UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37747 MEDALLION FINANCIAL CORP. (Exact Name of Registrant as Specified in Its Charter) DELAWARE 04-3291176 (State of Incorporatio ...

Exhibit 99.1 FOR IMMEDIATE RELEASE: MEDALLION FINANCIAL CORP. REPORTS 2025 SECOND QUARTER RESULTS Reports 56% Increase in Net Income as Compared to the Prior Year Quarter Announces Third Quarter 2025 Dividend of $0.12 Per Share NEW YORK, NY – July 30, 2025 – Medallion Financial Corp. (NASDAQ: MFIN, "Medallion" or the "Company"), a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic part ...

Company Overview - Medallion Bank is an FDIC-insured bank that specializes in providing consumer loans for recreational vehicles, boats, and home improvements, as well as loan origination services to fintech strategic partners [5] Redemption Announcement - Medallion Bank announced that it will redeem all outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F on July 1, 2025, at a redemption price of $25.00 per share [1] - The redemption price does not include declared and unpaid dividends, which will be paid separately on the same date to holders of record [2] Post-Redemption Details - After the redemption date, the Series F Preferred Stock will no longer be considered outstanding, and dividends will cease to accrue [3] - The shares are held in book-entry form through The Depository Trust Company and will be redeemed according to DTC procedures [3] Contact Information - Investors seeking information about the redemption payment should contact the bank or their broker [4]

Company Overview - Medallion Bank is an FDIC-insured bank that specializes in providing consumer loans for recreational vehicles, boats, and home improvements, as well as loan origination services to fintech strategic partners [5]. Redemption Announcement - Medallion Bank announced that it will redeem all outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, on July 1, 2025, at a redemption price of $25.00 per share [1]. - The redemption price does not include declared and unpaid dividends, which will be paid separately on the same date to holders of record [2]. Post-Redemption Details - After the redemption date, the Series F Preferred Stock will no longer be considered outstanding, and dividends will cease to accrue [3]. - The shares are held in book-entry form through The Depository Trust Company and will be redeemed according to DTC procedures [3]. Contact Information - Investors seeking information about the redemption payment should contact the bank or their broker [4].

Core Viewpoint - Medallion Bank has successfully closed a public offering of 3,100,000 shares of its Series G Preferred Stock, raising an aggregate liquidation amount of $77.5 million, which includes a partial exercise of the underwriters' option [1][2] Group 1: Offering Details - The Series G Preferred Stock has a par value of $1.00 per share and a liquidation amount of $25 per share [1] - The offering was priced on May 15, 2025, and commenced trading on the Nasdaq Capital Market under the ticker symbol "MBNKO" on May 22, 2025 [2] - The offering was exempt from the registration requirements of the Securities Act of 1933 and was made only by means of an offering circular [5] Group 2: Use of Proceeds - Medallion Bank intends to use the net proceeds from the offering for general corporate purposes, which may include increasing capital levels, growing consumer loan portfolios, or redeeming outstanding Series F Preferred Stock, subject to regulatory approval [3] Group 3: Company Background - Medallion Bank specializes in providing consumer loans for recreational vehicles, boats, and home improvements, and offers loan origination services to fintech partners [7] - The bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp [7] Group 4: Management and Advisors - Piper Sandler & Co. and Lucid Capital Markets, LLC acted as joint book-running managers for the offering, with several other firms serving as lead managers [4]

PART I – FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Medallion Financial Corp.'s unaudited consolidated financial statements for Q1 2025, prepared under SEC regulations and GAAP, are presented [Consolidated Balance Sheets](index=6&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Medallion Financial Corp. reported **total assets** of **$2.85 billion**, **total liabilities** of **$2.40 billion**, and **total equity** of **$449.0 million** as of March 31, 2025 Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$2,847,738** | **$2,868,606** | | Net loans receivable | $2,261,334 | $2,265,428 | | Cash and cash equivalents | $131,512 | $98,238 | | **Total Liabilities** | **$2,398,726** | **$2,429,648** | | Deposits | $2,022,828 | $2,090,071 | | Long-term debt | $199,665 | $232,159 | | **Total Equity** | **$449,012** | **$438,958** | | Book value per common share | $16.36 | $16.00 | [Consolidated Statements of Operations](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The company reported increased **net income** and **diluted earnings per share** for Q1 2025, driven by higher **net interest income** and **other income** Q1 2025 vs Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total interest income | $75,425 | $67,070 | | Total interest expense | $24,013 | $19,153 | | **Net interest income** | **$51,412** | **$47,917** | | Provision for credit losses | $22,014 | $17,201 | | Total other income, net | $11,599 | $5,403 | | **Net income attributable to Medallion Financial Corp.** | **$12,014** | **$10,024** | | **Diluted earnings per share** | **$0.50** | **$0.42** | [Consolidated Statements of Cash Flows](index=10&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For Q1 2025, **net cash provided by operating activities** was **$36.3 million**, while **investing** and **financing activities** used cash, resulting in a **net decrease in cash** of **$11.6 million** Cash Flow Summary for Three Months Ended March 31 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $36,259 | $32,255 | | Net cash used for investing activities | ($4,695) | ($32,906) | | Net cash (used in) provided by financing activities | ($43,142) | $19,931 | | **Net (Decrease) Increase in Cash and Cash Equivalents** | **($11,578)** | **$19,280** | [Notes to Consolidated Financial Statements](index=11&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) The notes detail the company's accounting policies, loan portfolio, debt structure, segment performance, fair value measurements, and legal contingencies, including an SEC settlement - The company's **primary operating subsidiary** is Medallion Bank, an FDIC-insured industrial bank that originates consumer loans for RVs, boats, and home improvements, funded primarily by brokered time certificates of deposit[35](index=35&type=chunk) - The company adopted the **CECL methodology** (ASC 326) for estimating credit losses, which requires recognition of lifetime expected losses based on historical performance and reasonable future forecasts[55](index=55&type=chunk) - In December **2024**, the company reached an **agreement in principle** with the SEC's Division of Enforcement to resolve litigation related to activities from **2015-2017** The settlement is subject to approval by SEC Commissioners and the court[159](index=159&type=chunk) - Subsequent to the quarter end, on April **30**, **2025**, the Bank sold **$52.8 million** in **Recreation loans held for sale**, receiving total proceeds of **$55.9 million**[195](index=195&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=38&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Medallion Financial Corp.'s Q1 2025 performance, highlighting net interest income growth, margin changes, credit loss provisions, and liquidity [Company Background](index=38&type=section&id=COMPANY%20BACKGROUND) Medallion Financial is a specialty finance company focused on consumer and commercial lending, primarily funded by deposits and debentures, with Medallion Bank as its main subsidiary - The company's **strategic focus** is on its consumer finance (recreation and home improvement loans) and commercial lending businesses[199](index=199&type=chunk) - The company is considering various **strategic alternatives** for Medallion Bank, which could include an IPO, sale, or spin-off, but no decision has been made[205](index=205&type=chunk) [Average Balances and Rates](index=40&type=section&id=AVERAGE%20BALANCES%20AND%20RATES) For Q1 2025, the **net interest margin** tightened to **7.94%** as the **average cost of interest-bearing liabilities** rose more significantly than the **yield on interest-earning assets** Net Interest Margin Analysis (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Average Yield on Interest-Earning Assets | 11.65% | 11.34% | | Average Cost on Interest-Bearing Liabilities | 4.16% | 3.67% | | **Net Interest Margin, Gross** | **7.94%** | **8.10%** | - The increase in **interest expense** was primarily driven by higher borrowing costs for deposits, as older, lower-rate certificates mature and are replaced at current market rates[218](index=218&type=chunk) [Loans](index=42&type=section&id=LOANS) The **total gross loan portfolio** was **$2.49 billion** as of March 31, 2025, with Q1 2025 **loan originations** significantly increasing to **$281.6 million**, primarily due to the strategic partnership program Loan Originations by Segment - Q1 2025 (in thousands) | Segment | Q1 2025 Originations | | :--- | :--- | | Recreation | $86,833 | | Home Improvement | $48,796 | | Commercial | $9,707 | | Strategic Partnership | $136,240 | | **Total** | **$281,648** | [Provision and Allowance for Credit Losses](index=43&type=section&id=PROVISION%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) The **provision for credit losses** increased to **$22.0 million** in Q1 2025 due to rising loss rates and delinquencies, with the **total allowance** reaching **$100.4 million** - The increase in the **provision for credit losses** was driven by rising loss rates and economic uncertainty, particularly in the recreation loan portfolio[230](index=230&type=chunk) Allowance for Credit Losses Activity - Q1 2025 (in thousands) | Account | Amount | | :--- | :--- | | Balance at Dec 31, 2024 | $97,368 | | Charge-offs | ($24,646) | | Recoveries | $5,630 | | Provision for credit losses | $22,014 | | **Balance at Mar 31, 2025** | **$100,366** | [Segment Results](index=45&type=section&id=SEGMENT%20RESULTS) Recreation and Home Improvement segments drove **interest income**, Commercial lending contributed through **equity investment gains**, Taxi Medallion generated **net income** from recoveries, and Corporate includes the strategic partnership program [Recreation Lending](index=45&type=section&id=Recreation%20Lending) The **recreation lending segment** generated **net income** of **$8.0 million** in Q1 2025, despite decreased **originations** of **$86.8 million** and a high **provision for credit losses** of **$16.9 million** - Lower **origination volumes** of **$86.8 million** reflect restrictive underwriting standards and management's efforts to mitigate concentration risks[246](index=246&type=chunk) Recreation Lending Performance - Q1 2025 vs Q1 2024 (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net interest income | $38,425 | $34,282 | | Provision for credit losses | $16,870 | $17,030 | | **Net income after taxes** | **$8,014** | **$5,941** | [Home Improvement Lending](index=46&type=section&id=Home%20Improvement%20Lending) The **home improvement segment's net income** was **$3.3 million** in Q1 2025, down due to a higher **provision for credit losses**, with **originations** at **$48.8 million** reflecting restrictive underwriting - **Origination volumes** were slightly lower at **$48.8 million** due to ongoing restrictive underwriting standards and efforts to mitigate concentration risks[256](index=256&type=chunk) Home Improvement Lending Performance - Q1 2025 vs Q1 2024 (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net interest income | $12,807 | $11,813 | | Provision for credit losses | $2,845 | $898 | | **Net income after taxes** | **$3,328** | **$4,386** | [Commercial Lending](index=48&type=section&id=Commercial%20Lending) The **commercial lending segment** reported **net income** of **$4.9 million** in Q1 2025, driven by **$9.4 million** in **net gains on equity investments**, offsetting a **$3.1 million provision for credit losses** - The segment recognized **net gains** of **$9.4 million** from its equity investments during Q1 2025, a significant driver of its profitability[262](index=262&type=chunk) Commercial Lending Performance - Q1 2025 vs Q1 2024 (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net interest income | $2,290 | $2,547 | | Provision for credit losses | $3,114 | $216 | | Gains on equity investments, net | $9,430 | $4,167 | | **Net income after taxes** | **$4,909** | **$3,577** | [Taxi Medallion Lending](index=49&type=section&id=Taxi%20Medallion%20Lending) The **taxi medallion segment** reported **net income** of **$0.5 million** in Q1 2025, with **$1.7 million** in **net recoveries and gains** from asset collections, maintaining a **conservative valuation** for medallions - The company collected **$2.6 million** from taxi medallion assets, leading to **$1.7 million** in **net recoveries and gains** for the quarter[268](index=268&type=chunk) - A **conservative valuation** of **$79,500** per medallion continues to be used for the New York City and Newark markets, despite fluctuating higher transfer prices[267](index=267&type=chunk) [Consolidated Results of Operations](index=51&type=section&id=CONSOLIDATED%20RESULTS%20OF%20OPERATIONS) **Net income attributable to shareholders** for Q1 2025 increased to **$12.0 million** (**$0.50/share**), driven by higher **net interest income** and **other income**, partially offset by increased **provision for credit losses** and **operating expenses** Q1 2025 vs Q1 2024 Summary (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $51.4 | $47.9 | | Provision for Credit Losses | $22.0 | $17.2 | | Net Other Income | $11.6 | $5.4 | | Operating Expenses | $20.8 | $18.2 | | **Net Income (to shareholders)** | **$12.0** | **$10.0** | [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through diverse sources, with **total outstanding debt** of **$2.34 billion** as of March 31, 2025, including a new **SBA debenture commitment** and a **Federal Reserve discount window line of credit** - **Primary sources of liquidity** include brokered certificates of deposit, SBA debentures, private debt placements, and loan amortization[300](index=300&type=chunk) - In February **2024**, Medallion Capital secured a new **$18.5 million debenture financing commitment** from the SBA[303](index=303&type=chunk) Debt Composition as of March 31, 2025 (in thousands) | Debt Type | Balance | Percentage | Weighted Avg. Rate | | :--- | :--- | :--- | :--- | | Deposits | $2,023,124 | 87% | 3.75% | | Privately placed notes | $146,500 | 6% | 8.12% | | SBA debentures and borrowings | $70,500 | 3% | 3.84% | | Federal reserve and other borrowings | $65,000 | 3% | 4.50% | | Trust preferred securities | $33,000 | 1% | 6.69% | | **Total** | **$2,338,124** | **100%** | **4.09%** | [Dividends and Stock Repurchases](index=57&type=section&id=Dividends%20and%20Stock%20Repurchases) The board increased the **quarterly dividend** to **$0.12 per share**, and the company repurchased **60,185 shares** for **$0.5 million** in Q1 2025, with **$14.9 million** remaining for repurchases - The **quarterly dividend** was increased to **$0.12 per share**, effective for the dividend payable on May **30**, **2025**[322](index=322&type=chunk) - In Q1 **2025**, the company repurchased **60,185 shares** for **$0.5 million**, with **$14.9 million** remaining under the **repurchase program**[323](index=323&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company states no material changes occurred in its quantitative and qualitative market risk disclosures since the 2024 Annual Report on Form 10-K - There has been no material change in disclosure regarding market risk since the Annual Report on Form **10-K** for the year ended December **31**, **2024**[324](index=324&type=chunk) [Controls and Procedures](index=57&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls during the quarter - The CEO and CFO concluded that **disclosure controls and procedures** were effective as of March **31**, **2025**[325](index=325&type=chunk) - No changes in **internal control over financial reporting** occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[326](index=326&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=58&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company refers to Note 10 of the financial statements for details on legal proceedings, including a pending SEC litigation settlement - Details of the Company's **legal proceedings** are provided in Note **10**, subsections (c) and (d), of the consolidated financial statements[328](index=328&type=chunk) [Risk Factors](index=58&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company reports no material changes to the risk factors previously disclosed in its 2024 Annual Report on Form 10-K - There have been no material changes in **risk factors** from those disclosed in the Annual Report on Form **10-K** for the fiscal year ended December **31**, **2024**[329](index=329&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's Q1 2025 stock repurchase activity, including shares bought and remaining authorization Stock Repurchase Activity for Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Total Amount Paid (in thousands) | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31 | — | $— | $— | | Feb 1 - Feb 28 | — | $— | $— | | Mar 1 - Mar 31 | 60,185 | $8.83 | $531 | | **Total** | **60,185** | **$8.83** | **$531** | - As of March **31**, **2025**, approximately **$14.9 million** remained available for repurchase under the company's **stock repurchase program**[330](index=330&type=chunk) [Other Information](index=58&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The company reports no directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025 - No director or officer adopted, modified, or terminated a **Rule 10b5-1 trading arrangement** or **non-Rule 10b5-1 trading arrangement** during the fiscal quarter ended March **31**, **2025**[332](index=332&type=chunk) [Exhibits](index=59&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, which include CEO and CFO certifications pursuant to the Sarbanes-Oxley Act (Sections 302 and 906) and the Inline XBRL data files - Exhibits filed include **certifications from the CEO and CFO** as required by Sarbanes-Oxley Sections **302** and **906**[334](index=334&type=chunk) - The filing includes **Inline XBRL documents** for interactive data[334](index=334&type=chunk)

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) [Q1 2025 Performance Summary](index=1&type=section&id=Q1%202025%20Performance%20Summary) Medallion Financial reported strong Q1 2025 results, with net income increasing 20% to $12.0 million, driven by higher net interest income and loan originations Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $12.0 million | $10.0 million | +20% | | Diluted EPS | $0.50 | $0.42 | +19% | | Net Interest Income | $51.4 million | $47.9 million | +7% | | Loan Originations | $281.6 million | $173.1 million | +63% | | Total Loans | $2.5 billion | $2.2 billion | +12% | | Provision for Credit Losses | $22.0 million | $17.2 million | +28% | - The company has successfully transitioned from its legacy taxi medallion lending business, with strong performance from its consumer lending and commercial division, Medallion Capital[3](index=3&type=chunk) - Strategic partnership loan volume was a key growth driver, increasing to **$136 million** in Q1 2025 from just **$16 million** in Q1 2024[4](index=4&type=chunk) - Delinquencies in both consumer loan portfolios (Recreation and Home Improvement) improved compared to the previous quarter[4](index=4&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) Recreation and Home Improvement loan portfolios grew, while the taxi medallion segment continued its planned reduction, now under 0.5% of total assets Recreation Lending Segment (Q1 2025) | Metric | Value | YoY Comparison | | :--- | :--- | :--- | | Originations | $86.8 million | vs. $105.8 million | | Total Loans | $1.5 billion | +13% | | Interest Income | $50.5 million | +15% | | Average Interest Rate | 15.01% | vs. 14.80% | | 90+ Days Past Due | 0.48% of gross loans | Unchanged | Home Improvement Lending Segment (Q1 2025) | Metric | Value | YoY Comparison | | :--- | :--- | :--- | | Originations | $48.8 million | vs. $51.6 million | | Total Loans | $812.4 million | +8% | | Interest Income | $19.8 million | +13% | | Average Interest Rate | 9.83% | vs. 9.60% | | 90+ Days Past Due | 0.19% of gross loans | vs. 0.18% | - Commercial loans increased to **$116.1 million** from **$106.6 million** a year ago, with an average interest rate of **13.14%**[10](index=10&type=chunk) - The taxi medallion business continues to be wound down, with net assets declining **37%** YoY to **$6.8 million**, representing less than **0.5%** of the Company's total assets[10](index=10&type=chunk) [Capital Allocation](index=2&type=section&id=Capital%20Allocation) The company demonstrated commitment to shareholder returns by increasing its quarterly dividend and repurchasing common stock - The Board of Directors increased the quarterly cash dividend to **$0.12 per share**, payable on May 30, 2025[5](index=5&type=chunk)[8](index=8&type=chunk) - In Q1 2025, the Company repurchased **60,185 shares** of common stock for **$0.5 million**, at an average price of **$8.83 per share**[10](index=10&type=chunk) - As of March 31, 2025, **$14.9 million** remained available under the company's **$40 million** stock repurchase program[10](index=10&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $2.85 billion, with net loans receivable and total equity increasing year-over-year Balance Sheet Highlights | Account | March 31, 2025 ($ thousands) | December 31, 2024 ($ thousands) | March 31, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | | Total Assets | $2,847,738 | $2,868,606 | $2,602,388 | | Net Loans Receivable | $2,261,334 | $2,265,428 | $2,144,599 | | Total Liabilities | $2,398,726 | $2,429,648 | $2,200,938 | | Total Equity | $449,012 | $438,958 | $417,824 | | Book Value Per Share | $16.36 | $16.00 | $14.93 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, net interest income grew 7% YoY to $51.4 million, and net income rose 20% to $12.0 million, boosted by other income Statement of Operations Highlights | Account | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | | :--- | :--- | :--- | | Net Interest Income | $51,412 | $47,917 | | Provision for Credit Losses | $22,014 | $17,201 | | Total Other Income, net | $11,599 | $5,403 | | Total Other Expenses | $20,758 | $18,225 | | Net Income Attributable to MFIN | $12,014 | $10,024 | | Diluted Net Income Per Share | $0.50 | $0.42 | [Corporate Information](index=3&type=section&id=Corporate%20Information) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) The company will host a conference call and webcast on May 1, 2025, at 9:00 a.m. ET to discuss Q1 financial results Conference Call Details | Item | Detail | | :--- | :--- | | Date | Thursday, May 1, 2025 | | Time | 9:00 a.m. Eastern time | | U.S. Dial-in | (833) 816-1412 | | International Dial-in | (412) 317-0504 | | Webcast | Link available on company's IR website |

Core Viewpoint - Medallion Bank reported strong performance in Q1 2025, with net income of $15.6 million, an 8% increase from the previous year, despite economic uncertainties affecting demand in recreation and home improvement lending [3]. Financial Performance - Net income for Q1 2025 was $15.6 million, compared to $14.5 million in Q1 2024 [5]. - Net interest income increased to $52.2 million from $48.2 million year-over-year [5]. - The net interest margin slightly decreased to 8.35% from 8.59% in the prior year [5]. - Total provision for credit losses rose to $19.0 million from $17.0 million in the previous year [5]. - Annualized net charge-offs were 3.41% of average loans outstanding, up from 3.38% in the prior year [5]. - Total loan portfolio grew by 6% to $2.2 billion as of March 31, 2025 [5]. - Total assets were reported at $2.5 billion with a Tier 1 leverage ratio of 16.0% [5]. Lending Segments - The recreation loan portfolio grew by 5% to $1.432 billion, while loan originations decreased to $86.8 million from $105.8 million year-over-year [6]. - Delinquencies for recreation loans increased to $68.2 million (4.76%) from $55.5 million (4.06%) in the prior year [6]. - The home improvement loan portfolio grew by 8% to $812.4 million, with loan originations at $48.8 million, down from $51.6 million [6]. - Delinquencies for home improvement loans rose to $8.3 million (1.02%) from $6.5 million (0.87%) year-over-year [6]. Strategic Initiatives - The bank completed an initial sale of $53 million in recreation loans at a premium to par value, indicating a proactive approach to managing its loan portfolio [3]. - The bank continues to monitor the market for potential loan sale opportunities [3]. Preferred Stock Dividend - The Board of Directors declared a quarterly cash dividend of $0.67982 per share on Series F Preferred Stock, with a dividend rate of 10.75761%, payable on July 1, 2025 [7].

PART I [Our Business](index=5&type=section&id=ITEM%201.%20OUR%20BUSINESS) Medallion Financial Corp. is a specialty finance company with total assets of **$2.9 billion** as of December 31, 2024, focusing on consumer and commercial lending through diversified segments and strategic partnerships - The company's strategic focus is on growing its consumer finance and commercial lending businesses, with total assets reaching **$2.9 billion** at the end of 2024, up from **$2.6 billion** in 2023[11](index=11&type=chunk) Net Loans Receivable by Segment (December 31, 2024) | Loan Segment | Net Loans (in thousands) | Percentage of Total | | :--- | :--- | :--- | | Recreation | $1,351,301 | 56.4% | | Home improvement | $806,675 | 33.7% | | Commercial | $106,083 | 4.4% | | Taxi medallion | $1,369 | 0.1% | | **Total Loans Held for Investment** | **$2,265,428** | **94.6%** | | Loans Held for Sale | $128,226 | 5.4% | | **Total Net Loans** | **$2,393,654** | **100.0%** | [Lending Segments](index=6&type=section&id=Lending%20Segments) The company's lending activities are diversified across recreation, home improvement, and commercial segments, with recreation being the largest and a growing fintech partnership program - Recreation lending is the company's most significant segment, accounting for **57%** of loans receivable and **67%** of interest income for the year ended December 31, 2024[15](index=15&type=chunk) - Home improvement loans, offered through contractors and FSPs, comprised **33%** of the company's loans receivable as of December 31, 2024[18](index=18&type=chunk) - The strategic partnership program with fintech companies originated **$203.6 million** in loans in 2024, a significant increase from **$118.3 million** in 2023[25](index=25&type=chunk) [Our Strategy](index=8&type=section&id=Our%20Strategy) The company's core strategy focuses on dominating profitable niche markets by leveraging relationships, disciplined underwriting, experienced management, and expanding fintech partnerships - A key strategy is to capitalize on relationships with dealers, contractors, and Financial Service Providers (FSPs), which generated all consumer loans retained in the portfolio in 2024[28](index=28&type=chunk) - The company emphasizes disciplined underwriting and rigorous portfolio monitoring, imposing more restrictive standards to mitigate concentration risks[30](index=30&type=chunk) - Expansion of the strategic partnership program is a core growth driver, with two new partnerships launched in 2024 and others being evaluated[32](index=32&type=chunk) [Sources of Funds](index=10&type=section&id=Sources%20of%20Funds) Operations are primarily funded by brokered certificates of deposit, supplemented by privately placed notes and SBA debentures, with a strategy to optimize debt structure Sources of Funds (December 31, 2024) | Source | Amount (in thousands) | Avg. Interest Rate | | :--- | :--- | :--- | | Cash, cash equivalents, and federal funds sold | $169,572 | N/A | | Brokered certificates of deposit & other funds | $2,094,663 | 3.71% | | Privately placed notes | $146,500 | 8.12% | | SBA debentures and borrowings | $70,250 | 3.53% | | Trust preferred securities | $33,000 | 6.83% | | Federal reserve and other borrowings | $35,000 | 4.50% | | **Total Debt Outstanding** | **$2,379,413** | N/A | [Human Capital Resources](index=11&type=section&id=Human%20Capital%20Resources) As of December 31, 2024, the company employed 174 people, primarily at Medallion Bank, emphasizing equal opportunity and comprehensive employee incentives - Total employees increased to **174** at year-end 2024 from **169** at year-end 2023, with the majority (**135**) employed at Medallion Bank[45](index=45&type=chunk) [Supervision and Regulation](index=11&type=section&id=SUPERVISION%20AND%20REGULATION) The company operates in a highly regulated environment, with Medallion Bank subject to extensive federal and state banking laws, and SBIC subsidiaries regulated by the SBA - Medallion Bank is subject to extensive regulation by the FDIC and the Utah Department of Financial Institutions, intended primarily for the protection of depositors[51](index=51&type=chunk)[52](index=52&type=chunk) - As a condition of its FDIC insurance, Medallion Bank must maintain a **15%** Tier 1 leverage ratio, which it met as of year-end 2024[63](index=63&type=chunk) - The company's subsidiaries, Medallion Funding and Medallion Capital, are licensed and regulated by the Small Business Administration (SBA) as Small Business Investment Companies (SBICs)[90](index=90&type=chunk) [Risk Factors](index=23&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant risks from its concentrated consumer lending portfolio, funding dependence on brokered deposits, pending SEC litigation, and intense market competition [Risks Related to Our Loan Portfolios and Business](index=23&type=section&id=Risks%20Related%20to%20Our%20Loan%20Portfolios%20and%20Business) The business is highly susceptible to economic downturns due to its concentrated consumer lending, particularly in non-prime recreation loans, and relies on limited third-party relationships for originations - The business is heavily concentrated in consumer lending, making it highly sensitive to macroeconomic conditions like recession risk, inflation, and interest rate changes that impact consumer spending[107](index=107&type=chunk)[108](index=108&type=chunk) - As of December 31, 2024, **37%** of recreation loans originated were non-prime, which are expected to have higher default rates than prime loans[115](index=115&type=chunk) - The company's ability to originate loans depends on relationships with a limited number of dealers and FSPs; in 2024, the top ten relationships accounted for **48%** of home improvement and **38%** of recreation loan originations[122](index=122&type=chunk) [Financing and Related Risks](index=27&type=section&id=Financing%20and%20Related%20Risks) Key financial risks include debt covenant compliance, the critical reliance on brokered deposits for Medallion Bank's funding, and the holding company's dependence on subsidiary dividends - Medallion Bank relies heavily on brokered deposits for funding, and its ability to accept them is contingent on maintaining a "well-capitalized" status under FDIC regulations; loss of this status would materially impair its funding capabilities[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - As a holding company, it depends on dividends from subsidiaries to fund its operations and debt payments; in 2024, it received **$24.0 million** in dividends from Medallion Bank and **$1.6 million** from Medallion Capital[136](index=136&type=chunk) [Legal and Regulatory Risks](index=28&type=section&id=Legal%20and%20Regulatory%20Risks) Significant legal and regulatory risks include pending SEC litigation, the highly regulated banking environment, and compliance with various financial protection and anti-money laundering laws - The company faces pending litigation with the SEC regarding alleged violations from 2015-2017; an agreement in principle to settle was reached in December 2024, but it remains subject to approval by SEC Commissioners and the court[137](index=137&type=chunk)[138](index=138&type=chunk) - The banking industry is highly regulated, and failure to comply with laws from the FDIC and Utah DFI could result in sanctions, civil money penalties, or reputational damage[144](index=144&type=chunk) - The company's SBIC subsidiaries are subject to SBA regulations, and non-compliance could lead to penalties, including loss of access to SBA debentures[153](index=153&type=chunk)[154](index=154&type=chunk) [Risk Relating to Our Growth and Operations](index=34&type=section&id=Risk%20Relating%20to%20Our%20Growth%20and%20Operations) Growth and operations face risks from intense market competition, new uncertainties from strategic partnerships, cybersecurity threats, and reliance on key senior management and third-party vendors - The consumer lending market is highly competitive, with rivals including banks, credit unions, and finance companies that may have greater resources or less restrictive regulations[158](index=158&type=chunk) - The Strategic Partnership Program with fintech companies exposes the company to new and potentially uncertain legal and regulatory risks, including "true lender" challenges[159](index=159&type=chunk) - The business is vulnerable to security breaches and cyber-attacks, which could compromise sensitive data and lead to liability, regulatory penalties, and reputational damage[166](index=166&type=chunk) [Unresolved Staff Comments](index=43&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports that there are no unresolved staff comments - None[198](index=198&type=chunk) [Cybersecurity](index=43&type=section&id=ITEM%201C.%20CYBERSECURITY) Cybersecurity risks are managed through an enterprise risk management program, overseen by the Audit Committee, with subsidiary programs guided by the NIST framework - Cybersecurity risk is managed as part of the enterprise risk management program, overseen by the Audit Committee, which receives quarterly reports from the Information Security Director[199](index=199&type=chunk)[202](index=202&type=chunk) - The company's cybersecurity programs are guided by the National Institute of Standards and Technology (NIST) Cybersecurity Framework and include safeguards like employee training, incident response programs, and third-party risk management[200](index=200&type=chunk) [Properties](index=45&type=section&id=ITEM%202.%20PROPERTIES) The company leases all its primary office spaces in New York City, Salt Lake City, and Excelsior, Minnesota, owning no real property other than foreclosed assets - The company leases all its primary office spaces, with key locations in New York, NY; Salt Lake City, UT; and Excelsior, MN[205](index=205&type=chunk) [Legal Proceedings](index=45&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company refers to Note 10 of its consolidated financial statements for details regarding legal proceedings, including the pending SEC litigation - Details of legal proceedings, including the pending SEC litigation, are provided in Note 10 to the consolidated financial statements[206](index=206&type=chunk) [Mine Safety Disclosures](index=45&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - Not applicable[207](index=207&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=46&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT'S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's common stock trades on NASDAQ, paid increased quarterly dividends in 2024, and repurchased shares under its authorized program - The company reinstated its quarterly dividend in March 2022 and increased it from **$0.10** to **$0.11** per share in October 2024[210](index=210&type=chunk) - During FY2024, the company repurchased **570,404** shares of its common stock at an aggregate cost of **$4.6 million**; as of year-end, **$15.4 million** remained available under the repurchase authorization[212](index=212&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=ITEM%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) In FY2024, total assets grew to **$2.9 billion**, but net income declined to **$35.9 million** due to higher credit loss provisions and increased interest expenses, compressing the net interest margin Key Financial Highlights (FY2024 vs. FY2023) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Total Assets | $2.9 billion | $2.6 billion | | Net Income (attributable) | $35.9 million | $55.1 million | | Diluted EPS | $1.52 | $2.37 | | Net Interest Income | $202.5 million | $188.1 million | | Provision for Credit Losses | $76.5 million | $37.8 million | | Net Interest Margin (gross) | 8.05% | 8.38% | - The increase in the allowance for credit losses to **$97.4 million** was primarily driven by rising loss rates and elevated delinquencies in the recreation loan portfolio[226](index=226&type=chunk)[250](index=250&type=chunk) [Critical Accounting Estimates](index=48&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) Critical accounting estimates involve significant judgment for the allowance for credit losses and goodwill valuation, both assessed using historical data, economic factors, and expert analysis - The allowance for credit losses is a critical estimate, based on historical data, economic conditions, and qualitative factors; a **50** basis point change in the qualitative loss factor would change the recreation and home improvement reserves by **$7.1 million** and **$4.1 million**, respectively[224](index=224&type=chunk)[225](index=225&type=chunk) - Goodwill of **$150.8 million** was assessed for impairment at year-end 2024 by a third-party expert using a discounted cash flow analysis (**50%** weight) and market approaches (**50%** weight); the assessment concluded that the fair value of the lending segments exceeded their carrying value[230](index=230&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk) [Loans](index=54&type=section&id=LOANS) The total gross loan portfolio grew to **$2.49 billion** in 2024, driven by **$1.04 billion** in new originations primarily in recreation and home improvement segments, consisting mostly of fixed-rate loans Loan Portfolio Activity (Year Ended Dec 31, 2024) | (in thousands) | Recreation | Home Improvement | Commercial | Strategic Partnership | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Gross Loans (Start) | $1,336,226 | $760,617 | $114,827 | $553 | $2,215,886 | | Loan Originations | $526,634 | $298,642 | $14,300 | $203,627 | $1,043,453 | | Gross Loans (End) | $1,543,243 | $827,211 | $111,273 | $7,386 | $2,491,022 | [Allowance for Credit Losses](index=55&type=section&id=ALLOWANCE%20FOR%20CREDIT%20LOSSES) The allowance for credit losses increased to **$97.4 million** at year-end 2024, driven by a **$76.5 million** provision and higher expected losses, particularly in the recreation loan portfolio Allowance for Credit Losses Activity (Year Ended Dec 31, 2024) | (in thousands) | Recreation | Home Improvement | Commercial | Taxi Medallion | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at Dec 31, 2023 | $57,532 | $21,019 | $4,148 | $1,536 | $84,235 | | Provision (Benefit) | $67,995 | $13,458 | $1,084 | ($6,035) | $76,502 | | Net Charge-offs | ($54,425) | ($13,941) | ($42) | ($5,039) | ($63,369) | | Balance at Dec 31, 2024 | $71,102 | $20,536 | $5,190 | $540 | $97,368 | - Loans **90** days or more past due increased to **$27.7 million** (**1.1%** of total loans) at the end of 2024, up from **$16.8 million** (**0.8%** of total loans) at the end of 2023[255](index=255&type=chunk) [Segment Results](index=57&type=section&id=SEGMENT%20RESULTS) In 2024, Recreation Lending remained the primary earnings driver despite a higher credit loss provision, while Home Improvement and Commercial Lending segments saw increased net income Net Income by Segment (FY2024 vs. FY2023) | Segment (in thousands) | Net Income 2024 | Net Income 2023 | | :--- | :--- | :--- | | Recreation Lending | $32,460 | $42,281 | | Home Improvement Lending | $12,759 | $7,273 | | Commercial Lending | $7,827 | $6,791 | | Taxi Medallion Lending | $1,996 | $17,011 | | Corporate and Other Investments | ($13,117) | ($12,230) | [Consolidated Results of Operations](index=63&type=section&id=CONSOLIDATED%20RESULTS%20OF%20OPERATIONS) Net income attributable to shareholders decreased to **$35.9 million** in FY2024, primarily due to a doubling of the provision for credit losses and a **40%** increase in interest expense Consolidated Statement of Operations Summary | (in millions) | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net Interest Income | $202.5 | $188.1 | | Provision for Credit Losses | $76.5 | $37.8 | | Net Interest Income after Provision | $126.0 | $150.3 | | Total Other Income, net | $11.3 | $11.3 | | Total Other Expenses | $74.4 | $75.6 | | Net Income (attributable) | $35.9 | $55.1 | [Asset/Liability Management](index=64&type=section&id=ASSET%2FLIABILITY%20MANAGEMENT) The company manages interest rate risk from fixed-rate assets and variable-rate liabilities, with a negative **$0.6 billion** one-year interest rate gap, and actively manages capital through debt issuances - The one-year cumulative interest rate sensitivity gap was negative **$0.6 billion**, or **22%** of interest rate sensitive assets, as of December 31, 2024[313](index=313&type=chunk) - A hypothetical immediate **1%** increase in interest rates would increase net income by **$2.2 million** on an annualized basis as of December 31, 2024[333](index=333&type=chunk) - The company actively manages its capital resources, completing a **$5.0 million** private placement in August 2024 and amending notes in June 2024 to increase principal and extend maturity[316](index=316&type=chunk)[317](index=317&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=70&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks are interest rate fluctuations and portfolio valuations, with a hypothetical **1%** rate increase estimated to increase net income by **$2.2 million** annually - The principal market risks are fluctuations in interest rates and portfolio valuations[343](index=343&type=chunk) - A hypothetical immediate **1%** increase in interest rates would result in an estimated increase to net income of **$2.2 million** on an annualized basis as of December 31, 2024[344](index=344&type=chunk) [Financial Statements and Supplementary Data](index=70&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section incorporates by reference the company's audited consolidated financial statements and accompanying notes for the fiscal year ended December 31, 2024 - This section contains the audited consolidated financial statements and supplementary data for Medallion Financial Corp. for the fiscal year ended December 31, 2024[345](index=345&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=70&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reported no changes in or disagreements with its accountants on accounting and financial disclosure - None[346](index=346&type=chunk) [Controls and Procedures](index=70&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management and independent auditors concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2024 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2024[347](index=347&type=chunk) - Management assessed internal control over financial reporting as effective as of December 31, 2024, based on the COSO framework[351](index=351&type=chunk) - The independent auditor, Plante & Moran, PLLC, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2024[357](index=357&type=chunk) [Other Information](index=73&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) No director or officer trading plans under Rule 10b5-1 were adopted, modified, or terminated during the fourth quarter of 2024 - No director or officer trading plans under Rule 10b5-1 were adopted, modified, or terminated during the fourth quarter of 2024[364](index=364&type=chunk) PART III [Directors, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=73&type=section&id=ITEM%2010%2C%2011%2C%2012%2C%2013%2C%2014) Information for Items 10 through 14 is incorporated by reference from the company's forthcoming 2025 Definitive Proxy Statement - Information required for Items 10, 11, 12, 13, and 14 is incorporated by reference from the company's forthcoming 2025 Definitive Proxy Statement[366](index=366&type=chunk)[367](index=367&type=chunk)[368](index=368&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=74&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists the financial statements, schedules, and various exhibits filed as part of the Form 10-K, including corporate documents and certifications - This section contains the index to financial statements and a list of all exhibits filed with the 10-K report[369](index=369&type=chunk)

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) [Executive Commentary](index=1&type=section&id=Executive%20Commentary) Medallion's President highlights record annual loan originations over $1 billion and strong year-end financial performance - For the first time in company history, annual loan originations exceeded **$1 billion**, with over half being high-yielding recreation loans[5](index=5&type=chunk) - The commercial lending group, Medallion Capital, generated net gains of **$3.8 million** in Q4 and **$6.9 million** for the full year from exiting a portfolio investment[6](index=6&type=chunk) - An agreement in principle was reached regarding the SEC matter, resulting in a **$3.0 million** charge for the settlement and a **$5.5 million** benefit from insurance coverage for legal costs[7](index=7&type=chunk) - The company achieved record year-end figures for total interest income, net interest income, assets, strategic partnership loan volume, and total equity[8](index=8&type=chunk) [2024 Fourth Quarter Highlights](index=1&type=section&id=2024%20Fourth%20Quarter%20Highlights) Q4 2024 net income decreased to $10.1 million due to lower taxi medallion recoveries, despite net interest income growth Q4 2024 vs Q4 2023 Financial Performance (in millions) | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $10.1M | $14.3M | -29.4% | | Diluted EPS | $0.43 | $0.60 | -28.3% | | Net Interest Income | $52.0M | $49.0M | +6.1% | | Loan Originations | $285.7M | $169.1M | +69.0% | | Credit Loss Provision | $20.6M | $10.8M | +90.8% | | Taxi Medallion Recoveries | $1.3M | $12.5M | -89.6% | - The Board of Directors approved a **10% increase** in the quarterly dividend to **$0.11 per share**[8](index=8&type=chunk) [2024 Full-Year Highlights](index=1&type=section&id=2024%20Full-Year%20Highlights) Full-year 2024 net income decreased to $35.9 million due to lower taxi medallion recoveries, despite record net interest income Full-Year 2024 vs 2023 Financial Performance (in millions/billions) | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $35.9M | $55.1M | -34.8% | | Diluted EPS | $1.52 | $2.37 | -35.9% | | Net Interest Income | $202.5M | $188.1M | +7.7% | | Loan Originations | $1.0B | $960.0M | +4.2% | | Credit Loss Provision | $76.5M | $37.8M | +102.4% | | Total Assets | $2.9B | $2.6B (Dec 31, 2023) | +11% | - The company repurchased **570,404 shares** of common stock for a total of **$4.6 million** during the year[8](index=8&type=chunk) [Business Segment & Capital Allocation](index=3&type=section&id=Business%20Segment%20%26%20Capital%20Allocation) [Business Segment Highlights](index=3&type=section&id=Business%20Segment%20Highlights) Recreation and Home Improvement lending segments show strong portfolio growth, while the Taxi Medallion segment significantly reduced [Recreation Lending Segment](index=3&type=section&id=Recreation%20Lending%20Segment) Recreation Lending reported strong Q4 originations, 15% portfolio growth to $1.5 billion, and stable asset quality Recreation Lending Segment Q4 2024 Metrics (in millions/billions) | Metric | Q4 2024 | YoY Change | | :--- | :--- | :--- | | Originations | $72.2M | +15.2% | | Total Portfolio | $1.5B | +15.0% | | Average Interest Rate | 15.07% | +28 bps | | 90+ Days Past Due | 0.67% | -3 bps | - In December 2024, the company signed a letter of intent to sell up to **$121 million** of recreation loans at a premium to par value[13](index=13&type=chunk) [Home Improvement Lending Segment](index=3&type=section&id=Home%20Improvement%20Lending%20Segment) Home Improvement Lending saw Q4 originations of $82.5 million, 9% portfolio growth to $827.2 million, and improved credit quality Home Improvement Lending Segment Q4 2024 Metrics (in millions) | Metric | Q4 2024 | YoY Change | | :--- | :--- | :--- | | Originations | $82.5M | +25.0% | | Total Portfolio | $827.2M | +8.8% | | Average Interest Rate | 9.81% | +30 bps | | 90+ Days Past Due | 0.17% | -3 bps | [Commercial Lending Segment](index=3&type=section&id=Commercial%20Lending%20Segment) Commercial Lending portfolio remained stable at $111.3 million with a slight increase in average interest rate to 12.97% - Commercial loans totaled **$111.3 million** at year-end 2024, with an average interest rate of **12.97%**[13](index=13&type=chunk) [Taxi Medallion Lending Segment](index=3&type=section&id=Taxi%20Medallion%20Lending%20Segment) The Taxi Medallion portfolio continues to wind down, with net assets reduced by 37% to $7.7 million - Collected **$2.6 million** of cash on taxi medallion-related assets during Q4 2024[13](index=13&type=chunk) - Total net taxi medallion assets were reduced by **37%** year-over-year to **$7.7 million**, representing less than **0.5%** of total company assets[13](index=13&type=chunk) [Capital Allocation](index=3&type=section&id=Capital%20Allocation) Medallion Financial actively returns capital to shareholders through increased dividends and a $4.6 million stock repurchase program [Quarterly Dividend](index=3&type=section&id=Quarterly%20Dividend) The Board declared a quarterly cash dividend of $0.11 per share, a 10% increase, payable on March 31, 2025 - The Board declared a quarterly dividend of **$0.11 per share**, payable on March 31, 2025[11](index=11&type=chunk) [Stock Repurchase Plan](index=3&type=section&id=Stock%20Repurchase%20Plan) In 2024, the company repurchased 570,404 shares for $4.6 million, with $15.4 million remaining under the program - In 2024, the Company purchased **570,404 shares** for **$4.6 million**, with **$15.4 million** remaining under the repurchase program[12](index=12&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased 11% to $2.87 billion, driven by loan growth and funded by a 12% rise in deposits, with total equity also increasing Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $2,868,606 | $2,587,827 | +10.8% | | Net Loans Receivable | $2,265,428 | $2,131,651 | +6.3% | | Total Liabilities | $2,429,648 | $2,176,053 | +11.7% | | Deposits | $2,090,071 | $1,866,657 | +11.9% | | Total Equity | $438,958 | $411,774 | +6.6% | | Book Value Per Share | $16.00 | $14.63 | +9.4% | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Full-year 2024 net interest income grew 8% to $202.5 million, but net income declined to $35.9 million due to higher credit loss provisions Consolidated Statement of Operations Highlights (in thousands) | Account | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $202,535 | $188,094 | +7.7% | | Provision for Credit Losses | $76,502 | $37,810 | +102.3% | | Total Other Income, net | $11,330 | $11,320 | +0.1% | | Total Other Expenses | $74,427 | $75,568 | -1.5% | | Net Income Attributable to MFIN | $35,878 | $55,079 | -34.9% | | Diluted EPS | $1.52 | $2.37 | -35.9% | [Conference Call & Company Information](index=4&type=section&id=Conference%20Call%20%26%20Company%20Information) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) The company will host a conference call on March 5, 2025, at 9:00 a.m. ET to discuss Q4 and full-year 2024 results Earnings Call Details | Item | Detail | | :--- | :--- | | Date | Wednesday, March 5, 2025 | | Time | 9:00 a.m. Eastern time | | U.S. Dial-in | (833) 816-1412 | | International Dial-in | (412) 317-0504 | [About Medallion Financial Corp.](index=4&type=section&id=About%20Medallion%20Financial%20Corp.) Medallion Financial Corp. is a specialty finance company focusing on consumer and mezzanine loans in recreation and home improvement - Medallion Financial Corp. originates and services consumer and mezzanine loans, with a focus on the recreation and home improvement industries[17](index=17&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to risks and uncertainties, including the pending SEC litigation settlement approval - The press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ significantly. The settlement of the pending SEC litigation remains subject to SEC and court approval[18](index=18&type=chunk)