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MFIN Medallion Financial

Participants
Andrew Murstein President
Alvin Murstein Chairman
Larry Hall CFO
Alex Arzeno Director, IR
Mike Grondahl Northland Capital Markets
Jeff Kitsis Sandler O'Neill
Scott Buck B. Riley
Giuliano Bologna BTIG
Henry Coffey Wedbush
Call transcript
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Operator

Good morning and welcome everyone to Medallion Financial's 2018 Fourth Quarter and Full Year Earnings Call. By now, everyone should have access to the earnings announcement which was released prior to this call and which may also be found on the Company’s website at medallion.com.

Before we begin formal remarks, we need to remind everyone that the matters discussed on this call include forward-looking statements or projected financial information that involve risks and uncertainties that may cause the Company's actual results to differ materially from those projected in such forward-looking statements and projected financial information. These statements are not guarantees of future performance and therefore undue reliance should not be placed upon them.

For further information on factors that could impact the Company and statements and projections contained herein, please refer to the Company's filings with the Securities and Exchange Commission. projection on information of information of call. and call during the statement this based is available forward-looking of made financial this date Each to us required to forward-looking We update any obligation statements disclaim unless by law. our would of Financial. President Andrew Medallion like introduce I now Murstein, to

Andrew Murstein

and everyone you quarter morning earnings call. in our for Good year participating and fourth thank full

is including we our our of Joining Larry filings. Hall CFO, as now information in me Murstein; with Investor financial Alex holding shareholders our Alvin Medallion Relations, of Also, our company on the of results present quarter the segment and today's result subsidiaries wholly-owned Chairman, databank we operations. call the Arzeno. bank of a or This Bank our reported current is and Director third change, quarterly our condition picture consolidation our and as providing more transparent a future controlled this

have bank as consumer executed Medallion more months strategic the metrics our noted which statement, we we for on Additionally, accounting financial away from higher-yielding a transition the in continued lending focus nine and was out laid company profitable XXXX commercial holding segments. initiatives on the certain year we the we the just our reflecting model.

we our clarity Bank. to Over DZ the last two quarters, agreement debt provided with in regard

million and to of With our everyone quarter, $XX.X loans and As gain stated, owed the about net and Medallion Medallion XXXX. book loans, to intangible year earnings at foreclosure end million debt We on to process eliminated ended of taxi comprising let million a compared result us balance to of taxes its sheet removed $XX.X update $XX.X of XX% payables loans the medallion and Trust with the from our portfolio. these of XX% and structural changes value in the first finalized III that of lender. able of record taxes in November, a loan the million before we $XX.X after were fourth

a net managed portfolio deconsolidation stood XXX million was Quarter-over-quarter at XXX December of for provision million of fourth of from as reversal The million this in first losses Trust XX.X on the the XX.X XX.X the as reiterate XX, when largely Bank reserves portfolio of non-cash million offs and million million III. III, combined medallion down realized medallion for Trust recorded as quarter Once again, XXXX. X.X the the and of as that of deconsolidation of reserves. losses we versus a reflecting XX%, adjustments the we as the as Our we December reduced losses XX, well the $X.X second XXXX the recorded to attributed non-cash to primarily provision result as quarter with The the described portfolio quarter, reflects also above. third loan charge-offs. and million Medallion in charge recorded in that valuation reduced quarter, of was quarter want in and

medallion collateral quarters confidence stability saw valued we City demonstrating $XXX,XXX $XXX,XXX. wheelchair collateral XXX of nonperforming the consistent to XXX Our compared for XXXX. in We the at liquidity medallion in over total medallion of have TLC last The transfers been New as New values medallion once marketplace greater reported year and the medallion XXXX, market. in the and accessible again of three York York

loans. of We and are when have progress necessary, manage the recovery processes. making we to personal we all portfolio current these feel will on which guarantees diligently pursue continue We we our and

value occurs history In or loan million loan which nonaccrual the we payment maintain we begin financed, of sold total, book or until be When and principal is As worth can and that saw including the amount loans. stated paid quarter. these the payments is income are on we made to off point a principal recorded. interest is in loan principal medallion last the payments during payments receive applied reserve charge-offs and reasonable loans fourth $XX loans typically recoveries one to quarter a of existing on restructured are in collateral interest of

Turning consumer now the to them in proud I before year income for Medallion hard our quarter teams lending and work for nine commend to the throughout fourth great both to for and These to entire put months continue our XXXX. several the both the future. XX.X be show forth as been years. had ending They Net Bank consumer focus for of XXst, another segments Medallion the steady segments growth after engine the and million quarter. commercial and Capital. past value XX taxes quarter. have continue continue million subsidiaries subsidiaries Company's the in was am segments. December commercial and the add of earnings

initiatives allow us expand to have foundation explore our commercial believe will intact also to so. do We to and continue that we the loan activity solid

consumer our XX, XXX As of net stood XXXX, portfolio December at million.

you at add loan the the over over ROA nine metrics the ROE it improvement would segment, segment, non-factoring of home and the the X.XX% on of years, of XX. segments loans. wanted ROE some I lending recorded sold recorded X.X been X.XX% and payments outstandings quickly XX.X%, December XX.X%. last Medallion of ROA over sales been if However, [rec] on in our at over ended highlight we looking made and Bank our four to have months billion an lending two back any key we our and our consumer for three When that might've an

and grow targeted lending content creation Our strategy marketing and improvement segments, involved management, to campaigns. [rec] home share our brand is focus on market and

results. our at give to end us highlights it recorded will and compared continues the bank XXXX a fourth yearend who ratio the some turn as improving regarding well In over in to of X XXXX, to I'll capabilities XX.XX% to is progress initiatives We now beyond. of that support brief closing, the the to Larry bank leverage focus demonstrating the are XXXX, our capitalized of confident capital quarter end Tier at and XX.XX% call the forward.

Larry Hall

Thank you, Andy.

assessing fourth annual you take XXXX a me recorded Medallion $XX some year. full for while of Bank the results. of $XX.X Let interest on few while quarter net Medallion through of for our million recorded highlight fourth income million the financial quarter our

of or the pleased continue charged-offs. strength the We the is for in loan result III. to be which the continue share nine for X.XX% non-cash $XX the in $X.X nine net or see with million, in of recorded When loan strong reversal to to with of in quarter we was the per third Bank loss was $X.XX reflecting for provision the quarter, second a of for of losses, the combined last a reported In the X.XX% per the quarter, quarter million year last in The consumer we as $XX.X as this of medallion and the of $X.X $XX.X net losses quarter. XXXX Medallion the million businesses. our of and reserves and losses quarter. quarter the earnings in when million. to $X.X $X.XX of result as first year compared the net third provision downward a months increase share interest the valuation the compared months for recorded looking a adjustments year quarter interest realized of income at medallion $X.X X.XX% fourth million for $XX.X margin at margin Trust was last million the asset income Net deconsolidation the million trend Net was million

side. basis while on million. the the X.XX% nine in consistent. low consumer report and to quarter loan days we percentage $XX.X rate more XX The XXXX. $X.X the third to months, net X.X% reflecting recorded $XXX a over the quarter to first decrease delinquent decreased on gross or of Bank. a we loans delinquencies positive medallion or Quarter-after-quarter, XX rate with XXXX $XX.X decrease taxes was of XX, in Loans due quarter III. average fourth the reported loan, the million portfolio a was XX.X% $XXX million the to Medallion X.XX% the past to Our partially it quarter interest X.XX% with stay after as sides rates the in commercial million at Trust the Earnings delinquent compared the continues for the portfolio fourth business loan deconsolidation third were XX% compared of $XX.X were combined a second were consumer quarter. line of in or portfolio's $XXX December XXXX, in continue the in X.XX% trailing the quarter, million quarter the fourth the X.XX% and of of in million million the Loans medallion XX% days as average end consumer interest from for from from The throughout a and for quarter

quarter the third a interest portfolio in was slight quarter. from on XX.XX% rate the This the XX.XX% the decrease

the However, the XX.XX% year. XX.XX% of in this up from and second first recorded and quarters

the in second quarter. our and solid progress quarter. for decrease in are The To mezzanine quarter, fourth XX.X% related lending XXXX portfolio investments to our with the as the as segment in The several is quarter our The average balance portfolio, $XX.X stated with the income from million sheet. commercial made the compared have to lending in million was strengthening gain throughout our fourth we Our to the of XXst release, rates making and which large which up to $XX.X due large rate the reduce also Company has some we quarter $X.X for recorded equity Company. million for to primarily net conclude, reported line commercial included of continue the $X.X XXXX. third the interest million great liabilities profits in continues interest $X the perform was of we in previous stake. compared payoff was delivered lending in segment the and The as redemption press million of December

call medallion-related XXX $XX the debt I'll We at our now Andy. million end to have to million XXXX bank the yearend. from reduced at that, turn With of back provided

Andrew Murstein

begin the Operator, you, Q&A the can we portion of Thank call. Larry. now

Operator

Northland Instructions] Please Mike go [Operator Our Grondahl ahead. question from first with Markets. comes Capital

Mike Grondahl

or rate you medallion maybe thinking bit about the utilization positive in you City for like are a look about the regulations are your of you seeing And that proposals Could portfolio? how talk New industry? the medallion York some little

Andrew Murstein

getting rates cabs They most the out, So be continues from say fleet. of The of but in cars the are obviously are their business [EEL] getting to they many XX% for solid. operators more competition is rates, the over holding occupancy companies, are out a utilization There own. I’d the meaning cars. terms of the are most lot of how fleet than

is the So, buying they in XXXX. substantially up we went are well transfers and are evidence medallion doing there medallions,

XXX I XXX to think medallions moved or XXXX it so once in sold XXXX. in about being

are as you trying help are there is regs, help In and a governor the terms The The of correct, industry. City of the the out business. they to proposals and for as both much up are to lot there New can. York talk mayor politicians standing

Some new the like a government city after there of XXXX the a medallion in for banks its councilman, I Ruben much think for or proposals, bailout back fund recession who proposed owners did the Diaz, is so.

that as that would quicker both if money for these the the extremely congestion take that black meters, of any consumer they but passes. Cuomo know on also cars, around helpful, mean in effect will taxis black in so and that pricing There XXXX if road The would extremely shows cars don’t So traffic. which pass. not and they stuck proposed it’s I commercial Governor it the be turnover obviously just effort can good to it so when meters guarantees and helpful, things would well making be help. an for Less that pass, taxis they're move cars. cars no when also more as cars quicker, make the is

the now proposal to is industry. every there So, single out that’s beneficial very

Mike Grondahl

then, the of X.X I you that release through read press recovery. And million have

up and to I think million kind Or speak the your that’s beginning that big you quarters. that of a prior of from could just step outlook? X.X trend? Is new

Andrew Murstein

to hard a it’s trend. It’s if tell,

their have They to to spotty. is will table. recoveries. The guarantees. to of high think but yes, it don’t their delinquent after are that customers that a think lot medallions. we they the don’t news next go quarter, lose us want obviously, is I I going want don’t directionally good They personal coming are as to

the on down. law And loans So, are coming They paying there. us guys both litigate of their giving side we every extra won, to current make with money, payments are corporately so technically or are loans we right they these owe so far, personally, we are collateral. the us they and their the and up when time

So but when all choppy. pushed, we down to think I the more borrowers we to very deals and amounts. and with then year, see and will this you'll some the it get the workout again hope the math go current to predict fair coming hard The recovery. later recoveries It’s exact be is

Operator

Our comes ahead. Alex go O'Neill. Please question Sandler next from Twerdahl with

Jeff Kitsis

actually was Jeff I race us about is morning. wondering, Kitsis This Alex could sponsorship how should think and tell in seasonality on you for this we winnings?

Andrew Murstein

That up the do rate November, down. is a go usually breakeven hand mean, with spike even choppy, I it to so QX a so at revenues season time QX though, expenses usually from also the of time, then in you'll operating and that. is to in kind see team slows primarily is lot The race hand from February though

breakeven it's the quarter-by-quarter on most basis a level. at for but So -- a part,

Jeff Kitsis

question those the costs, near in ramp-up to to the outlook the And what's for continue those? will pushing term? And

Andrew Murstein

costs? which Well,

Larry Hall

Collection costs.

Andrew Murstein

they I than in were did news recovering as much the quarter. will collecting ramp we when are winning the and Again, higher this little is are up bit They and spending don’t money they judgments. as good last typical. think a we

as not be in next quarters. it the high probably So, will several

Jeff Kitsis

so you of do capital holdco? capital how in bank the versus when in uses considering growth at Medallion dividend Bank, And up weigh the

Andrew Murstein

Right at release you ROEs have Their about after-tax, it business. are Marine pretax, to plan the and XX% XX% level. and now, to the over something is bank in as are seen RV They hold high. their extremely earning the continue

capital. they There's So, year. over lot of the of are use per that feels now, growing still. bank at runway a best are They XX% right

ROEs the to bank those capital that’s is grow best the think continued the with type growth, those and holding that and of for to us the I So divisions. use to way meantime on in

Jeff Kitsis

me. specific? both question reserve general What's last the and the for medallion And for portfolio

Andrew Murstein

medallion. so down we're per the that about that’s $XXX,XXX So, know writing I there about is way handle don’t the specific the medallions to the is, we down of per reserves, or no so I Chicago, to think are we values, medallion. laws that medallion XX,XXX In

Larry Hall

$XX,XXX.

Andrew Murstein

So, we’re has On there reserve at of the about… varies pretty but top numbers been past are that, that in conservative there. it general

Larry Hall

XX%.

Andrew Murstein

pulling Larry just up so XX% now, so, or information. right is some

Larry Hall

end the was XX.X reserve The year the in medallion at loans of million. approximately

Operator

Our comes question B. go from Riley. Buck next Scott with Please ahead.

Scott Buck

loan are at we of down any behind opportunities Now you, I'm that just are if on you portfolio? the III Trust to typical Or curious if this just waiting have excavate structure the additional wind there roll point, the medallion the off schedule?

Andrew Murstein

you mean There as ago, have of million XXX XXX made years three long-term is opportunities, we to medallion I a lot loan see. The impressive. from down can really million. is went progress We

the potential last by guarantees off entities the like that and our other written exposure is we've have have we we years, equity. candidates deconsolidation our in already FreshStart, all there are company So, There decreased parent which are three like of Trust. no There XX%. there

progress lot we there. a good of directionally, are very So, making

Scott Buck

lending I side, in ratio how looks little demand about like what's a mean, growth that X bit XXXX? here. you gives you of consumer the in leverage it thinking Tier runway And on generally? business And are like your then

Andrew Murstein

the to because level capital I than expect We we off XXXX point on know X% don't at a more levels, plan that. loans. We than as year, off down same selling loans not last sheet X% the or last is if to grow your 'XX because are we probably think year banks lot well-capitalized balance versus in you on the sold -- are more

percent probably in best the one are top country of of terms few in capital the capitalized the in we So, level. banks

balance sheet. be balance the to well look plan keep was we will sell them. get aggressive don’t on loans for will holding off on selling sheet, similar above XXXX. it’s think Volume in it be any since in to But we going XXXX if it, we be wise that goal where will we that’s XXXX. we If premiums. big will would obviously, offers, will But be the at So on we it

Scott Buck

to hike kind in any And what are pass one any consumers? then And you rate deposit On cost, of the seeing what's terms ability quickly. pressure? last to on of there

Andrew Murstein

We the that I its to little we margins able a overall will two be the for should rate and the the or similar drag, expect will increasing because us yielding customers, but to will be the bit portfolio X.X%. improving, one but margins going similar, keep we hikes in meaning to think charge more net margins interest XXXX, be is medallion

XX%. yielding wonderful got these other We have businesses,

So loans again business at as are think medallion in the grow most obviously, banks as an they There at. current triple probably should increase more levels, level the it are as has been, and already the But at interest extremely burn to continues the XXXX. XXXX. they going net are increase even off of the margin to will double or high in I consumer

Operator

comes from Giuliano ahead. go Please Our next question Bologna BTIG. with

Giuliano Bologna

guess on I comment being up following the medallions on portfolio. here the

Just to and main the dockets, and all that is the looks court like through of how that think present have recovery should potential getting why is on judgment those look go side, up But to in I so recoveries and doesn’t reason it I or judgments. go the medallion try through at [indiscernible] forward? perfect over the we and to bring about one trend million ability that $X to recoveries XXXX going the that in pay period as far correlation

Andrew Murstein

judgments may of against diligence money, judgments. a winning a difficult the up good so then to you done settling. borrowers and that’s they and get little on lot have of Yes, owe of lot Yes, them Company, lot a end off helpful. public we the what's are looking have we start work a them on and the Again,

that to even that, of if goal profitable fraction all and get written about talking have our off loans obviously been we a as of we as it’s for recoveries that loans immensely is much to written possible we’ve the line are So, get bottom flows when it $XXX million over off. of

as So, Again, of be after. it as to was more be as got it go going was last of than this quarter. of think to high last we it’s but won't hundreds dollars judgments long-term millions I quarter, it have

to so those been trends. successful And continue hope we've far, we so very with

Giuliano Bologna

are XXX Is on some where on? And agreement the then, included or the sheet. reduced restructuring have any the already in portfolio into of about the sort a of -- of percentage entered balance loans amount dollar you the sense they or thinking remaining there million that you principal

Andrew Murstein

Yes, so the a of when borrower that XXX the is that goes over way we write delinquent down works medallions. the accounting is to the days, and it value

$XXX,XXX Let and say, it's a it loan we delinquent because XXX or down $XXX,XXX days you so. have write see to over

value, huge until take we terms in a then reserve or increase we borrower current, settlement comes And the at a still two whatever we he after loan have in recovery fact, judgment owe come years don't the off. three the in and off making So, we paid If the and longest his were. doesn't XXX,XXX. that that starts did write in

into, that entering in income of gap. judgments being statement laws our see being they even So lot you and are the yet a us not reflected currently made per

loans probably off, will as get as 'XX XXXX soon events. but they they So, and are those paid

Giuliano Bologna

did just commercial the on then side, quick you amount of And the guys commercial gain disclose side? the on a the one

Alvin Murstein

about you quarter this the have really talking were lending? our gains from – don’t any mezzanine We

Giuliano Bologna

that side Yes, yes. on

Alvin Murstein

Okay, will address yes, Larry that.

Larry Hall

from was quarter Yes, the some the investments sales equality the were of that related of for gains to income off. from stakes the sold about half of the

Operator

go Coffey comes Wedbush. from question Henry next Please Our ahead. with

Henry Coffey

explain to the can but -- you doing different companies holding would dynamic and a any capital you that? dividend think structure, in as advantage do Or know obviously consolidated to now, the capital dynamic the asked, Is you company. if we the entity, there and right people between how about to about holding them company here? bank me I your and there's position the to Maybe you be normally, when think at look one

Andrew Murstein

doing more one is. relationship the and cash up of son father and is son growing Well, a a is the father mature I and than extremely now off is well the strong where and think

is went based XXXX independent has started business, improvement and doing own lending. board home the Salt directors doing of in So, and consumer bank in back as it’s great. and It Lake. you We and into know RV Marine

right So, they, its We they and fit. and when to it. their us retain make for and could it’s independently so paid look own but ask think far been independent the to of decision at they everything them obviously, retained dividend decisions they that's

expectations much stop again. short-term company. as eventually, as paid from $XX I past, they dividend the parent year we’ll and So, probably million after In a no, paying dividends them the think the

ROE keep to north So, market to right best competitors now, of try share, they capture grow of possible of the business and out as to that are just trying as XX%. try impressive

Henry Coffey

your to Would or… company? the a sort you need to the there the from regular you could that do the be of outside grow there any bank combined Do at something earnings bank the dividend Would advantages to holding financing? with Is getting money more holding? help the of

Andrew Murstein

Yes, used will parent went I I it’s and my more into our bank capital, those put recommendation to with still out the in mean, ROEs. raised think probably bank. the be company money best if

has up I million Capital. dividend Medallion mezzanine the don’t So, revenue $X the just brought Medallion company, million year where a immediate to or know, was sources up, nice needs group, there is by from at Capital $X cash being is parent our no parent so. company the Giuliano

parent a bank source there company The of million of So, about charge million does loan year have got service the portfolio. we $X to fees income to there. $X servicing per good the

continue to up So, go sources if the suggest I bank several we nice revenue grow. capital but coming areas, from to we've would more into to had got

Henry Coffey

have long get to it anybody it, a to to other There airport alluded knows car. God some to into already. of think sort and and get recent, I when that only economic realize value goes can and is obviously minutes about who how thing you the XX to cab takes of The [indiscernible] talked we sort it

buying. medallion that an obviously value So, the some that in like cab operators seeing there there? the Is well-to-do capital institutional transaction season what some or and you’re the interest Or is from look economic old more economic opportunity? just to coming real is see

Andrew Murstein

that's good point. a Yes,

So, matter the no yes, for need been technology how there has right, a is. always good medallion

call the an in the minutes could on arranged are look in and the or when and You the street you Uber on five can for to areas literally and black seconds. go right set one of go cab you XX you phone all minute street the sidewalk are your the And the into airports, LaGuardia. up line X get onto walks where to street airports then now from are the holding points terminals and for away the cars

lot have level. business into So, business. hails the always buying at and smart that, and distressed investors of now airport and investors combination a coming street a see you medallions And are very and very of

prices medallion went ago several years so from X.X down So a million or to XXX,XXX today.

nearly earnings So as dropped not by the as revenues a the it’s drop, much huge that. and been have but

coming medallions had for operators up the you evidence and in up expand. So, amount both XXX, XXX the is that In existing that’s transfers. fold, and went of sold want eight fleet to who from it to XXXX, XXXX

who buy road and have as firms well. equity So, so can as they the cars funds more that expand as they our solid, is cars medallions more been put now proving and private buying business point are on and well hedge

is there lot a them of right So, for demand now.

Henry Coffey

of is economically would kind -- through an this entity one its going the recoveries and sell of done own the that by business of up terms loan loan in your cleaning the including maybe and transaction of probably really client working there you off book sort where greatest then, to transform just is one client by business? an return, essence -- create but And to opportunities

Andrew Murstein

Yes, medallion we have mean, foreclosed are have buyers I for. on almost lined every up single open about we both, that we

them and in of of are medallion, we way, would think, cash. that of XXX came If preference north for it you for $XXX,XXX selling per that kind looking us, them range. all paid I So all are be sell though somebody the

numbers, So preference comes XXX, we a deals someone at are lower carrying a good them even again though all getting about number. are cash if in

moving will, are we to cash selling price off buyers that once and in well. there we is have amount open keep them if So, our do large by as and to one, the we that one get comes

Operator

Our next with question Please Markets. comes Northland Grandal Capital go from Mike ahead.

Mike Grandal

the FreshStart What's deconsolidate? Trust the there the with size what that odds could timing? you possibly the are of And

Andrew Murstein

XX the I it’s number. about is up Larry, going and pull change, million think to

Here I million or just nothing as we XX confirming, do but that going Larry, about yes Mike potential, and to a that it’s at. another there, definite look there turn is to area happening is are so.

Mike Grondahl

be your at What would 'XX? the And think yearend what best million guess that XXX yearend 'XX? at is you would

Andrew Murstein

number? Which

Larry Hall

million. XXX The

Mike Grondahl

The XXX million of medallion loans.

Andrew Murstein

'XX. it be what Right, would end of

Mike Grondahl

Yes.

Andrew Murstein

down year to XX% million rates which I Again $XXX keep of would the XXX from going. is per goal The to is probably have think million the decrease be XX% going per I think been year. decreases. about probably

would our that be in somewhere So goal. area

Mike Grondahl

talked medallion the of of And market quarters little place? those you ago the couple third about in servicing opportunity, party a any a bit

Andrew Murstein

whether are them, for the to natural equity this it but There time there who would from from firms, are or do. nothing there is has from no eminent, we get others. we other area There out no us all portfolios buy and like in want expertise hedge firms, company be firms, close us servicers the that private

to the things these meantime. are our exposure so and portfolio our far which incremental our its is there servicing own income okay, to just the lot formed our talk choice is lap a reduce positive, focus our are on the So, work is deals, goal but is still and in is to just stuck of of always really we potential but nothing first and a is buyers

Mike Grondahl

on or the any bank, the potential At online could from interest maybe you third-party with lenders? comment any the partnerships just third-party

Andrew Murstein

club lemon them. of or country. cabbage that industrial talk noble charters been the interest the and Utah have whether and through issued entities of of few own they charter these non-deck ones with since continue bank is new preeminent any They charters loan We in think about acquisitions haven’t one. a banks. feel to applied XXXX so since None industrial the a It’s There their banking lot loan sofa charter applications lot for through partnered the I is or square. and bank very Utah like the companies in from of and them Walmart

our short-term, goal a anything interest is couple, point talking again to but line. are these will happen and with always I to eminent. a of product lot expand fintech but us our from think nothing in don’t So there's we companies to

Mike Grondahl

continued to credit lastly, quality be robust. just maybe consumer has in And really

I think delinquencies were even down year-over-year.

out what call would underwriting, you Just economy, good on? good

Andrew Murstein

FICO they used losses say would or spot-on management it’s several just keeps to, XX us years it, one Utah and reserves in even expected happen but are in for good then were better would the doing were hit, they extremely fact, out, the to were enough on out bring to go Back I been for on up and what the than for fortunate do. this pointed XXXX their cover the plan XXXX today. team And are us. nervous we They little the losses Leucadia scores point and recession so, next area and you before the been low where from XXXX, They in were ball. reasons. great board take we since the to we to as go in higher knocking work have laid for they the about as recession all than bit have them that ago. and learn they positioned and you and last we XX they delinquencies their when we that. know and showed consumer -- once I us for even years and they started not credit doing Yes, They as and underwriting some like

XXX are plus now about so, I they score and FICO are has about added improvement XXX. lending, think averaging which an back we XXX then average of home that top we or of on

quality, are you quality talking paper. plus A So A about

as we job positioned well. any So, have for done are they great recessions a and future

Operator

session. the This turn any President conference to back like Andrew Murstein for concludes over question-and-answer I remarks. closing to the would

Andrew Murstein

Great.

this So, morning's I everyone just to attending wanted call. thank for

not was via and contact end, at a XXXX, Relations everybody question investorrelations@medallion.com. follow have day. to happy great please that answered. your are email Investor To We at or up, XXX-XXX- Thanks if

Operator

This call. concludes today's conference

you You day. Thank a have and your lines. may disconnect participating, pleasant for