Medallion Financial Corp. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on consumer finance and commercial lending, saw its total assets increase to $2.9 billion, up from $2.6 billion at the end of 2023. This growth was driven by a rise in loans, which reached $2.5 billion, compared to $2.2 billion at the end of the previous fiscal year.
The company’s net interest income for Q3 2024 was $52.7 million, an increase from $48.8 million in Q3 2023. For the nine months ended September 30, 2024, net interest income totaled $150.5 million, compared to $139.1 million in the same period of 2023. This increase in net interest income was attributed to higher yields on interest-earning assets and growth in the consumer loan portfolio, particularly in the recreation and home improvement segments.
However, profitability metrics showed a decline. Net income attributable to common stockholders for Q3 2024 was $8.6 million, down from $11.2 million in Q3 2023. For the nine months ended September 30, 2024, net income was $25.7 million, compared to $40.8 million in the same period of the previous year. The basic net income per share decreased to $0.38 for Q3 2024 from $0.50 in Q3 2023.
The provision for credit losses also increased significantly, reflecting a more cautious approach amid rising delinquency rates. The provision for Q3 2024 was $20.2 million, up from $14.5 million in Q3 2023. The allowance for credit losses as of September 30, 2024, stood at $96.5 million, representing 3.88% of total loans, compared to $84.2 million (3.80%) at the end of 2023.
Strategically, Medallion Financial has been active in the debt markets, completing a private placement of $5 million in unsecured senior notes in August 2024 and amending existing notes to extend maturities and reduce interest rates. The company has also reinstated and increased its quarterly dividend, now at $0.11 per share, reflecting confidence in its ongoing operations.
The company’s stock repurchase program remains in effect, with $15.4 million authorized for repurchase as of September 30, 2024. Medallion Financial continues to explore various financing options to enhance liquidity and support growth, including asset sales and securitization programs.
About MEDALLION FINANCIAL CORP
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