Medallion Financial Corp. Q3 2024 Filing Released

TL;DR

MFIN Q3 filing out: financials and operational details for period ending 9/30/24.

AI Summary

Medallion Financial Corp. reported its third-quarter results for the period ending September 30, 2024. The company's filing includes financial data and disclosures related to its operations, such as property, equipment, and lease liabilities. Specific details on financing receivables and market approach valuation techniques are also provided.

Why It Matters

This filing provides investors with the latest financial performance and operational details of Medallion Financial Corp., crucial for understanding its current financial health and future prospects.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information, including potential risks related to financing receivables and market valuations, which could impact the company's performance.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2023-12-31 — Prior Year End Date (Provides a comparative point for financial performance analysis.)
• 2023-09-30 — Prior Year Quarter End Date (Used for year-over-year quarterly comparison.)

Key Players & Entities

• Medallion Financial Corp. (company) — Filer of the 10-Q report
• 2024-09-30 (date) — End of the reporting period for the 10-Q
• 437 Madison Ave 38th Floor, New York, NY 10022 (address) — Business and mailing address of Medallion Financial Corp.
• 2123282153 (phone_number) — Business phone number for Medallion Financial Corp.

FAQ

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 November 6, 2024, was 23,067,
• $2.9 billion — nding businesses. Our total assets were $2.9 billion and $2.6 billion as of September 30, 20
• $2.6 billion — Our total assets were $2.9 billion and $2.6 billion as of September 30, 2024 and December 3

Filing Documents

• mfin-20240930.htm (10-Q) — 7801KB
• 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
• 0000950170-24-122240.txt ( ) — 28946KB
• mfin-20240930.xsd (EX-101.SCH) — 2284KB
• mfin-20240930_htm.xml (XML) — 7690KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 3

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 3

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

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 36

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 58

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 58

—OTHER INFORMATION

PART II—OTHER INFORMATION 59

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 59

RISK FACTORS

ITEM 1A. RISK FACTORS 59

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 59

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 59

EXHIBITS

ITEM 6. EXHIBITS 60

SIGNATURES

SIGNATURES 61 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS 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-Q 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-Q 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 U.S. and global economies, including 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-

– FINANCI AL INFORMATION

PART I – FINANCI AL INFORMATION

FINANCI AL STATEMENTS

ITEM 1. FINANCI AL STATEMENTS BASIS OF PREPARATION 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 $2.9 billion and $2.6 billion as of September 30, 2024 and December 31, 2023. 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 operates 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 consolidated balance sheets as of September 30, 2024, and the related consolidated statements of operations, consolidated statements of other comprehensive income, consolidated statements of stockholders' equity and cash flows for the three and nine months then ended included in Item 1 have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying consolidated financial statements include all adjustments, which are of a normal and recurring nature, necessary to present fairly our consolidated financial position and results of operations. The results of operations for the three and nine mont

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2024 (1) ORGANIZATION OF MEDALLION FINANCIAL CORP. AND ITS SUBSIDIARIES Medallion Financial Corp., or the Company, is a specialty finance company organized as a Delaware corporation that reports as a bank holding company, but is not a bank holding company for regulatory purposes. The Company conducts its business through various wholly-owned subsidiaries including its primary operating company, 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. The Bank is subject to competition from other financial institutions and to the regulations of certain federal and state agencies, and undergoes examinations by those agencies. The Bank was formed in May 2002 for the purpose of obtaining an industrial bank charter pursuant to the laws of the State of Utah. The Bank originates consumer loans on a national basis for the purchase of recreational vehicles, or RVs, boats, collector cars, and other consumer recreational equipment and to finance home improvements such as roofs, swimming pools, and windows. Prior to 2015, the Bank originated commercial loans to finance the purchase of taxi medallions, all of which are serviced by the Company. The loans are financed primarily with time certificates of deposit which are originated nationally through a variety of brokered deposit relationships. The Company also conducts business through its subsidiaries Medallion Capital, Inc., or Medallion Capital, a Small Business Investment Company, or SBIC, which conducts a mezzanine financing business; Medallion Funding LLC, or MFC, an SBIC, which historically was the Company's primary taxi medallion lending company; and Freshstart Venture Capital Corp., or FSVC, which historically originated and serviced taxi medallion and commercial loans and was an SBIC through 2023. Medallion Capit

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