☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) 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 ...

Financial Data and Key Metrics Changes - Net income increased by 56% to $11.1 million, with earnings per share rising to $0.46 [8][20] - Net interest income grew by 7% to $53.4 million, while the net interest margin remained steady at 8.09% [8][15] - Total loans increased to $2.49 billion, up 4% from the previous year [16][20] Business Line Data and Key Metrics Changes - Consumer lending, the largest business line, saw total originations decrease to $197 million from $277.6 million a year ago, but interest income rose by 9% to $71.2 million [9][10] - The recreational loan book grew to $1.55 billion, representing 62% of total loans, while the home improvement loan book reached $803.5 million, accounting for 32% of total loans [9][10] - The commercial segment generated $3.3 million in income this quarter, with equity gains totaling $27.6 million over the past eight quarters [11] Market Data and Key Metrics Changes - Delinquencies for recreational loans were at 0.49%, while home improvement loans had a delinquency rate of 0.16% [9][10] - The average interest rate on deposits was 3.81% as of June [15] Company Strategy and Development Direction - The company is focused on disciplined execution and strategic positioning to drive growth across its lending segments [8] - Medallion Financial is committed to returning capital to shareholders, having repurchased over 48,000 shares and increased dividends by 20% year-over-year [13][20] - The company is expanding its strategic partnership program, which has seen record originations of $168.6 million this quarter [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's pipeline and the potential for continued success, despite challenges in the economic environment [13][14] - The company anticipates growth in originations as it manages capital and maintains underwriting standards [42] Other Important Information - The company raised over $75 million through a public offering of non-cumulative perpetual preferred stock [6] - Operating costs increased to $21.5 million, driven by technological initiatives aimed at improving servicing capabilities [19] Q&A Session Summary Question: What were the strategic partners that you sold the loans to identified? - The loans sold were typical recreational loans, not from strategic partnerships, with a sale of about $53 million closed in April [24][25] Question: Is that going to be an ongoing thing? - The company expects to continue selling loans, although not on a quarterly basis [27] Question: Were there any non-recurring items in the quarter aside from the gains? - The only non-recurring item was a $1.3 million gain on the loan sale [29] Question: Your reserve ratio is going up. What's the thinking in terms of managing both the reserves and the capital levels going forward? - The capital increased significantly due to a recent offering, providing ample capital for growth [34][35] Question: Is there anything to call out on the delinquency trend for recreational loans? - The increase in delinquency is attributed to older vintages, but newer loans are performing better [40] Question: Can you walk us through unit economics of these strategic partnership loans? - The company charges fees ranging from 20 to 50 basis points for loans funded through FinTech partners, with higher yields compared to typical consumer loans [43][44] Question: Any outlook for loan growth, margin, and credit quality going forward? - The company expects to maintain current credit standards and margins, with potential expansion as interest rates fall [46][48]

Loan Portfolio & Origination - The total loan portfolio reached $2,485 million as of June 30, 2025, reflecting a 4.2% increase compared to June 30, 2024[15] - Recreation loans constitute 62.2% of the total loan portfolio, amounting to $1,546.3 million as of June 30, 2025, a 3.3% increase year-over-year[15] - Home Improvement loans represent 32.3% of the portfolio, totaling $803.5 million, showing a 3.9% increase from the previous year[15] - Commercial loans account for 4.9% of the portfolio, reaching $121.4 million, a significant 10.2% increase compared to June 30, 2024[15] - Strategic Partnership loan originations totaled $168.6 million[13] Financial Performance - Net interest income for the second quarter of 2025 was $53.4 million[28, 35] - The company reported a net income attributable to Medallion Financial Corp of $11.1 million for the second quarter of 2025[31] - The net interest margin was 8.09% on gross loans and 8.42% on net loans[14, 35] - The company declared a dividend of $0.12 per share per quarter[14, 54] - Operating costs as a percentage of net interest income were 40% for the year-to-date period ending June 30, 2025[48]

Company Overview - Medallion Financial Corp is a specialty finance company focusing on consumer and commercial lending[2] - The company has a strong foundation with a history of niche lending excellence and significant insider ownership of over 20%[7] - Medallion Financial Corp has a coveted Industrial Bank Charter[7] Financial Performance - The company's core consumer lending business is performing well, with the consumer loan portfolio more than doubling over the past 5 years to $235 billion[7] - Total Company Net Interest Margin was 805% in FY24[7] - The company's market capitalization is $2382 million, with a share price of $1025 as of July 29, 2025[6] - The total gross loans as of June 30, 2025, were $25 billion, with recreation loans accounting for $1545 million (622%) and home improvement loans accounting for $804 million (323%)[13] - Net interest income for YTD 2Q25 was $1048 million[17] - Net income attributable to Medallion Financial Corp for YTD 2Q25 was $23083 million[41] Strategic Initiatives - The company has a strategic partnership program with fintech partners, generating $3049 million in loan originations in H1 2025[8] - The company is focused on enhanced operating efficiency, with operating costs as a percentage of net interest income decreasing from 50% in FY2020 to 40% in YTD 2Q25[26]

Company Performance - Medallion Financial reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.3 per share, and showing an increase from $0.3 per share a year ago, resulting in an earnings surprise of +53.33% [1] - The company achieved revenues of $62.58 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 16.82% and up from $50.97 million year-over-year [2] - Over the last four quarters, Medallion Financial has consistently surpassed consensus EPS estimates [2] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - Current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $56.94 million, and for the current fiscal year, it is $1.59 on revenues of $229.99 million [7] - The estimate revisions trend for Medallion Financial was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Medallion Financial belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Medallion Financial's performance [5]

[Q2 2025 Earnings Release Overview](index=1&type=section&id=Q2%202025%20Earnings%20Release%20Overview) Medallion Financial Corp. achieved strong Q2 2025 results with significant net income growth and strategic loan program expansion [Company Introduction](index=1&type=section&id=Company%20Introduction) Medallion Financial Corp. is a specialty finance company focused on consumer and commercial lending, including fintech partnerships - Medallion Financial Corp. (MFIN) is a specialty finance company focused on originating and servicing consumer and commercial loans, and providing loan origination services for fintech strategic partners[2](index=2&type=chunk) [Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) Medallion Financial Corp. reported a 56% increase in Q2 2025 net income to $11.1 million, driven by core lending and strategic partnerships - The company is pleased with its strong Q2 2025 performance, with **net income increasing by 56% year-over-year**, reflecting the strength of its core lending businesses and disciplined execution across business lines[4](index=4&type=chunk) - The commercial segment has consistently generated net gains from equity investments over the past eight quarters, totaling **$27.6 million over two years**[5](index=5&type=chunk) - Medallion Bank's strategic partner loan program continues to grow, with **$169 million in loan originations this quarter**, compared to $24 million in the prior year period[5](index=5&type=chunk) Q2 2025 Key Financial and Operational Metrics | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :--------- | :--------- | :---------- | | Net Income | $11.1 Million | $7.1 Million | +56% | | Diluted Net Income per Share | $0.46 | $0.30 | +53.3% | | Net Interest Income | $53.4 Million | $49.9 Million | +7% | | Total Loan Originations | $375.0 Million | $309.1 Million | +21.3% | | Strategic Partner Loan Originations | $168.6 Million | $24.3 Million | +594% | | Total Loan Portfolio (as of June 30) | $2.485 Billion | $2.386 Billion | +4% | | Allowance for Credit Losses | $21.6 Million | $18.6 Million | +16.1% | | Net Book Value per Share (as of June 30) | $16.77 | $15.25 | +10% | | Quarterly Cash Dividend | $0.12/share | $0.10/share | +20% | | Stock Repurchases | 48,166 shares ($0.5 Million) | - | - | [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) The company's lending segments showed varied performance, with growth in loan portfolios and interest income despite some origination declines [Recreation Lending Segment](index=2&type=section&id=Recreation%20Lending%20Segment) Recreation lending saw a decrease in originations but growth in portfolio size and interest income, with higher average rates and increased delinquencies Recreation Lending Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :--------- | :--------- | :---------- | | Originations | $142.8 Million | $209.6 Million | -31.9% | | Total Loans (as of June 30) | $1.546 Billion | $1.497 Billion | +3% | | Interest Income | $51.1 Million | $47.5 Million | +8% | | Average Interest Rate (quarter-end) | 15.12% | 14.80% | +0.32 pp | | Loans 90+ Days Delinquent | $7.3 Million (0.49%) | $5.9 Million (0.41%) | +23.7% (+0.08 pp) | | Allowance for Credit Losses (loans held for investment) | 5.05% | 4.35% | +0.70 pp | - Average loan size was **$21,000**, with a weighted average FICO score of **684**[9](index=9&type=chunk) [Home Improvement Lending Segment](index=2&type=section&id=Home%20Improvement%20Lending%20Segment) Home improvement lending experienced lower originations but increased portfolio size and interest income, with stable delinquencies and slightly higher credit loss allowance Home Improvement Lending Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :--------- | :--------- | :---------- | | Originations | $54.3 Million | $68.0 Million | -20.2% | | Total Loans (as of June 30) | $803.5 Million | $773.2 Million | +4% | | Interest Income | $20.1 Million | $17.7 Million | +14% | | Average Interest Rate (quarter-end) | 9.87% | 9.71% | +0.16 pp | | Loans 90+ Days Delinquent | $1.3 Million (0.16%) | $1.3 Million (0.17%) | -0.01 pp | | Allowance for Credit Losses | 2.54% | 2.38% | +0.16 pp | - Average loan size was **$22,000**, with a weighted average FICO score of **769**[9](index=9&type=chunk) [Commercial Lending Segment](index=2&type=section&id=Commercial%20Lending%20Segment) Commercial lending originated $9.4 million in loans, grew its portfolio, and generated $6.1 million in net gains from equity investments, with an improved average interest rate Commercial Lending Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :--------- | :--------- | :---------- | | Originations | $9.4 Million | - | - | | Total Loans (as of June 30) | $121.4 Million | $110.2 Million | +10.2% | | Net Gains from Equity Investments | $6.1 Million | - | - | | Average Portfolio Interest Rate | 13.43% | 13.05% | +0.38 pp | - Average loan size was **$3.6 million**, invested across **34 portfolio companies**[9](index=9&type=chunk) [Strategic Partnerships](index=2&type=section&id=Strategic%20Partnerships) Strategic partner loan originations significantly increased, leading to a substantial rise in fee income, indicating strong expansion in this business line Strategic Partnerships Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :--------- | :--------- | :---------- | | Originations | $168.6 Million | $24.3 Million | +594% | | Fee Income | $0.8 Million | $0.5 Million | +60% | | Total Loans Held (quarter-end) | $12.3 Million | - | - | | Average Loan Holding Period | 5 Days | - | - | [Taxi Medallion Lending Segment](index=2&type=section&id=Taxi%20Medallion%20Lending%20Segment) Taxi medallion-related assets continued to decrease, with the company recovering $2.3 million in cash and realizing $1.4 million in net recoveries and gains Taxi Medallion Lending Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :--------- | :--------- | :---------- | | Cash Recoveries | $2.3 Million | - | - | | Net Recoveries and Gains | $1.4 Million | - | - | | Total Net Assets (as of June 30) | $5.9 Million | - | -41% (YoY) | | Percentage of Total Company Assets (as of June 30) | <0.3% | - | - | [Loan Portfolio & Capital Management](index=3&type=section&id=Loan%20Portfolio%20%26%20Capital%20Management) The company's loan portfolio totaled $2.485 billion, primarily composed of recreation and home improvement loans, with stable capital allocation and dividend payments [Loan Portfolio Composition](index=3&type=section&id=Loan%20Portfolio%20Composition) As of June 30, 2025, the total loan portfolio was $2.485 billion, with recreation and home improvement loans constituting 60% and 32% respectively Loan Portfolio Composition (as of June 30, 2025 vs December 31, 2024) | (Thousand USD) | June 30, 2025 | % of Total Loans | December 31, 2024 | % of Total Loans | | :--------------------------------- | :------------- | :------------- | :------------- | :------------- | | **Loans Held for Investment:** | | | | | | Recreation | $1,486,047 | 60% | $1,422,403 | 57% | | Home Improvement | 803,535 | 32% | 827,211 | 33% | | Commercial | 121,415 | 5% | 111,273 | 4% | | Taxi Medallion | 1,564 | * | 1,909 | * | | **Loans Held for Sale:** | | | | | | Recreation | 60,205 | 2% | 120,840 | 5% | | Strategic Partner | 12,285 | * | 7,386 | * | | **Total Loans and Loans Held for Sale** | **$2,485,051** | **100%** | **$2,491,022** | **100%** | [Balance Sheet Overview](index=3&type=section&id=Balance%20Sheet%20Overview) As of June 30, 2025, total assets increased to $2.880 billion, primarily due to higher prepaid expenses, while cash and cash equivalents remained stable Balance Sheet Key Metrics (as of June 30, 2025 vs June 30, 2024) | Metric | June 30, 2025 | June 30, 2024 | Change (YoY) | | :-------------------------------- | :------------- | :------------- | :---------- | | Cash and Cash Equivalents (incl. investment securities) | $213.5 Million | $213.8 Million | -0.1% | | Total Assets | $2.880 Billion | $2.761 Billion | +4.3% | | Total Liabilities | $2.347 Billion | $2.338 Billion | +0.4% | - The increase in total assets was primarily attributable to an increase in prepaid expenses, resulting from Medallion Bank's redemption of Series F preferred stock on July 1, 2025[13](index=13&type=chunk) [Capital Allocation & Dividends](index=3&type=section&id=Capital%20Allocation%20%26%20Dividends) The board declared a Q3 2025 dividend of $0.12 per share, consistent with Q2 and a 20% increase year-over-year - The Board of Directors declared a **Q3 2025 dividend of $0.12 per share**, payable on August 29, 2025, to shareholders of record at the close of business on August 15, 2025[11](index=11&type=chunk) - This dividend amount is **consistent with the $0.12 per share paid in Q2 2025** and represents a **20% increase from the prior year period**[11](index=11&type=chunk) Declared Dividends (per share) | Quarter | Amount per Share | Record Date | Payment Date | | :-------------------- | :------- | :--------- | :--------- | | 2025 Q3 | $0.12 | 8/15/2025 | 8/29/2025 | | 2025 Q2 | $0.12 | 5/15/2025 | 5/30/2025 | | 2025 Q1 | $0.11 | 3/17/2025 | 3/31/2025 | | **2025 Total (YTD)** | **$0.35** | | | | 2024 Total | $0.41 | | | | 2023 Total | $0.34 | | | | 2022 Total | $0.32 | | | [Stock Repurchase Plan](index=3&type=section&id=Stock%20Repurchase%20Plan) The company repurchased 48,166 common shares for $0.5 million in Q2 2025, with $14.4 million remaining under its $40 million repurchase program - For the three months ended June 30, 2025, the company repurchased **48,166 shares of common stock** at an average price of **$9.44 per share**, totaling **$0.5 million**[14](index=14&type=chunk) - As of June 30, 2025, **$14.4 million remained available** under the company's **$40 million stock repurchase program**[14](index=14&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements provide a detailed overview of the company's assets, liabilities, equity, and operational performance for the period [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Medallion Financial Corp.'s consolidated balance sheet reported total assets of $2.880 billion, total liabilities of $2.347 billion, and total equity of $390 million Consolidated Balance Sheets (Unaudited) | (Thousand USD, except for shares and per share data) | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--------------------------------- | :------------- | :------------- | :------------- | | **Assets** | | | | | Cash, cash equivalents and federal funds sold | $151,994 | $169,572 | $157,961 | | Investment securities | 61,529 | 54,805 | 55,830 | | Equity investments | 8,097 | 9,198 | 10,795 | | Loans held for sale | 72,490 | 128,226 | — | | Loans | 2,412,561 | 2,362,796 | 2,385,590 | | Allowance for credit losses | (106,896) | (97,368) | (89,788) | | Net loans receivable | 2,305,665 | 2,265,428 | 2,295,802 | | Goodwill and intangible assets, net | 169,227 | 169,949 | 170,672 | | Property, equipment and right-of-use lease assets, net | 11,890 | 13,756 | 14,094 | | Accrued interest receivable | 15,294 | 15,314 | 13,299 | | Loan collateral in process of foreclosure | 9,007 | 9,932 | 9,359 | | Other assets | 74,801 | 32,426 | 33,064 | | **Total Assets** | **$2,879,994** | **$2,868,606** | **$2,760,876** | | **Liabilities** | | | | | Deposits | $2,009,176 | $2,090,071 | $2,006,782 | | Long-term debt | 199,928 | 232,159 | 230,803 | | Short-term borrowings | 86,750 | 49,000 | 37,500 | | Deferred tax liability, net | 19,261 | 20,995 | 22,394 | | Operating lease liabilities | 4,041 | 5,128 | 6,071 | | Accrued interest payable | 5,746 | 8,231 | 7,945 | | Accounts payable and accrued expenses | 22,527 | 24,064 | 26,592 | | **Total Liabilities** | **$2,347,429** | **$2,429,648** | **$2,338,087** | | **Total Stockholders’ Equity** | **$389,896** | **$370,170** | **$354,001** | | Non-controlling interests | 142,669 | 68,788 | 68,788 | | **Total Equity** | **$532,565** | **$438,958** | **$422,789** | | **Total Liabilities and Equity** | **$2,879,994** | **$2,868,606** | **$2,760,876** | | Shares outstanding | 23,246,593 | 23,135,624 | 23,211,990 | | Book value per share | $16.77 | $16.00 | $15.25 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) In Q2 2025, the company reported total interest income of $77.4 million, net interest income of $53.4 million, net income of $11.1 million, and diluted EPS of $0.46 Consolidated Statements of Operations (Unaudited) | (Thousand USD, except for shares and per share data) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------------- | :--------- | :--------- | :----------- | :----------- | | Total interest income | $77,442 | $70,704 | $152,867 | $137,774 | | Total interest expense | 24,072 | 20,836 | 48,085 | 39,989 | | **Net Interest Income** | **53,370** | **49,868** | **104,782** | **97,785** | | Provision for credit losses | 21,562 | 18,577 | 43,576 | 35,778 | | Net interest income after provision for credit losses | 31,808 | 31,291 | 61,206 | 62,007 | | **Other Income** | | | | | | Net gains (losses) on equity investments | 6,096 | (512) | 15,526 | 3,655 | | Gains on sale of recreation loans | 1,304 | — | 1,304 | — | | Net gains on taxi medallion assets | 749 | 242 | 1,592 | 830 | | Strategic partner fees | 787 | 480 | 1,472 | 806 | | Other income | 273 | 889 | 914 | 1,211 | | **Total Other Income, Net** | **9,209** | **1,099** | **20,808** | **6,502** | | **Other Expenses** | | | | | | Salaries and employee benefits | 10,148 | 9,435 | 20,141 | 18,892 | | Loan servicing fees | 2,899 | 2,692 | 5,716 | 5,162 | | Collection costs | 1,749 | 1,659 | 3,286 | 3,126 | | Regulatory fees | 1,109 | 888 | 1,930 | 1,865 | | Professional services, net | 1,187 | 1,845 | 2,937 | 2,616 | | Rent expense | 683 | 698 | 1,358 | 1,355 | | Amortization of intangible assets | 362 | 362 | 723 | 723 | | Other expenses | 3,408 | 2,416 | 6,212 | 4,481 | | **Total Other Expenses** | **21,545** | **19,995** | **42,303** | **38,220** | | Income before income tax provision | 19,472 | 12,395 | 39,711 | 30,289 | | Provision for income taxes | 5,805 | 3,782 | 12,518 | 10,140 | | Net income after income tax provision | 13,667 | 8,613 | 27,193 | 20,149 | | Less: Income attributable to non-controlling interests | 2,598 | 1,512 | 4,110 | 3,024 | | **Total Net Income Attributable to Medallion Financial Corp.** | **$11,069** | **$7,101** | **$23,083** | **$17,125** | | Basic net income per share | $0.49 | $0.31 | $1.02 | $0.76 | | Diluted net income per share | $0.46 | $0.30 | $0.96 | $0.73 | | Dividends declared per common share | $0.12 | $0.10 | $0.24 | $0.20 | [Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides details on the upcoming conference call, company background, and important forward-looking statements and investor contacts [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) The company will host a conference call on July 31, 2025, at 9:00 AM ET to discuss Q2 financial results, with webcast and replay options available - The company will host a conference call on **Thursday, July 31, 2025, at 9:00 AM ET** to discuss its second-quarter financial results[15](index=15&type=chunk) - A live audio webcast of the call will be available on the company's investor relations website, with a replay accessible until August 7, 2025[16](index=16&type=chunk)[17](index=17&type=chunk) - The dial-in number is **(412) 317-0504**, with a passcode of **1020 1134**[20](index=20&type=chunk) [About Medallion Financial Corp.](index=4&type=section&id=About%20Medallion%20Financial%20Corp.) Medallion Financial Corp. and its subsidiaries originate and service consumer and mezzanine loans, primarily in recreation and home improvement sectors - Medallion Financial Corp. (NASDAQ: MFIN) and its subsidiaries originate and service a growing portfolio of **consumer and mezzanine loans**[18](index=18&type=chunk) - Key industries served include **recreation (RVs and boats)** and **home improvement (roofing, pools, and windows)**[18](index=18&type=chunk) - The company is headquartered in New York City, with its largest subsidiary, Medallion Bank, based in Salt Lake City, Utah[18](index=18&type=chunk) [Forward-Looking Statements & Investor Contacts](index=4&type=section&id=Forward-Looking%20Statements%20%26%20Investor%20Contacts) This press release contains forward-looking statements regarding business performance, cash flow, and growth strategies, with investor contact information provided for inquiries - This press release contains forward-looking statements involving risks and uncertainties regarding business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and growth strategies[19](index=19&type=chunk) - Medallion's actual results could differ materially from those discussed in the forward-looking statements due to factors such as economic conditions, tariff impacts, operations, financial performance, and prospects[19](index=19&type=chunk) - Investors can contact the company's Investor Relations department via email at **InvestorRelations@medallion.com** or by phone at **212-328-2176**[20](index=20&type=chunk)

Core Viewpoint - Medallion Financial Corp. reported a 56% increase in net income year-over-year for the second quarter of 2025, reflecting strong performance across its core lending businesses and disciplined execution [3][6]. Financial Performance - Net income grew to $11.1 million, or $0.46 per share, compared to $7.1 million, or $0.30 per share, in the prior year quarter [6]. - Net interest income increased by 7% to $53.4 million from $49.9 million in the prior year quarter [6]. - Loan originations rose to $375.0 million, up from $309.1 million in the prior year quarter, with strategic partnership loan originations significantly increasing to $168.6 million from $24.3 million [6][4]. - The loan portfolio as of June 30, 2025, was $2.485 billion, a 4% increase from $2.386 billion a year ago [6]. Business Segment Highlights - The recreation lending segment saw loans grow 3% to $1.546 billion, representing 62% of total loans [7]. - Home improvement loans increased by 4% to $803.5 million, accounting for 32% of total loans [11]. - The commercial lending segment's loans grew to $121.4 million, with originations of $168.6 million during the quarter, compared to $24.3 million a year ago [11][12]. Equity Investments - The commercial division generated net gains from equity investments totaling $27.6 million over the past two years, with significant gains in six of the past eight quarters [4]. - As of June 30, 2025, the company had a portfolio of more than 30 equity investments valued at $8.1 million on the balance sheet [4]. Dividend and Stock Repurchase - The company declared a quarterly cash dividend of $0.12 per share, unchanged from the previous quarter and 20% higher than the same quarter last year [14]. - During the quarter, the company repurchased 48,166 shares of its common stock at an average cost of $9.44 per share, totaling $0.5 million [18]. Balance Sheet Overview - Total assets amounted to $2.880 billion, up from $2.761 billion a year ago, primarily due to an increase in prepaid expenses [17]. - Total liabilities were $2.347 billion, slightly up from $2.338 billion a year ago [17]. - The net book value per share as of June 30, 2025, was $16.77, a 10% increase from $15.25 a year ago [6].

Core Insights - Medallion Bank reported a net income of $17.3 million for Q2 2025, an increase from $15.0 million in the same quarter last year, highlighting strong earnings growth and significant capital market activities [3][6] - The bank's total loan portfolio grew by 1% year-over-year to $2.3 billion as of June 30, 2025, with strategic partnership volumes increasing by 24% from Q1 2025 [4][6] Financial Performance - Net interest income reached $53.9 million, up from $50.2 million in the prior year quarter, while total non-interest income increased to $2.7 million from $0.9 million [6] - The net interest margin slightly decreased to 8.54% from 8.55% year-over-year [6] - Annualized net charge-offs rose to 2.66% of average loans outstanding compared to 2.31% in the prior year quarter [6] Loan Portfolio Details - The recreation loan portfolio decreased by 0.8% to $1.486 billion, with loan originations at $142.8 million, down from $209.6 million in the prior year quarter [7] - The home improvement loan portfolio grew by 4% to $803.5 million, with loan originations at $54.3 million, compared to $68.0 million in the prior year quarter [12] - Delinquency rates for home improvement loans improved, remaining stable at 0.86%, while recreation loans saw an increase in delinquencies to 4.42% [7][12] Capital Market Activities - The bank completed a $77.5 million Series G preferred stock offering and redeemed $46 million of Series F preferred securities [3][4] - The Series F preferred stock was fully redeemed on July 1, 2025, with no further dividends to be paid [8] Strategic Partnerships - Strategic partnership volumes reached $169 million in Q2 2025, reflecting a 24% increase from $136 million in Q1 2025 [4]

Group 1 - Medallion Financial Corp. will report its financial results for the quarter ended June 30, 2025, after market close on July 30, 2025 [1] - A conference call to discuss these financial results is scheduled for 9:00 am ET on July 31, 2025 [6] - The conference call will be accessible via a live audio webcast on the Company's IR website [2][4] Group 2 - Medallion Financial Corp. specializes in originating and servicing consumer and mezzanine loans across various industries, including recreation and home improvement [5] - The Company is headquartered in New York City, with its largest subsidiary, Medallion Bank, located in Salt Lake City, Utah [5]

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