Medallion Financials' Investor ZimCal Disturbed By Q2 Results; Says 'Results Show Worrying Trends That Must Be Addressed Immediately'

Author: Benzinga Newsdesk | August 20, 2024 03:35pm

• 2Q24 results show worrying trends that must be addressed immediately.
• Core charge-offs (YoY), ROAA, ROAE and holding company cash-burn trended poorly.
• Quarterly earnings, ROAA and core ROAA (Ex. Taxi Medallion) are at 3-year lows.
• Low Price/Tangible Book Value multiple may be an indication of market skepticism despite Russell 3000 inclusion.
• ZimCal believes that Medallion Financial Corp. has tremendous upside with the right governance and leadership.
• ZimCal previously provided MFIN with a version of its "5 Steps to Improvement" plan that anticipated current risks and negative trends and urges management to take decisive, proactive action.

MINNEAPOLIS, Aug. 20, 2024 (GLOBE NEWSWIRE) --

Please read the full release with accompanying graphs, sources and details here. Summary of the release below.

ZimCal Asset Management, LLC, and its affiliates (collectively "ZimCal", "We", "Our") are one of the largest investors in Medallion Financial Corp. (the "Company" or "MFIN") and have been invested in MFIN for over 3 ½ years. Our singular focus is on making MFIN better and unlocking the tremendous potential of Medallion Bank. See www.restoretheshine.com for details on the recently ended proxy contest to replace 2 incumbent directors, where, despite insider ownership that gave MFIN a 44% lead, ZimCal still earned 22% of stockholder votes with over 1 in 4 stockholders voting against MFIN's compensation plan. We believe that MFIN's board of directors (the "Board") has shown weak governance and is beholden to the Murstein family rather than to stockholders. We also believe that MFIN's management team is overpaid and must be improved. Until we see positive changes, we will work to hold MFIN's Board and management team accountable.

Posted In: MFIN