Q3 2024 Medallion Financial Corp Earnings Call Transcript
Key Points
- Medallion Financial Corp (MFIN) reported a net income of $8.6 million and $0.37 earnings per share for the third quarter.
- The company experienced a strong performance in its recreation lending segment with $139 million in new loan originations, marking a 50% increase from the previous year.
- Medallion Financial Corp (MFIN) increased its quarterly dividend by 10% to $0.11, reflecting confidence in its future and commitment to shareholder value.
- The company's net interest income grew by 8% year-over-year to $52.7 million, driven by a larger loan portfolio and increased yield on new originations.
- The home improvement lending segment grew by 8% over the prior year, with an average interest rate increase of 38 basis points from a year ago.
- The provision for credit loss increased to $20.2 million, up from $18.6 million in the second quarter and $14.5 million in the prior year quarter.
- Net charge-offs during the quarter were $13.4 million or 2.18% of the average portfolio, compared to $10.4 million or 1.88% in the prior year.
- Consumer loans more than 90 days past due increased to $9 million or 0.39% of total consumer loans, compared to $6.9 million or 0.34% a year ago.
- The net interest margin on gross loans decreased by 1 basis point from the prior quarter and 24 basis points from a year ago.
- Operating expenses were $19 million during the quarter, slightly down from the prior quarter but still a significant cost factor.
Good day, and welcome to the Medallion Financial Corp. Third Quarter Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Ken Cooper, Investor Relations. Please go ahead.
Thank you, and good morning, everyone. Welcome to Medallion Financial Corp.'s Third Quarter Earnings Call. Joining me today are Andrew Murstein, President and Chief Operating Officer; and Anthony Cutrone, Executive Vice President and Chief Financial Officer.
Certain statements made during the call today constitute forward-looking statements made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in our earnings press release issued yesterday and in our
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