases of a future or forward-looking nature, such as “look forward.” 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, 2022, 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
3
|
|
|
|
|
|
|
|
MEDALLION BANK STATEMENTS OF OPERATIONS (UNAUDITED) |
|
For the Three Months Ended December 31, |
|
For the Years Ended December 31, |
(In thousands) |
2023 |
|
2022 |
|
2023 |
|
2022 |
Total interest income |
$ 63,253 |
|
$ 51,774 |
|
$ 236,667 |
|
$ 187,272 |
Total interest expense |
14,401 |
|
7,361 |
|
47,785 |
|
22,667 |
Net interest income |
48,852 |
|
44,413 |
|
188,882 |
|
164,605 |
|
|
|
|
|
|
|
|
Provision for credit losses |
9,717 |
|
8,409 |
|
36,457 |
|
24,709 |
Net interest income after provision for loan losses |
39,135 |
|
36,004 |
|
152,425 |
|
139,896 |
|
|
|
|
|
|
|
|
Other income (loss) |
|
|
|
|
|
|
|
Write-downs of loan collateral in process of foreclosure and other assets |
(70) |
|
(49) |
|
(373) |
|
(582) |
Other non-interest income |
909 |
|
280 |
|
2,475 |
|
1,237 |
Total other income (loss) |
839 |
|
231 |
|
2,102 |
|
655 |
|
|
|
|
|
|
|
|
Non-interest expense |
|
|
|
|
|
|
|
Salaries and benefits |
4,997 |
|
4,430 |
|
19,001 |
|
15,086 |
Loan servicing |
2,903 |
|
2,571 |
|
11,626 |
|
10,843 |
Collection costs |
1,492 |
|
1,445 |
|
5,965 |
|
5,385 |
Regulatory fees |
692 |
|
797 |
|
3,176 |
|
2,418 |
Professional fees |
631 |
|
446 |
|
2,243 |
|
1,754 |
Occupancy and equipment |
206 |
|
209 |
|
830 |
|
793 |
Other |
1,099 |
|
1,154 |
|
4,555 |
|
4,248 |
Total non-interest expense |
12,020 |
|
11,052 |
|
47,396 |
|
40,527 |
|
|
|
|
|
|
|
|
Income before income taxes |
27,954 |
|
25,183 |
|
107,131 |
|
100,024 |
Provision for income taxes |
6,011 |
|
5,460 |
|
27,279 |
|
25,386 |
|
|
|
|
|
|
|
|
Net income |
$ 21,943 |
|
$ 19,723 |
|
$ 79,852 |
|
$ 74,638 |
4
MEDALLION BANK
BALANCE SHEETS
(UNAUDITED)
|
|
|
|
(In thousands) |
December 31, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
Cash and federal funds sold |
$ 110,043 |
|
$ 74,078 |
Investment securities, available-for-sale |
54,282 |
|
48,492 |
Loans, inclusive of net deferred loan acquisition costs |
2,100,338 |
|
1,822,737 |
Allowance for losses |
(79,283) |
|
(61,630) |
Loans, net |
2,021,055 |
|
1,761,107 |
|
|
|
|
Loan collateral in process of foreclosure |
4,165 |
|
10,381 |
Fixed assets and right-of-use lease assets, net |
8,140 |
|
6,600 |
Deferred tax assets |
12,761 |
|
9,241 |
Accrued interest receivable and other assets |
51,610 |
|
40,928 |
Total assets |
$ 2,262,056 |
|
$ 1,950,827 |
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
Liabilities |
|
|
|
Deposits and other funds borrowed |
$ 1,866,657 |
|
$ 1,607,110 |
Accrued interest payable |
4,029 |
|
2,422 |
Income tax payable |
21,219 |
|
23,165 |
Other liabilities |
17,509 |
|
10,614 |
Due to affiliates |
849 |
|
861 |
Total liabilities |
1,910,263 |
|
1,644,172 |
|
|
|
|
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 |
(4,529) |
|
(4,183) |
Retained earnings |
209,034 |
|
163,550 |
Total shareholders’ equity |
351,793 |
|
306,655 |
Total liabilities and shareholders’ equity |
$ 2,262,056 |
|
$ 1,950,827 |
5
v3.24.0.1
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 2 such as Street or Suite number
+ References
+ Details
Name: |
dei_EntityAddressAddressLine2 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the state or province.
+ References
+ Details
Name: |
dei_EntityAddressStateOrProvince |
Namespace Prefix: |
dei_ |
Data Type: |
dei:stateOrProvinceItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Section 14a -Number 240 -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
Medallion Financial (NASDAQ:MFIN)
Historical Stock Chart
From Apr 2024 to May 2024
Medallion Financial (NASDAQ:MFIN)
Historical Stock Chart
From May 2023 to May 2024