Medallion Financial (MFIN) Noble Capital Markets Emerging Growth Conference summary

Business overview and portfolio diversification

• Diversified away from taxi medallion lending, now only 0.3% of business.

• Portfolio doubled in five years, reaching $2.4 billion.

• Focus on niche markets with high yields and low competition.

• Rec loans make up 63% of portfolio, home improvement 31%, commercial 5%.

• Strategic partnerships and fintech collaborations are rapidly growing.

Financial performance and growth

• Net interest margin exceeds 800 basis points, double or triple most banks.

• Rec loans yield 15%, home improvement loans yield 10% with high FICO scores.

• Commercial lending group averages 15% annual returns since 1998.

• Loan book growing at 13% annually, with $2.5 billion in loans.

• Earnings up 20% in the first nine months of the year, with $30 million after tax.

Capital structure and shareholder returns

• Trading at five to six times earnings and below book value.

• $40 million stock buyback approved, with 10% of shares repurchased in 2022.

• Dividend yield near 5%, with increases every six quarters or less.

• Management owns 20% of stock, aligning interests with shareholders.

• Three-pronged capital allocation: dividends, buybacks, and bank growth.