Financial Data and Key Metrics Changes - The company reported a net income of $14.2 million for Q2 2023, with diluted earnings per share of $0.62, reflecting a return on equity of 18.2% and a return on assets of 2.6% [10][14]. - Net interest income increased by 20% year-over-year to $46.7 million, driven by growth in the loan portfolio and higher interest rates [8][18]. - Operating expenses rose by 1% to $19 million, primarily due to increased employee-related costs, offset by lower legal and professional fees [10]. Business Line Data and Key Metrics Changes - The consumer lending business saw significant origination volumes, with a strong performance attributed to a national base of dealers and contractors [5][7]. - The recreational business segment reported the highest average interest rates of 14.62% and is now the largest segment with $1.3 billion in assets [15]. - The commercial business remained flat compared to the previous quarter, with $5 million in loan originations and a solid pipeline for future growth [16]. Market Data and Key Metrics Changes - The company noted a reduction in competition within the consumer lending space, allowing it to capture market share despite tightening credit and raising rates [22][52]. - The average interest rates on loans increased, with home improvement loans currently written at rates of 10% to 11% and recreational loans at around 16% [33][52]. Company Strategy and Development Direction - The company aims to maintain flexibility in pricing new originations to counteract rising borrowing rates while focusing on customer service to enhance loyalty [5][15]. - The management emphasized the importance of rigorous underwriting standards to target borrowers with a high propensity to repay loans, which has helped maintain high returns and low losses [6][19]. Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of US consumers, which has contributed to strong demand for loans, particularly in home improvement and recreational segments [7][14]. - The company anticipates a return to seasonal trends in loan growth, expecting moderation in the second half of the year [41][51]. Other Important Information - The provision for credit loss was $8.5 million for the quarter, reflecting a normalization of losses in the consumer portfolio, offset by $5.3 million in recoveries on taxi medallion loans [19][36]. - The company ended the quarter with a Tier-1 capital ratio just over 16% and declared a dividend of $0.08 per share [29][78]. Q&A Session Summary Question: Can you provide more details about the competitive environment in the consumer space? - Management noted that there is less competition, allowing the company to grow market share despite tightening credit and raising rates [22]. Question: What is the pricing strategy for Q2? - The company has been increasing rates on new loans for several quarters, which has been slow to reflect in overall yield due to the fixed-rate nature of existing loans [26]. Question: What are the current capital levels and market outlook? - The company has a Tier-1 capital ratio over 16% and plans to reinvest a significant portion of earnings back into the business to support growth [29]. Question: Is there an expectation for dividend increases? - Management indicated that while dividends and buybacks are important, the focus will be on growth and market conditions before making decisions on increases [31][78]. Question: Can you clarify the provision for credit loss? - The gross provision was effectively $13.8 million when accounting for recoveries, with net charge-offs reported at $5.9 million excluding the medallion segment [36][37]. Question: What is the outlook for loan growth? - The company expects a return to seasonal trends, with moderation in growth anticipated in the second half of the year [41][51].

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, 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 Incorporati ...

Financial Data and Key Metrics Changes - Net interest income grew 21% year-over-year to $44 million, driven by growth in the loan portfolio, which now stands at just under $2 billion [5][39] - Net income for the quarter was $15.4 million, or $0.67 per share, with a return on equity of over 20% and return on assets nearly at 3% [9] - The net interest margin on gross loans was 8.42%, down from 8.91% in the prior year quarter, reflecting the current interest rate environment [29] Business Line Data and Key Metrics Changes - The Home Improvement segment continued to be the fastest-growing, with strong originations related to popular projects like roofs, windows, and pools [2] - The recreational business, mainly loans for smaller boats and RVs, had over $100 million in originations, which is below peak levels but still considered strong [2] - The commercial business reached $95 million in loans outstanding, up from $78 million a year ago, and earned just over $1 million for the quarter [10] Market Data and Key Metrics Changes - The average interest rate remained above 14%, with expectations for continued growth in yield and coupon as older loans run off [2][16] - The company experienced a 2% increase in operating expenses, attributed to higher salary and employee benefit costs [6] Company Strategy and Development Direction - The company remains confident in its business model as a specialty finance company, utilizing broker deposits to fund loan growth, which helps manage borrowing costs and provides safety [3][4] - The strategy includes maintaining a strong focus on consumer lending while preparing for future growth amid the current banking environment [11][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model under various conditions, despite challenges in the banking sector [3][4] - The provision for credit losses was $4 million for the quarter, reflecting a normalization of losses to historic levels, with significant recoveries from the Medallion segment [6][40] Other Important Information - The company declared and paid a dividend of $0.08 per share for the fifth consecutive quarter, opting not to repurchase any stock during the quarter to retain capital for growth [11] - Cash collections from Medallion assets were notably strong, with over $13 million collected in the quarter, higher than normal [37][56] Q&A Session Summary Question: Why did yields decline in the Home Improvement segment? - Management explained that various factors beyond the coupon rate affect yield calculations, and while yields have come down, they expect continued growth as older loans are replaced with newer ones [16] Question: What are the expectations for originations in Home Improvement versus recreational loans for the rest of the year? - Management indicated that Home Improvement originations are expected to be stronger, while recreational loans may be softer in comparison [21] Question: Can you discuss the rates on the $500 million CDs coming due in 2023? - Management noted that CD rates have increased over the past 1.5 years, and while there may be some downward pressure on rates, they expect to see growth in yield and coupon as the loan portfolio matures [16][31]

Financial Position - As of December 31, 2022, total assets were $2.3 billion, an increase from $1.9 billion in 2021[204] - Total assets grew to $2,079,250,000 in 2022, up from $1,732,600,000 in 2021, indicating overall growth in the company's financial position[225] - Total stockholders' equity increased to $293,720,000 in 2022 from $254,749,000 in 2021, reflecting improved financial health[225] - Total debt outstanding as of December 31, 2022, was $1,833,434,000, compared to $1,478,001,000 in 2021, reflecting an increase of 24%[314] Loan Portfolio - Consumer loans represented 94% of the gross loan portfolio, while commercial loans accounted for 5%[204] - Total loans reached $1,656,998,000 in 2022, with significant contributions from home improvement loans at $517,192,000 and recreation loans at $1,048,068,000[225] - Total loans increased to $1,916,953,000 as of December 31, 2022, up from $1,488,924,000 in 2021, representing a growth of approximately 28.7%[232] - Loan originations for 2022 totaled $983,908,000, compared to $747,371,000 in 2021, indicating a year-over-year increase of about 31.6%[232] - The recreation loan portfolio grew to $1,183,512,000 in 2022, up from $961,320,000 in 2021, reflecting an increase of approximately 23.1%[232] - Home improvement loans also saw growth, reaching $626,399,000 in 2022, compared to $436,772,000 in 2021, marking a rise of about 43.4%[232] Loan Performance and Risk - The allowance for loan losses increased to $63.845 million as of December 31, 2022, from $50.166 million in 2021, primarily due to growth in the loan portfolio and higher net charge-offs[238] - The provision for loan losses rose significantly to $30.059 million in 2022, compared to $4.622 million in 2021, indicating increased risk in the loan portfolio[238] - The net charge-off percentage increased to 1.27% in 2022 from 0.30% in 2021, reflecting a rise in loan defaults[252] - The overall delinquency status for loans was 0.64% as of December 31, 2022, compared to 0.41% in 2021, indicating a deterioration in loan performance[252] Interest Income and Margin - The company reported net interest income of $160,430,000 for the year ended December 31, 2022, compared to $127,820,000 in 2021[225] - Total interest income for the year ended December 31, 2022, was $139.145 million, up from $118.305 million in 2021, reflecting a growth in the recreation lending segment[252] - The net interest margin for 2022 was 9.05%, compared to 9.25% in 2021, indicating a slight compression in profitability[225] - Total interest income increased to $196.6 million for the year ended December 31, 2022, compared to $159.0 million in 2021, driven by growth in recreation and home improvement lending segments[278] Economic Factors and Strategic Initiatives - The company continues to monitor economic factors such as inflation, labor shortages, and gas prices that may impact loan demand[205] - The Bank launched a strategic partnership program with fintech companies in 2019, continuing to evaluate additional partnerships[208] - The company actively seeks additional sources of liquidity but acknowledges potential challenges in securing favorable terms due to market conditions[316] Accounting and Regulatory Changes - The anticipated adoption of the Current Expected Credit Loss (CECL) accounting standard is expected to increase the allowance for loan losses by $11.6 million for consumer loans and $2.2 million for commercial loans[219] - The adoption of new accounting standards is expected to have a near-term effect of larger loan loss provisions compared to previous standards[317] Interest Rate Exposure - As of December 31, 2022, interest rate sensitive assets totaled $2.1 billion, while interest rate sensitive liabilities amounted to $1.8 billion, resulting in a one-year cumulative interest rate gap of negative $367.8 million, or 18% of interest rate sensitive assets[296] - The company actively monitors interest rate exposure to mitigate adverse impacts on future earnings, utilizing net interest income sensitivity analysis as the primary metric[296] - A hypothetical immediate 1% increase in interest rates would increase net income by $1.2 million annually, while a similar increase over one year would have reduced net income by $1.4 million[311]

Medallion Financial Corp (NASDAQ:MFIN) Q4 2022 Earnings Conference Call February 23, 2023 9:00 AM ET Company Participants Ken Cooper - IR Andrew Murstein - President, COO & Non-Independent Director Anthony Cutrone - EVP & CFO Conference Call Participants Matthew Howlett - B. Riley Securities Michael Grondahl - Northland Capital Markets Operator Greetings, and welcome to the Medallion Financial Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions]. It is now my pleasure to introduce your hos ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Total assets increased to **$2.2 billion** by September 30, 2022, driven by loan growth, while nine-month net income decreased to **$30.8 million** due to higher loan loss provisions and professional fees Consolidated Balance Sheet Highlights (Unaudited) | (Dollars in thousands) | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $24,754 | $64,482 | | Net loans receivable | $1,793,975 | $1,438,758 | | Total assets | $2,199,541 | $1,873,057 | | **Liabilities & Equity** | | | | Deposits | $1,555,832 | $1,250,880 | | Long-term debt | $219,448 | $219,973 | | Total liabilities | $1,839,652 | $1,517,229 | | Total equity | $359,889 | $355,828 | Consolidated Statements of Operations Highlights (Unaudited) | (Dollars in thousands, except per share data) | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net interest income | $116,850 | $92,235 | | Provision for loan losses | $21,046 | $2,000 | | Total other income, net | $8,655 | $16,909 | | Total other expenses | $56,255 | $53,185 | | Net income attributable to Medallion Financial Corp. | $30,777 | $34,638 | | Diluted net income per share | $1.26 | $1.39 | Consolidated Statements of Cash Flows Highlights (Unaudited) | (Dollars in thousands) | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $78,989 | $61,976 | | Net cash used for investing activities | ($380,764) | ($202,125) | | Net cash provided by financing activities | $275,493 | $113,483 | | **Net decrease in cash and cash equivalents** | **($26,282)** | **($26,666)** | [Note 4: Loans and Allowance for Loan Losses](index=17&type=section&id=Note%204%3A%20Loans%20and%20Allowance%20for%20Loan%20Losses) Gross loans grew to **$1.86 billion** by September 30, 2022, primarily in Recreation and Home Improvement, with the allowance for loan losses increasing to **$61.5 million** and a **$21.0 million** provision for loan losses due to portfolio growth and normalizing credit trends Loan Portfolio Composition (Gross Loans) | (Dollars in thousands) | Sep 30, 2022 | % of Total | Dec 31, 2021 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Recreation | $1,171,819 | 63% | $961,320 | 65% | | Home improvement | $575,210 | 31% | $436,772 | 29% | | Commercial | $93,735 | 5% | $76,696 | 5% | | Medallion | $13,973 | 1% | $14,046 | 1% | | **Total gross loans** | **$1,855,510** | **100%** | **$1,488,924** | **100%** | Activity in Allowance for Loan Losses (Nine Months Ended Sep 30) | (Dollars in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Beginning Balance | $50,166 | $57,548 | | Total charge-offs | ($27,139) | ($27,075) | | Total recoveries | $17,462 | $14,975 | | Net charge-offs | ($9,677) | ($12,100) | | Provision for loan losses | $21,046 | $2,000 | | **Ending Balance** | **$61,535** | **$47,448** | - Total nonaccrual loans decreased to **$30.8 million** (1.7% of gross loans) at September 30, 2022, from **$35.6 million** (2.4% of gross loans) at December 31, 2021[91](index=91&type=chunk) [Note 9: Segment Reporting](index=27&type=section&id=Note%209%3A%20Segment%20Reporting) The company's four lending segments saw Recreation contribute **$37.7 million** and Home Improvement **$9.3 million** to nine-month net income, while Commercial incurred a loss and Medallion reported a small profit from recoveries Net Income (Loss) by Segment (Nine Months Ended Sep 30, 2022) | (Dollars in thousands) | Net Income (Loss) Attributable to Medallion Financial Corp. | | :--- | :--- | | Recreation | $37,657 | | Home Improvement | $9,307 | | Commercial Lending | ($807) | | Medallion Lending | $447 | | Corporate and Other Investments | ($11,292) | | **Total** | **$30,777** | - The Recreation lending segment remains the primary earnings driver, accounting for **71% of total interest income** in Q3 2022, with its loan portfolio concentrated in RVs (**58%**), boats (**20%**), and trailers (**13%**)[144](index=144&type=chunk)[148](index=148&type=chunk) - The Home Improvement lending segment is the second-largest contributor, with loans concentrated in roofs (**37%**), swimming pools (**23%**), and windows (**12%**)[144](index=144&type=chunk) - All Medallion loans were deemed impaired and placed on nonaccrual status in Q3 2020, with the segment's results driven by recoveries and valuation adjustments[207](index=207&type=chunk)[261](index=261&type=chunk) [Note 10: Commitments and Contingencies](index=31&type=section&id=Note%2010%3A%20Commitments%20and%20Contingencies) The company is involved in civil litigation with the SEC, filed in December 2021, alleging violations related to 2015-2017 activities, and while the company intends to defend itself vigorously, the outcome could result in a material loss - On December 29, 2021, the SEC filed a civil complaint against the Company and its President/COO[162](index=162&type=chunk) - Allegations relate to the 2015-2017 period and include issues with third-party promotions and financial reporting when the company was a Business Development Company (BDC)[162](index=162&type=chunk) - The SEC is seeking injunctive relief, disgorgement, civil penalties, and an officer and director bar, with the company intending vigorous defense but acknowledging a potential material loss[163](index=163&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes Q3 2022 results to strong consumer loan growth driving a **23% increase** in net interest income, offset by a **$10.0 million** provision for loan losses and higher legal fees, as credit metrics normalize and the company focuses on growing its lending businesses - The company's strategic focus is on its consumer finance (Recreation and Home Improvement) and commercial lending businesses, with consumer loans representing **94% of the gross loan portfolio** as of September 30, 2022[195](index=195&type=chunk) - Net interest margin for Q3 2022 was **8.91%**, down from **9.48%** in Q3 2021, reflecting a changing loan mix and rising funding costs, with management expecting further tightening as interest rates rise[212](index=212&type=chunk)[277](index=277&type=chunk) - The company is preparing for the adoption of the CECL accounting standard on January 1, 2023, anticipating an initial **10-15% overall increase** in the allowance for credit losses[75](index=75&type=chunk)[201](index=201&type=chunk) - The company reinstated its quarterly dividend in March 2022 and has an active stock repurchase program, under which it repurchased **$18.8 million** of its common stock in the first nine months of 2022[311](index=311&type=chunk)[312](index=312&type=chunk) [Consolidated Results of Operations](index=51&type=section&id=Consolidated%20Results%20of%20Operations) For Q3 2022, net income attributable to shareholders decreased to **$7.6 million** ($0.32/share) from **$15.9 million** ($0.64/share) in Q3 2021, primarily due to a **$10.0 million** provision for loan losses and increased professional fees, despite a **$7.9 million** increase in net interest income from loan growth Q3 Performance Comparison (2022 vs 2021) | (Dollars in thousands) | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Net Interest Income | $42,040 | $34,071 | | Provision for Loan Losses | $10,047 | ($337) | | Professional Fees | $3,722 | $1,963 | | Net Income Attributable to Shareholders | $7,636 | $15,940 | - Net charge-offs in the consumer businesses began to normalize in Q3 2022, contributing to the higher provision for loan losses, a trend management expects to continue[275](index=275&type=chunk) - Net other loss was **$0.2 million** in Q3 2022, compared to income of **$7.2 million** in Q3 2021, with the current quarter including a **$1.1 million** charge on an equity investment[278](index=278&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily from brokered certificates of deposit, privately placed notes, and SBA debentures, with total debt outstanding at **$1.78 billion** as of September 30, 2022, and a new **$40 million** stock repurchase program authorized with **$21.8 million** remaining available Debt Composition as of September 30, 2022 | (Dollars in thousands) | Balance | Percentage | Rate | | :--- | :--- | :--- | :--- | | Deposits | $1,558,702 | 87% | 1.63% | | Privately placed notes | $121,000 | 7% | 7.66% | | SBA debentures and borrowings | $68,763 | 4% | 2.94% | | Preferred securities | $33,000 | 2% | 5.27% | | **Total outstanding debt** | **$1,781,465** | **100%** | **2.16%** | - The company's board authorized a new stock repurchase program of up to **$40 million**, with **$21.8 million** remaining available for repurchases as of September 30, 2022[312](index=312&type=chunk) - A hypothetical immediate **1% increase** in interest rates is estimated to increase net income by **$1.0 million** on an annualized basis as of September 30, 2022[304](index=304&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) There have been no material changes in the company's disclosures regarding quantitative and qualitative market risk since its Annual Report on Form 10-K for the year ended December 31, 2021 - There has been no material change in disclosure regarding market risk since the 2021 Form 10-K[314](index=314&type=chunk) [Controls and Procedures](index=56&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, 2022, with no material changes to internal control over financial reporting identified during Q3 2022 - The CEO and CFO concluded that disclosure controls and procedures were effective as of September 30, 2022[315](index=315&type=chunk) - No changes in internal control over financial reporting that materially affected or are likely to materially affect controls were identified in Q3 2022[316](index=316&type=chunk) [PART II—OTHER INFORMATION](index=56&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=56&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company refers to Note 10 of the financial statements for details on its legal proceedings, prominently featuring the ongoing civil litigation with the U.S. Securities and Exchange Commission (SEC) - For details on legal proceedings, the report refers to Note 10, subsections (c) and (d) of the consolidated financial statements, which describe the SEC litigation and other matters[317](index=317&type=chunk) [Risk Factors](index=56&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the company's risk factors from those disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2021 - No material changes in risk factors have occurred since the company's 2021 Annual Report on Form 10-K[318](index=318&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company has an active stock repurchase program, increased to **$40 million** in August 2022, under which it repurchased **1,053,870 shares** for **$8.2 million** during Q3 2022, with **$21.8 million** remaining authorized for future repurchases Share Repurchase Activity (Q3 2022) | Period | Total Shares Repurchased | Average Price Paid per Share | Total Amount Paid ($) | | :--- | :--- | :--- | :--- | | July 1 - July 31 | — | $— | $— | | August 1 - August 31 | 734,547 | $7.93 | $5,822,227 | | September 1 - September 30 | 319,323 | $7.54 | $2,408,673 | | **Total Q3** | **1,053,870** | **$7.81** | **$8,230,901** | - As of September 30, 2022, up to **$21.8 million** of shares remain authorized for repurchase under the company's stock repurchase program[319](index=319&type=chunk)[320](index=320&type=chunk) [Exhibits](index=57&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including an amendment to a cooperation agreement, a form of Performance Stock Unit agreement, and various officer certifications as required by the Sarbanes-Oxley Act

Medallion Financial Corp. (NASDAQ:MFIN) Q3 2022 Earnings Conference Call October 28, 2022 9:00 AM ET Company Participants Ken Cooper - Investor Relations Andrew Murstein - President & Chief Operating Officer Anthony Cutrone - Chief Financial Officer Conference Call Participants Owen Rickert - Northland Securities Matthew Howlett - B. Riley Operator Ladies and gentlemen, greetings and welcome to the Medallion Financial Third Quarter 2022 Earnings Conference Call. At this time all participants are in a listen ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q OR (Mark One) ☐ 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) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 DELAWARE 04-3291176 (State of Incorporatio ...

Financial Data and Key Metrics Changes - Net income for the quarter increased by 30% year-over-year to $13.3 million, driven by strong credit quality and robust loan originations [6][19] - Net interest income grew by 32% year-over-year to $38.9 million, attributed to growth in loan portfolios and high yields [13][19] - The net interest margin was 9.07%, a decrease of 13 basis points from the previous quarter but an increase of 23 basis points from the prior year [14] Business Line Data and Key Metrics Changes - Loan originations increased by 45% year-over-year to $305 million, with significant contributions from both consumer and commercial lending [7][13] - The home improvement lending segment grew by 43%, while the recreational portfolio grew by 24% [10] - Commercial lending originated $19 million in loans, marking the highest volume in over four years [11] Market Data and Key Metrics Changes - The company reported a loan loss provision of $7.8 million, up from $3.2 million in the prior quarter, reflecting growth rather than rising credit losses [16] - Non-interest income was $7.4 million, including a $4.2 million gain from exiting an equity investment [17] Company Strategy and Development Direction - The company is focused on expanding its consumer and commercial lending businesses, with plans to remain opportunistic in stock repurchases if shares are undervalued [8][58] - The company aims to grow its fintech partnerships, with a goal of signing a fourth partner within the next three to six months [37][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining long-term interest margins despite rising funding costs [26] - The company anticipates continued growth in loan originations, although it expects that the pace may not be sustainable [29] - Management noted that credit normalization is expected eventually, but current charge-off rates remain low [65] Other Important Information - The company collected $13.1 million related to medallion assets, significantly reducing its exposure and generating approximately $5.2 million of income [20][51] - The company declared and paid a dividend of $0.08 per share during the quarter [8] Q&A Session Summary Question: How do you feel about funding costs in the current environment? - Management acknowledged that funding costs are increasing and they are cautiously raising loan rates to maintain long-term interest margins [26] Question: Can you discuss new loan pricing in recreational and home improvement segments? - Management indicated that they have started to raise interest rates on new home improvement loans and anticipate doing the same for recreational loans [28] Question: Has the outlook for RVs changed recently? - Management noted that while there have been reports of lower RV sales, they have not seen a significant slowdown in loan volume [29] Question: What are the drivers of expenses in the current environment? - Management highlighted competition for employees in Salt Lake City, leading to potential increases in salaries and professional fees [32] Question: Can you discuss the Covered Holdings relationship in the context of the fintech strategy? - Management described Covered as a strategic partner with a strong business model, expecting to grow this segment further [36] Question: What is the outlook for medallion collections? - Management stated that the $13.1 million collected is significant but noted that collections can be lumpy and difficult to replicate [50] Question: How do you view the remaining $25 million in the buyback program? - Management expressed optimism about repurchases while balancing the need for capital to grow the business [58] Question: How should we approach credit normalization in this environment? - Management indicated that while charge-offs are currently low, they expect normalization to occur eventually [65]

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, 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) DELAWARE 04-3291176 (State of Incorporati ...