8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 28, 2022

MEDALLION FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

001-37747

(Commission File Number)

04-3291176

(IRS Employer Identification No.)

437 Madison Avenue

New York, New York 10022

(Address of principal executive offices) (Zip code)

(212) 328-2100

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	MFIN	NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 7.01 Regulation FD Disclosure.

Medallion Bank, a wholly owned subsidiary of Medallion Financial Corp. (the “Company”), issued a press release to the news media announcing, among other things, Medallion Bank’s results for the quarter and year ended December 31, 2021.

A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information in the press release is being furnished, not filed, pursuant to Item 7.01. Accordingly, the information in the press release will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The following exhibits are being filed with this Current Report on Form 8-K:

99.1	Medallion Bank press release, dated January 28, 2022
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: January 28, 2022

MEDALLION FINANCIAL CORP.
By:	/s/ Anthony N. Cutrone
Name:	Anthony N. Cutrone
Title:	Chief Financial Officer

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE:

MEDALLION BANK REPORTS 2021 FOURTH QUARTER AND FULL-YEAR RESULTS AND DECLARES SERIES F PREFERRED STOCK DIVIDEND

SALT LAKE CITY, UT – January 28, 2022 – Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech partners, announced today its 2021 fourth quarter and full-year results.

2021 Fourth Quarter Highlights

• Net income of $19.0 million, compared to net income of $14.3 million in the prior year period.

• Net interest income of $37.3 million, compared to $31.3 million in the prior year period.

• Provision for loan losses was $1.6 million, compared to a quarterly benefit of $4.0 million in the prior year period.

• Annualized net charge-offs were 0.3% of average loans outstanding, compared to 9.7% in the prior year period.

• The recreation and home improvement loan portfolios grew 20.8% and 30.7%, respectively, from December 31, 2020.

• Total assets were $1.5 billion, total capital was $262.4 million, and the Tier 1 leverage ratio was 17.5% at December 31, 2021.

2021 Full-Year Highlights

• Record net income of $70.0 million, compared to net income of $2.5 million in 2020.

• Net interest income of $136.8 million, compared to $118.3 million in 2020.

• Return on assets was 5.0%, compared to 0.2% in 2020.

• Provision for loan losses was $3.7 million, compared to a provision for loan losses of $63.0 million in 2020.

• Net charge-offs were 1.2% of average loans outstanding, compared to 5.0% in 2020.

Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “We finished our best year since we began operating in 2003 with strong quarterly net income driven by the continued growth of our consumer lending businesses. Both our recreation lending and home improvement lending segments had exceptional years. The industries served by these segments experienced elevated demand throughout 2021, which led to sustained portfolio growth, plus we continued to benefit from historically low loan loss provisions. We ended the year with a return on assets of 5.0% and a return on equity of 29.1%, both consistent with supportive economic conditions and growth in the recreation and home improvement industries. We are focused on building on this momentum in 2022.”

Recreation Lending Segment

• The Bank’s recreation loan portfolio grew 20.8% to $965.3 million as of December 31, 2021, compared to $799.0 million at December 31, 2020.

• Quarterly net interest income was $28.7 million, compared to $24.9 million in the prior year period.

• Recreation loans were 68.2% of loans receivable as of December 31, 2021, compared to 68.4% at December 31, 2020.

• The quarterly provision for recreation loan losses was $2.1 million, compared to $3.0 million in the prior year period.

• Recreation loans 90 days or more past due were $3.9 million, or 0.5% of gross recreation loans, as of December 31, 2021, compared to $5.4 million, or 0.7%, at December 31, 2020.

Home Improvement Lending Segment

• The Bank’s home improvement loan portfolio grew 30.7% to $436.9 million as of December 31, 2021, compared to $334.2 million at December 31, 2020.

• Quarterly net interest income was $8.5 million, compared to $6.8 million in the prior year period.

• Home improvement loans were 30.9% of loans receivable as of December 31, 2021, compared to 28.6% at December 31, 2020.

• The quarterly provision for home improvement loan losses was $1.2 million, compared to $0.7 million in the prior year period.

• Home improvement loans 90 days or more past due were $133,000, or less than 0.1% of gross home improvement loans, as of December 31, 2021, compared to $171,000, or less than 0.1%, at December 31, 2020.

Series F Preferred Stock Dividend

On January 27, 2022, the Bank’s Board of Directors declared a quarterly cash dividend of $0.50 per share on the Bank’s Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, which trades on the Nasdaq Capital Market under the ticker symbol “MBNKP.” The dividend is payable on April 1, 2022, to holders of record at the close of business on March 15, 2022.

*                *                 *

About Medallion Bank

Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats and home improvements, and offering loan origination services to fintech partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

For more information, visit www.medallionbank.com

Forward-Looking Statements

Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales, net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as “expect,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature, such as “building”, “maintaining” or “momentum.” These statements relate to our future earnings, returns, capital levels, growth prospects, asset quality and pursuit and execution of our strategy. Medallion Bank’s actual results may differ significantly from the results discussed in such forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in Medallion Bank’s Form 10-K for the year ended December 31, 2020, and in its Quarterly Reports on Form 10-Q, filed with the FDIC. Medallion Bank’s Form 10-K, Form 10-Qs and other FDIC filings are available in the Investor Relations section of Medallion Bank’s website. In addition, Medallion Bank’s financial results for any period are not necessarily indicative of Medallion Financial Corp.’s results for the same period.

Company Contact:

Investor Relations

212-328-2176

InvestorRelations@medallion.com

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MEDALLION BANK

STATEMENTS OF OPERATIONS

(UNAUDITED)

	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
(In thousands)	2021			2020			2021			2020
Total interest income	$	41,436		$	36,349		$	154,310		$	140,654
Total interest expense		4,178			5,015			17,544			22,330
Net interest income		37,258			31,334			136,766			118,324
Provision (benefit) for loan losses		1,578			(3,959	)		3,746			63,048
Net interest income after provision for loan losses		35,680			35,293			133,020			55,276
Other income (loss)
Write-downs of loan collateral in process of foreclosure and other assets		(140	)		(7,393	)		(2,990	)		(18,199	)
Other non-interest income		386			86			1,144			261
Total other (loss)		246			(7,307	)		(1,846	)		(17,938	)
Non-interest expense
Salaries and benefits		3,838			2,665			12,237			10,275
Loan servicing		2,756			2,739			10,692			11,158
Collection costs		1,305			1,021			4,775			4,294
Regulatory fees		489			874			1,872			1,822
Professional fees		366			446			1,695			2,017
Occupancy and equipment		217			106			789			783
Other		872			633			3,552			3,546
Total non-interest expense		9,843			8,484			35,612			33,895
Income before income taxes		26,083			19,502			95,562			3,443
Provision for income taxes		7,071			5,177			25,563			928
Net income	$	19,012		$	14,325		$	69,999		$	2,515

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MEDALLION BANK

BALANCE SHEETS

(UNAUDITED)

(In thousands)	December 31, 2021			December 31, 2020
Assets
Cash and federal funds sold	$	61,402		$	58,977
Investment securities, available-for-sale		44,772			46,792
Loans, inclusive of net deferred loan acquisition costs		1,415,415			1,167,748
Allowance for loan losses		(53,384	)		(65,557	)
Loans, net		1,362,031			1,102,191
Loan collateral in process of foreclosure		21,438			35,557
Fixed assets and right-of-use assets, net		4,230			3,418
Deferred tax assets		7,576			11,839
Due from affiliates		—			3,298
Income tax receivable		—			549
Accrued interest receivable and other assets		37,788			28,746
Total assets	$	1,539,237		$	1,291,367
Liabilities and shareholders’ equity
Deposits and other funds borrowed	$	1,250,880		$	1,065,398
Accrued interest payable		1,228			1,515
Income taxes payable		16,104			—
Other liabilities		7,672			5,980
Due to affiliates		906			—
Total liabilities		1,276,790			1,072,893
Total shareholders’ equity		262,447			218,474
Total liabilities and shareholders’ equity	$	1,539,237		$	1,291,367

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XML

Document and Entity Information	Jan. 28, 2022
Cover [Abstract]
Entity Registrant Name	MEDALLION FINANCIAL CORP
Amendment Flag	false
Entity Central Index Key	0001000209
Document Type	8-K
Document Period End Date	Jan. 28, 2022
Entity Incorporation State Country Code	DE
Entity File Number	001-37747
Entity Tax Identification Number	04-3291176
Entity Address, Address Line One	437 Madison Avenue
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10022
City Area Code	(212)
Local Phone Number	328-2100
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, par value $0.01 per share
Trading Symbol	MFIN
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false