Q2 2024 Medallion Financial Corp Earnings Call Transcript
Key Points
- Medallion Financial Corp (MFIN) reported a solid quarter with $7.1 million in net income and $0.3 earnings per share.
- The company successfully originated over $200 million in loans in its Rec Lending segment, with an average interest rate of 14.8%.
- Home improvement lending grew by 6% year-over-year, with a strong focus on super-prime borrowers.
- The commercial lending segment saw a 19% growth in its loan portfolio, reaching $110 million with an average interest rate of 13.05%.
- Medallion Financial Corp (MFIN) was re-included in the Russell 3,000 index, highlighting its growth and performance.
- Net interest margin on gross loans decreased by 36 basis points from the previous year, indicating some pressure on profitability.
- Operating expenses increased to $20 million, partly due to elevated legal and professional fees from defending against an activist proxy campaign.
- The provision for credit loss rose to $18.6 million, reflecting increased allowances tied to consumer loan growth.
- Consumer loans more than 90 days past due increased to $7.2 million, up from $6.1 million a year ago.
- The company faces a 'growth penalty' due to the immediate reduction in current earnings from booking new loans.
Good day and welcome to the Medallion Financial second-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 second-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
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