Medallion Financial Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Medallion Financial Corp. has filed its 2023 10-K report detailing financial performance and business operations.</b>

AI Summary

MEDALLION FINANCIAL CORP (MBNKO) filed a Annual Report (10-K) with the SEC on March 7, 2024. Medallion Financial Corp. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the company's financial performance and business operations. Key financial data and disclosures are included in the report. The report details various segments including Commercial Lending and Taxi Medallion financing. Information on equity securities, debt, and other financial instruments is provided.

Why It Matters

For investors and stakeholders tracking MEDALLION FINANCIAL CORP, this filing contains several important signals. Investors can assess the company's financial health and strategic direction for the past year. The 10-K provides crucial information for evaluating investment opportunities and risks associated with Medallion Financial Corp.

Risk Assessment

Risk Level: medium — MEDALLION FINANCIAL CORP shows moderate risk based on this filing. The company operates in the finance services sector, which is subject to regulatory changes and market volatility, as indicated by its SIC code and the nature of its business segments.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Medallion Financial Corp.'s performance and outlook.

Key Numbers

• 20231231 — Fiscal Year End (Fiscal year end date)
• 20240307 — Filing Date (Date the filing was submitted)
• 129 — Public Document Count (Number of documents included in the filing)
• 0000950170-24-027942 — Accession Number (Unique identifier for the filing)

Key Players & Entities

• MEDALLION FINANCIAL CORP (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240307 (date) — Filed as of date
• 437 MADISON AVE 38 TH FLOOR (address) — Business address street 1
• NEW YORK (location) — Business address city
• DE (location) — State of incorporation
• 6199 (industry_code) — Standard Industrial Classification
• 001-37747 (filing_id) — SEC file number

FAQ

Risk Factors

• Regulatory Environment [medium — regulatory]: The company is subject to extensive regulation by federal and state agencies, which can impact its operations and profitability.
• Market Conditions [medium — market]: Changes in economic conditions, interest rates, and the competitive landscape can affect the company's lending activities and investment portfolio.
• Credit Risk [high — financial]: The company's primary risk is credit risk, stemming from its loan portfolio, particularly in segments like taxi medallions and commercial lending.
• Operational Risks [medium — operational]: Operational risks include potential disruptions in business processes, technology failures, and cybersecurity threats.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-07: Filing Date — Date Medallion Financial Corp. submitted its 10-K filing.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the official annual financial and business overview of Medallion Financial Corp.)

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share MFIN NASDAQ Global Select
• $0 — of registrant's common stock, par value $0.01, as of March 6, 2024 was 23,483,564
• $2.6 billion — nding businesses. Our total assets were $2.6 billion as of December 31, 2023 and $2.3 billio
• $2.3 billion — 2.6 billion as of December 31, 2023 and $2.3 billion as of December 31, 2022. We conduct o
• $20,000 — h an average loan size of approximately $20,000 as of December 31, 2023. The loans are
• $1.0 billion — business, we have originated more than $1.0 billion in commercial loans. Commercial loans o
• $114.8 million — n commercial loans. Commercial loans of $114.8 million comprised 5% of our loans receivable as
• $2.5 million — sses and generally range in amount from $2.5 million to $6.0 million at origination. As a co
• $6.0 million — ly range in amount from $2.5 million to $6.0 million at origination. As a component of most
• $3.7 million — llion Lending Taxi medallion loans of $3.7 million comprised less than 1% of our loans rec
• $10.0 million — ollateral in process of foreclosure was $10.0 million as of December 31, 2023, with 100% loca
• $79,500 — 2023 supporting our estimated value of $79,500, net of liquidation costs, as of Decemb
• $118.3 million — essing loan applications. We originated $118.3 million and $49.5 million of strategic partners
• $49.5 million — tions. We originated $118.3 million and $49.5 million of strategic partnership loans for the
• $0.6 million — ded December 31, 2023 and 2022. We held $0.6 million of strategic partnership loans as of bo

Filing Documents

• mfin-20231231.htm (10-K) — 6919KB
• mfin-ex10_35.htm (EX-10.35) — 52KB
• mfin-ex21_1.htm (EX-21.1) — 7KB
• mfin-ex23_1.htm (EX-23.1) — 4KB
• mfin-ex31_1.htm (EX-31.1) — 14KB
• mfin-ex31_2.htm (EX-31.2) — 14KB
• mfin-ex32_1.htm (EX-32.1) — 7KB
• mfin-ex32_2.htm (EX-32.2) — 7KB
• mfin-ex97_1.htm (EX-97.1) — 45KB
• img89325101_0.jpg (GRAPHIC) — 37KB
• img175641427_0.jpg (GRAPHIC) — 39KB
• 0000950170-24-027942.txt (&nbsp;) — 27919KB
• mfin-20231231.xsd (EX-101.SCH) — 2801KB
• mfin-20231231_htm.xml (XML) — 6821KB

RISK FACTORS

RISK FACTORS 19 ITEM 1B. UNRESOLVED STAFF COMMENTS 34 ITEM 1C. CYBERSECURITY 34 ITEM 2.

PROPERTIES

PROPERTIES 35 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 35 ITEM 4. MINE SAFETY DISCLOSURES 35 PART II 36 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 36 ITEM 6. [RESERVED] 37 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 37 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 58 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 58 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 58 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 58 ITEM 9B. OTHER INFORMATION 61 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 61 PART III 61 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 61 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 61 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 61 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 61 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 61 PART IV 62 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 62 ITEM 16. FORM 10-K SUMMARY 65

SIGNATURES

SIGNATURES 66 2 The following discussion should be read in conjunction with our financial statements and the notes to those statements and other financial information appearing elsewhere in this report. This report contains forward-looking statements relating to future events and future performance applicable to us within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act, including, without limitation, statements regarding our expectations, beliefs, intentions, or future strategies that are signified by the words expects, anticipates, intends, believes, or similar language. In connection with certain forward-looking statements contained in this Form 10-K and those that may be made in the future by or on behalf of the Company, the Company notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. The forward-looking statements contained in this Form 10-K were prepared by management and are qualified by, and subject to, significant business, economic, competitive, regulatory, and other uncertainties and contingencies, all of which are difficult or impossible to predict, and many of which are beyond control of the Company. In particular, any forward-looking statements are subject to the risks and great uncertainties associated with the pending litigation with the Securities and Exchange Commission as well as the current inflationary environment and the risk of recession. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statements. The statements have not been audited by, examined by, compiled by, or subjected to agreed-upon procedures by independent accountants, and no third-party has independently verified or reviewed such statements. Readers of this Form 10-K s

OUR BUSINESS

ITEM 1. OUR BUSINESS We, Medallion Financial Corp., or the Company, are a specialty finance company organized as a Delaware corporation. Our strategic focus is growing our consumer finance and commercial lending businesses. Our total assets were $2.6 billion as of December 31, 2023 and $2.3 billion as of December 31, 2022. We conduct our business through various wholly-owned subsidiaries, including: Medallion Bank, or the Bank, a Federal Deposit Insurance Corporation, or FDIC, insured industrial bank that originates consumer loans, raises deposits and conducts other banking activities; Medallion Capital, Inc., or Medallion Capital, a Small Business Investment Company, or SBIC, which conducts a mezzanine financing business; Medallion Funding LLC, or Medallion Funding, an SBIC, historically our primary taxi medallion lending company; and Freshstart Venture Capital Corp., or Freshstart, which historically originated and serviced taxi medallion and commercial loans and was an SBIC through 2023. Our Market We provide loans to individuals and small to mid-size businesses, through our subsidiaries, under four operating segments: loans that finance consumer purchases of recreational vehicles, boats, and other consumer recreational equipment; loans that finance consumer home improvements; loans that finance commercial businesses; and historically, loans that finance taxi medallions. The following table shows our loans receivable as of December 31, 2023. (Dollars in thousands) Loans Allowance for Credit Losses Net Loans Receivable Recreation $ 1,336,226 $ 57,532 $ 1,278,694 Home improvement 760,617 21,019 739,598 Commercial 114,827 4,148 110,679 Taxi medallion 3,663 1,536 2,127 Strategic partnership (1) 553 — 553 Total $ 2,215,886 $ 84,235 $ 2,131,651 (1) Strategic partnership loans are held in our non-operating segment. 4 Recreation Lending Recreation lending is a growth-ori

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View this 10-K filing on SEC EDGAR