Medallion Financial Corp. Reports 2023 Second Quarter Results.

NEW YORK: 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 June 30, 2023.

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 at June 30, 2023, a 19% increase over June 30, 2022.

The Company declared and paid a quarterly cash dividend of $0.08 per share.

Executive Commentary - Andrew Murstein, President of Medallion

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 $300 million of loans in the quarter, which is a record second quarter for us, and led to our loan portfolio exceeding $2 billion for the first time in our history. We had another strong quarter of cash collections related to our medallion assets, with over $10 million collected. This helped us deliver one of our strongest quarters ever, with earnings per share of $0.62.

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 of June 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...