[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 ...

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, 2021 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 ( ...

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 September 30, 2021 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 Incorpo ...

Medallion Financial Corp. (NASDAQ:MFIN) Q3 2021 Earnings Conference Call November 2, 2021 9:00 AM ET Company Participants Ken Cooper - Investor Relations Andrew Murstein - President and Chief Operating Officer Larry Hall - Chief Financial Officer Anthony Cutrone - Executive Vice President and Chief Financial Officer Conference Call Participants Steve Moss - B. Riley Alex Twerdahl - Piper Sandler Bill Dezellem - Tieton Capital Management Operator Greetings and welcome to the Medallion Financial Third Quarter ...

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, 2021 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 for the quarter was $10.3 million, with net interest income increasing by 5% to $37.4 million, reflecting a strong net interest margin of 8.84% [5][6] - The total provision for loan losses was a benefit of $700,000 compared to a $3 million expense in the previous quarter, indicating a significant improvement in loan loss management [16][19] - Net cash provided by operating activities increased nearly 41% quarter-over-quarter to $23.4 million from $16.6 million in the same quarter last year [19] Business Line Data and Key Metrics Changes - The gross consumer loan portfolio grew 17% year-over-year to $1.3 billion, with home improvement loans growing nearly 30% [6][9] - The net recreational loan portfolio increased nearly 13%, while the net home improvement portfolio grew over 30% [9][20] - Net income from consumer and commercial lending segments rose to $16.2 million in the second quarter compared to $9 million a year ago [21] Market Data and Key Metrics Changes - The average interest rate for the consumer loan portfolio was 13.14%, down from 14.14% in the previous year, reflecting competitive market conditions [20] - The net commercial lending portfolio was $66.2 million at the end of the second quarter, up from $55.6 million at the end of the first quarter [22] Company Strategy and Development Direction - The company’s growth strategy focuses on three main initiatives: expanding consumer lending, reaccelerating commercial lending growth, and becoming a leaner organization [7][13] - The company is exploring strategic alternatives for non-core assets, including Medallion loans and NASCAR investments, to enhance shareholder value [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued loan growth, attributing it to strong demand in niches like home improvement and recreational lending [34] - The company anticipates that loan losses and recoveries will normalize in the coming quarters, which may lead to an increase in loan loss provisions [16] Other Important Information - The company recorded a gain on extinguishment of debt of $2.9 million and an after-tax gain of $2.4 million from the sale of a portion of its investment in the FinTech company Upgrade [17][18] - The company has launched strategic partnerships within its Medallion Bank subsidiary to enhance loan origination and fee income [25][26] Q&A Session Summary Question: Expense dynamics and outlook for third quarter - Management indicated that year-to-date expenses are comparable to the previous year and expect expenses to remain around $17 million [32] Question: Loan growth trends and timing - Management believes loan growth will continue, driven by strong demand in their niches, particularly due to pandemic-related changes in consumer behavior [34] Question: Non-core assets and potential divestitures - Management is considering divesting non-core assets, including Medallion loans and NASCAR investments, based on favorable proposals [42][43] Question: Gains from FinTech investments - Management expressed hope for more successful investments similar to Upgrade, which yielded significant returns [44] Question: Charge-offs and loan dispositions - Most charge-offs were related to Medallion lending, with a settlement impacting the figures [51] Question: Net charge-offs by category - For the quarter, net charge-offs were $10.9 million for Medallion loans, $300,000 for home improvement, and a net recovery of $500,000 in recreation lending [55] Question: Competitive environment in RV consumer space - Management noted that while yields have decreased, they are focusing on higher credit quality borrowers, which has led to lower rates [56][57]