```markdown PART I – FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company's financial statements for the period ended September 30, 2024, show significant growth in total assets, primarily driven by an increase in the loan portfolio, while net income decreased year-over-year due to higher provisions for credit losses and increased interest expenses [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets increased to **$2.88 billion** from **$2.59 billion** at year-end 2023, driven by a **12.1%** growth in net loans receivable, primarily funded by a **12.9%** increase in deposits, with total equity rising to **$431.2 million** and book value per share increasing to **$15.70** from **$14.63** Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,880,052** | **$2,587,827** | | Net Loans Receivable | $2,388,761 | $2,131,651 | | **Total Liabilities** | **$2,448,876** | **$2,176,053** | | Deposits | $2,108,132 | $1,866,657 | | **Total Equity** | **$431,176** | **$411,774** | | Book Value per Share | $15.70 | $14.63 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the third quarter of 2024, net income attributable to the company was **$8.6 million** (**$0.37**/share), a decrease from **$11.2 million** (**$0.48**/share) in Q3 2023, with the nine-month net income at **$25.7 million** (**$1.09**/share), down from **$40.8 million** (**$1.77**/share) year-over-year, primarily due to a significant increase in the provision for credit losses and higher interest expenses Key Operating Results (in thousands, except per share data) | Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $52,737 | $48,784 | $150,522 | $139,076 | | Provision for Credit Losses | $20,151 | $14,532 | $55,929 | $27,045 | | **Net Income Attributable to MFIN** | **$8,611** | **$11,230** | **$25,736** | **$40,761** | | Diluted EPS | $0.37 | $0.48 | $1.09 | $1.77 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash provided by operating activities was **$87.1 million**, with **$311.1 million** used in investing activities primarily for loan originations, and **$262.0 million** provided by financing activities, resulting in a net increase in cash and cash equivalents of **$38.1 million** Nine-Month Cash Flow Summary (in thousands) | Cash Flow Category | 9M 2024 | 9M 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $87,148 | $94,141 | | Net Cash used for Investing Activities | ($311,086) | ($328,226) | | Net Cash from Financing Activities | $262,022 | $256,129 | | **Net Increase in Cash** | **$38,084** | **$22,044** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies and provide breakdowns of key financial statement items, including loan portfolio composition, debt structure, segment performance, and ongoing SEC litigation, with the adoption of the CECL accounting standard on January 1, 2023, resulting in a **$13.7 million** increase to the allowance for credit losses - The company's primary operating subsidiary is Medallion Bank, an FDIC-insured industrial bank that originates consumer loans and raises deposits[34](index=34&type=chunk) - Upon adopting the CECL standard (ASC 326) on January 1, **2023**, the company increased its allowance for credit losses by **$13.7 million**, with a corresponding **$9.9 million** net-of-tax reduction to retained earnings[57](index=57&type=chunk) [Management's Discussion and Analysis (MD&A)](index=36&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes the year-over-year decrease in net income to higher provisions for credit losses driven by loan growth and increased charge-offs, alongside rising interest expenses that have compressed net interest margins, while the company's strategic focus remains on growing its consumer and commercial loan portfolios, funded primarily by bank certificates of deposit, and is considering strategic alternatives for Medallion Bank - The company's strategic focus is on growing its consumer finance (recreation and home improvement loans) and commercial lending businesses[217](index=217&type=chunk) - Net interest margin has tightened as the cost of funds, particularly deposits, has risen faster than the yield on the fixed-rate loan portfolio can be increased through new originations[312](index=312&type=chunk) - The company is considering various strategic alternatives for Medallion Bank, which could include an IPO, sale, or spin-off[222](index=222&type=chunk) [Loan Portfolio and Credit Quality](index=45&type=section&id=Loan%20Portfolio%20and%20Credit%20Quality) The total loan portfolio grew to **$2.5 billion** as of September 30, 2024, a **12%** increase from year-end 2023, led by the recreation segment, with the provision for credit losses increasing significantly to **$55.9 million** for the first nine months of 2024 from **$27.0 million** in the prior-year period due to loan growth, higher charge-offs, and lower recoveries, while the overall allowance for credit losses stood at **3.88%** of total loans Loan Portfolio Composition (in millions) | Loan Segment | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Recreation | $1,554.6 | $1,336.2 | | Home Improvement | $814.1 | $760.6 | | Commercial | $110.1 | $114.8 | | **Total Gross Loans** | **$2,485.3** | **$2,215.9** | Allowance for Credit Losses Activity (9M 2024 vs 9M 2023, in millions) | Metric | 9M 2024 | 9M 2023 | | :--- | :--- | :--- | | Provision for Credit Losses | $55.9 | $27.0 | | Net Charge-offs | $43.6 | $25.5 | | **Ending Allowance** | **$96.5** | **$79.1** | - Loans **90+** days past due as a percentage of the total loan portfolio decreased slightly to **0.7%** at Q3 2024 from **0.8%** at year-end 2023[265](index=265&type=chunk) [Segment Results](index=49&type=section&id=Segment%20Results) The Recreation and Home Improvement segments drove loan growth, with portfolios increasing **16%** and **7%** respectively in the first nine months of 2024, though both saw lower net income due to higher provisions for credit losses, while the Commercial Lending segment's net income grew, and the Taxi Medallion segment continued to wind down, contributing income through recoveries at a lower level than the prior year Net Income (Loss) by Segment (9M 2024 vs 9M 2023, in millions) | Segment | 9M 2024 Net Income | 9M 2023 Net Income | | :--- | :--- | :--- | | Recreation Lending | $19.6 | $33.0 | | Home Improvement Lending | $7.5 | $6.6 | | Commercial Lending | $4.7 | $4.0 | | Taxi Medallion Lending | $1.7 | $11.1 | | Corporate and Other | ($3.2) | ($9.5) | - Recreation loan originations increased to **$454.4 million** in 9M 2024 from **$384.3 million** in 9M 2023, despite more restrictive underwriting[278](index=278&type=chunk) - Home Improvement loan originations decreased to **$216.1 million** in 9M 2024 from **$291.3 million** in 9M 2023, partly due to restrictive underwriting and efforts to mitigate concentration risk[287](index=287&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary sources of liquidity are brokered certificates of deposit, SBA debentures, and private debt placements, with recent capital raises including a new **$5.0 million** note issuance and an increase to a prior note placement, while the board increased the quarterly dividend to **$0.11** per share and continued its stock repurchase program, buying back **$1.0 million** in shares during Q3 2024 - Primary funding sources are brokered CDs (**$2.1B**), privately placed notes (**$146.5M**), and SBA debentures (**$70.3M**) as of Sep 30, 2024[336](index=336&type=chunk) - Recent financing activities in **2024** include a **$5.0M** private placement of **8.625%** senior notes and an amendment increasing a prior placement by **$5.0M** to **$17.5M**[326](index=326&type=chunk)[327](index=327&type=chunk) - The quarterly dividend was increased to **$0.11** per share in October **2024**, and the company repurchased **122,344 shares** for **$1.0 million** in Q3 **2024** under its authorized plan[349](index=349&type=chunk)[350](index=350&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company states there have been no material changes in its market risk disclosures since its 2023 Annual Report on Form 10-K - There has been no material change in disclosure regarding quantitative and qualitative disclosures about market risk since the Annual Report on Form 10-K for the year ended December **31**, **2023**[351](index=351&type=chunk) [Controls and Procedures](index=58&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2024, and confirmed that no changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting - The CEO and CFO evaluated and concluded that the company's disclosure controls and procedures are effective as of September **30**, **2024**[352](index=352&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended September **30**, **2024**, that have materially affected or are likely to materially affect internal controls[353](index=353&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=59&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in a civil complaint filed by the SEC in December 2021 against the company and its President, alleging violations of federal securities laws between 2015 and 2017, with the court largely denying the company's motion to dismiss on September 18, 2024, and the company intends to defend itself vigorously but acknowledges that an adverse outcome could be material - The SEC filed a civil complaint against the Company and its President in December **2021** regarding issues from **2015-2017** related to anti-fraud, books and records, internal controls, and anti-touting provisions[179](index=179&type=chunk) - On September **18**, **2024**, the Court largely denied the Company's motion to dismiss the amended complaint[179](index=179&type=chunk) [Risk Factors](index=59&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company reports no material changes to its risk factors from those disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - 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**, **2023**[356](index=356&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Under its stock repurchase program, the company repurchased **122,344 shares** of its common stock during the third quarter of 2024 at an average price of **$7.89** per share, for a total cost of approximately **$1.0 million**, with approximately **$15.4 million** remaining authorized for future repurchases as of September 30, 2024 Q3 2024 Stock Repurchase Activity | Period | Total Shares Purchased | Average Price Paid | Total Amount Paid | | :--- | :--- | :--- | :--- | | July 2024 | 0 | N/A | $0 | | August 2024 | 122,344 | $7.89 | $965,530 | | September 2024 | 0 | N/A | $0 | | **Total Q3** | **122,344** | **$7.89** | **$965,530** | - As of September **30**, **2024**, up to **$15,392,299** of shares remained authorized for repurchase under the company's stock repurchase program[357](index=357&type=chunk) [Other Information](index=59&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The company disclosed that none of its directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the third quarter of 2024 - No directors or officers adopted, modified, or terminated a Rule **10b5-1** or non-Rule **10b5-1** trading arrangement during the fiscal quarter ended September **30**, **2024**[359](index=359&type=chunk) [Exhibits](index=60&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including amended bylaws, an amendment to a cooperation agreement, officer certifications (pursuant to Sarbanes-Oxley Sections 302 and 906), and XBRL data files ```

[Financial Highlights and Executive Commentary](index=1&type=section&id=2024%20Third%20Quarter%20Highlights) Medallion Financial reported Q3 2024 net income of $8.6 million, achieving record highs in total assets, interest income, and net interest income, driven by consumer lending growth Q3 2024 Key Financial Metrics vs. Q3 2023 | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $8.6 million | $11.2 million | -23.2% | | Diluted EPS | $0.37 | $0.48 | -22.9% | | Net Interest Income | $52.7 million | $48.8 million | +8.0% | | Loan Originations | $275.6 million | $217.4 million | +26.8% | | Total Loans | $2.5 billion | $2.2 billion | +13.0% | | Provision for Credit Losses | $20.2 million | $14.5 million | +39.3% | - The company achieved record highs for **total interest income ($76.4 million)**, **net interest income ($52.7 million)**, and **total assets ($2.9 billion)**[5](index=5&type=chunk) - Earnings included an additional **$0.07 per share** in allowance for credit losses tied to the growth in consumer lending segments[3](index=3&type=chunk) - The fintech strategic partnership program at Medallion Bank had its highest volume quarter ever with **$40 million of new loans**, a significant increase from **$24 million in Q2 2024**[5](index=5&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Highlights) Consumer lending segments, particularly recreation and home improvement, drove performance, while the taxi medallion segment continued its strategic wind-down [Recreation Lending Segment](index=2&type=section&id=Recreation%20Lending%20Segment) The largest segment, Recreation Lending, showed strong growth in its loan portfolio and net interest income, despite a slight rise in delinquencies Recreation Lending Segment Performance (as of Sep 30, 2024) | Metric | Q3 2024 | YoY Change | | :--- | :--- | :--- | | Originations | $139.1 million | +50.2% | | Loan Portfolio | $1.6 billion | +15% | | Net Interest Income (Quarter) | $38.9 million | +9% | | Average Interest Rate | 14.92% | +19 bps | | 90+ Days Past Due | 0.50% | +5 bps | [Home Improvement Lending Segment](index=2&type=section&id=Home%20Improvement%20Lending%20Segment) The Home Improvement segment demonstrated solid growth in its loan portfolio and net interest income, maintaining low delinquency rates Home Improvement Lending Segment Performance (as of Sep 30, 2024) | Metric | Q3 2024 | YoY Change | | :--- | :--- | :--- | | Originations | $96.5 million | +21.7% | | Loan Portfolio | $814.1 million | +8% | | Net Interest Income (Quarter) | $12.0 million | +5% | | Average Interest Rate | 9.76% | +38 bps | | 90+ Days Past Due | 0.19% | +6 bps | [Commercial Lending Segment](index=2&type=section&id=Commercial%20Lending%20Segment) The commercial loan portfolio expanded year-over-year, with its average interest rate remaining stable - Commercial loans grew to **$110.1 million**, up from **$100.3 million** a year ago[9](index=9&type=chunk) - The average interest rate on the portfolio was **12.90%**, nearly unchanged from **12.91%** a year ago[9](index=9&type=chunk) [Taxi Medallion Lending Segment](index=2&type=section&id=Taxi%20Medallion%20Lending%20Segment) The company significantly reduced its exposure to taxi medallion assets, which now represent a minimal portion of total assets - Total net taxi medallion assets declined to **$8.8 million**, a **46% reduction** from the prior year[9](index=9&type=chunk) - The company collected **$4.1 million** of cash on taxi medallion-related assets during the third quarter[9](index=9&type=chunk) [Capital Allocation](index=2&type=section&id=Capital%20Allocation) Medallion Financial demonstrated commitment to shareholder returns through increased dividends and active share repurchases [Quarterly Dividend](index=2&type=section&id=Quarterly%20Dividend) The Board of Directors authorized a 10% increase in the quarterly cash dividend to $0.11 per share, payable in November 2024 - The Board of Directors increased the quarterly cash dividend by **10%** to **$0.11 per share**[6](index=6&type=chunk) - The dividend is payable on November 27, 2024, to shareholders of record at the close of business on November 15, 2024[7](index=7&type=chunk) [Stock Repurchase Plan](index=2&type=section&id=Stock%20Repurchase%20Plan) The company repurchased 122,344 shares for $1.0 million during the quarter, with $15.4 million remaining under its $40 million repurchase program - Repurchased **122,344 shares** of common stock at an average cost of **$7.89 per share**, totaling **$1.0 million**[6](index=6&type=chunk)[9](index=9&type=chunk) - As of September 30, 2024, **$15.4 million** remained under the company's **$40 million** share repurchase program[9](index=9&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) Consolidated financial statements show a growing balance sheet driven by loan growth, alongside mixed profitability due to higher credit loss provisions [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet strengthened as of September 30, 2024, with total assets and net loans receivable increasing, leading to higher total equity and book value per share Key Balance Sheet Items (in thousands) | Account | Sep 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | | Total Assets | $2,880,052 | $2,558,627 | | Net Loans Receivable | $2,388,761 | $2,123,905 | | Total Liabilities | $2,448,876 | $2,161,365 | | Total Equity | $431,176 | $397,262 | | Book Value Per Share | $15.70 | $14.06 | [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q3 2024 saw an increase in net interest income, but a higher provision for credit losses and equity investment losses led to a decline in net income Key Income Statement Items - Three Months Ended Sep 30 (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Net Interest Income | $52,737 | $48,784 | | Provision for Credit Losses | $20,151 | $14,532 | | Total Other Income, Net | $587 | $4,306 | | Net Income Attributable to MFIN | $8,611 | $11,230 | | Diluted Net Income Per Share | $0.37 | $0.48 | [Conference Call and Other Information](index=3&type=section&id=Conference%20Call%20Information) A conference call is scheduled for October 30, 2024, to discuss financial results, with webcast availability and standard forward-looking statement disclaimers - A conference call to discuss Q3 results is scheduled for Wednesday, October 30, 2024, at **9:00 a.m. Eastern time**[10](index=10&type=chunk)[15](index=15&type=chunk) - The press release contains forward-looking statements and directs investors to the 'Risk Factors' in the company's 2023 Form 10-K for a discussion of potential risks[14](index=14&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q MEDALLION FINANCIAL CORP. (Exact Name of Registrant as Specified in Its Charter) DELAWARE 04-3291176 (State of Incorporation) (IRS Employer (Mark One) Identification No.) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ...

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 March 31, 2024 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 (212) 328-2100 (Regis ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2023 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 Incorporation) ( ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) (Exact Name of Registrant as Specified in Its Charter) (State of Incorporation) (IRS Employer DELAWARE 04-3291176 Identification No.) Commission file n ...

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, 2023 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 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) (State of Incorporation) DELAWARE 04-3291176 ( ...