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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (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 March 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) DELAWARE 04-3291176 ( ...

Medallion Financial Corp (NASDAQ:MFIN) Q1 2021 Earnings Conference Call May 4, 2021 9:00 AM ET Company Participants Andrew Murstein - President & COO Larry Hall - SVP & CFO Conference Call Participants Alex Twerdahl - Piper Sandler & Co. Stephen Moss - B. Riley Securities Michael Grondahl - Northland Capital Markets Operator Good morning, and welcome everyone to Medallion Financial's 2021 First Quarter Earnings Call. By now, everyone should have access to the earnings announcement, which was released prior ...

Part I [Our Business](index=3&type=section&id=ITEM%201.%20OUR%20BUSINESS) The company has strategically shifted from taxi medallion financing to consumer lending, which now constitutes the majority of its loan portfolio - The company has transitioned its strategic focus away from medallion lending towards its growing consumer finance portfolio, originated through Medallion Bank[15](index=15&type=chunk) - Effective April 2, 2018, the company withdrew its election to be regulated as a Business Development Company (BDC), leading to a change in financial reporting to consolidate its subsidiaries, including Medallion Bank[19](index=19&type=chunk)[20](index=20&type=chunk) Net Loans Receivable by Segment (as of Dec 31, 2020) | Segment | Loans ($ thousands) | Allowance for Loan Loss ($ thousands) | Net Loans Receivable ($ thousands) | | :--- | :--- | :--- | :--- | | Recreation | 792,686 | 27,348 | 765,338 | | Home improvement | 334,033 | 5,157 | 328,876 | | Commercial | 65,327 | — | 65,327 | | Medallion | 37,768 | 25,043 | 12,725 | | **Total** | **1,229,838** | **57,548** | **1,172,290** | [Consumer Loans](index=4&type=section&id=Consumer%20Loans) This primary growth segment, comprising 93% of net loans, focuses on recreation and home improvement lending - Combined consumer loans outstanding grew to **$1.09 billion** at the end of 2020, making up **93%** of the company's net loans receivable, compared to $940 million (84%) at the end of 2019[23](index=23&type=chunk) - Recreation lending is a significant source of income, accounting for **76%** of the company's interest income for the twelve months ended December 31, 2020[24](index=24&type=chunk) Recreation Lending Portfolio Characteristics (as of Dec 31, 2020) | Metric | Value | | :--- | :--- | | Average Loan Size | ~$14,700 | | Average Term at Origination | ~11 years | | Weighted Average Remaining Term | 8.9 years | | Average Payoff Time | 3.3 years | | Top Collateral Types | RVs (60%), Boats (19%) | | Top State Concentrations | Texas (17%), California (10%), Florida (9%) | Home Improvement Lending Portfolio Characteristics (as of Dec 31, 2020) | Metric | Value | | :--- | :--- | | Average Loan Size | ~$16,000 | | Average Term at Origination | ~14 years | | Weighted Average Remaining Term | 11.5 years | | Average Payoff Time | 2.9 years | | Top Collateral Types | Swimming pools (27%), Roofs (24%) | | Top State Concentrations | Florida (11%), Texas (11%), Ohio (9%) | [Commercial Loans](index=5&type=section&id=Commercial%20Loans) The commercial loan segment provides higher-yielding mezzanine financing to businesses and comprised 6% of net loans receivable at year-end 2020 - Commercial loans totaled **$65.3 million**, or **6%** of net loans receivable, as of December 31, 2020[33](index=33&type=chunk) - The company focuses its marketing on manufacturing, professional, scientific, and technical services, with over **53%** of these loans located in the Midwest[35](index=35&type=chunk) - These loans generally range from **$2 million to $5 million** at origination and often include an equity or partnership stake[35](index=35&type=chunk) [Medallion Loans](index=6&type=section&id=Medallion%20Loans) The legacy medallion loan portfolio has significantly declined to 1% of net loans and is entirely on nonaccrual status due to market challenges - The net medallion loan portfolio decreased to **$12.7 million** (1% of net loans) at year-end 2020 from $105.0 million (10% of net loans) at year-end 2019[37](index=37&type=chunk) - The entire medallion loan portfolio has been placed on **nonaccrual**, and an allowance for loan losses has been recorded to mitigate potential future losses[39](index=39&type=chunk) Estimated Medallion Values (Net of Liquidation Costs, as of Dec 31, 2020) | Market | Estimated Value | | :--- | :--- | | New York City | $79,500 | | Newark | $108,700 | | Chicago | $18,500 | | Boston | $18,500 | | Cambridge | $3,250 | [Our Strategy](index=7&type=section&id=Our%20Strategy) The company's strategy centers on niche industries, disciplined underwriting, cost reduction, and leveraging fintech partnerships - Core strategies include capitalizing on dealer/broker relationships, focusing on niche industries, disciplined underwriting, and leveraging management experience[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - Recent strategic initiatives include launching a fintech partnership program, implementing cost-cutting measures (e.g., **21% headcount reduction** at parent company), and exiting non-core investments[52](index=52&type=chunk)[53](index=53&type=chunk)[55](index=55&type=chunk) [Regulation](index=12&type=section&id=Regulation) The company and its subsidiaries operate under a complex regulatory framework, with oversight from the FDIC, Utah DFI, and the SBA - Medallion Bank is regulated by the FDIC and the Utah Department of Financial Institutions (Utah DFI)[85](index=85&type=chunk) - The Bank is subject to US Basel III capital rules and must maintain a capital conservation buffer of 2.5% to avoid restrictions on capital distributions; a 2003 agreement with the FDIC also requires it to maintain a **15% leverage ratio**[86](index=86&type=chunk)[89](index=89&type=chunk)[97](index=97&type=chunk) - The Bank relies heavily on brokered deposits for funding, which requires it to remain **"well-capitalized"** under FDIC regulations to accept them without limitation[100](index=100&type=chunk) - Subsidiaries Medallion Funding, Medallion Capital, and Freshstart are licensed and regulated by the Small Business Administration (SBA) as SBICs[122](index=122&type=chunk) [Risk Factors](index=20&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant risks from the COVID-19 pandemic, its concentration in consumer lending, and its reliance on brokered deposits - The COVID-19 pandemic poses a material risk to the business, particularly given the concentration in consumer lending, which is sensitive to unemployment and discretionary spending; the pandemic has also severely impacted the taxi industry, leading to all medallion loans being placed on nonaccrual[141](index=141&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) - Heavy concentration in consumer lending makes the company susceptible to macroeconomic downturns affecting consumer credit and spending[150](index=150&type=chunk) - Competition from ride-sharing apps has materially and adversely affected the taxi industry, leading to significant decreases in the value of taxi medallions, which serve as collateral for the legacy loan portfolio[160](index=160&type=chunk)[162](index=162&type=chunk) - Medallion Bank's reliance on brokered deposits for funding is a key risk; an inability to accept these deposits, which would occur if the Bank fails to remain **"well-capitalized,"** would materially harm liquidity and operations[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) - The company operates in a highly regulated environment, and changes in banking or consumer protection laws could significantly increase costs and adversely affect operations[189](index=189&type=chunk)[194](index=194&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT'S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's stock trades on NASDAQ, dividends are suspended to support growth, and a stock repurchase program remains authorized - The company's common stock is quoted on NASDAQ under the symbol **"MFIN"**[249](index=249&type=chunk) - No dividends have been paid since 2016, and the company does not anticipate paying dividends in the near future[250](index=250&type=chunk) - The company did not repurchase any shares in the fourth quarter of 2020; approximately **$22.9 million** remains authorized for repurchase under its existing program[254](index=254&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=ITEM%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the strategic shift to consumer lending, the financial impact of COVID-19, and key areas of focus like liquidity and risk management - The company's strategic focus is on its growing consumer loan portfolios (recreation and home improvement), which represented **93%** of the net loan portfolio as of December 31, 2020[257](index=257&type=chunk) - Due to the impact of COVID-19, all medallion loans were deemed impaired, placed on nonaccrual, and written down to net collateral value in the third quarter of 2020, resulting in a provision increase of approximately **$25.9 million** and a collateral write-down of **$20.1 million**[271](index=271&type=chunk) Consolidated Results of Operations Comparison | Metric ($ thousands) | FY 2020 | FY 2019 | | :--- | :--- | :--- | | Total Interest Income | 144,962 | 132,562 | | Net Interest Income | 110,811 | 97,517 | | Provision for Loan Losses | 69,817 | 47,386 | | Net Loss Attributable to Shareholders | (34,783) | (1,762) | | Diluted EPS | ($1.42) | ($0.07) | [Critical Accounting Policies and Estimates](index=39&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Key accounting policies involve significant management judgment, particularly for the Allowance for Loan Losses and valuation of assets - The **Allowance for Loan Losses** requires complex judgments based on historical loss rates, collateral values, economic conditions, and other qualitative factors; this evaluation is inherently subjective[278](index=278&type=chunk)[279](index=279&type=chunk) - **Medallion Loan Collateral Valuation** is derived from analyzing recent market transfer activity and, when necessary, discounted cash flow models, due to low transaction volumes[282](index=282&type=chunk) - **Goodwill and Intangible Assets**, which arose from the 2018 change in accounting, are tested annually for impairment using qualitative and quantitative analyses[284](index=284&type=chunk) [Segment Results](index=49&type=section&id=Segment%20Results) Consumer lending segments were profitable in 2020, while the legacy Medallion Lending segment incurred a substantial net loss Net Income (Loss) by Segment (FY 2020) | Segment | Net Income (Loss) ($ thousands) | | :--- | :--- | | Recreation Lending | 34,612 | | Home Improvement Lending | 6,077 | | Commercial Lending | 893 | | Medallion Lending | (58,250) | | RPAC | 2,651 | | Corporate and Other Investments | (12,890) | [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) The company relies on brokered deposits and debt for liquidity and faces significant near-term debt maturities - Primary liquidity sources include brokered CDs, bank credit facilities, SBA debentures, and private debt placements[382](index=382&type=chunk)[383](index=383&type=chunk) - The company faces significant near-term maturities, with approximately **$730 million** due in 2021-2022, including almost $635 million in brokered CDs[395](index=395&type=chunk) - In late 2020 and early 2021, the company completed several private placements of senior notes to raise capital for general corporate purposes and debt repayment[384](index=384&type=chunk)[386](index=386&type=chunk) Total Debt Outstanding (as of Dec 31, 2020) | Debt Type | Balance ($ thousands) | Percentage | Weighted Avg. Rate | | :--- | :--- | :--- | :--- | | Deposits | 1,068,072 | 81% | 1.71% | | Retail and privately placed notes | 103,225 | 8% | 8.25% | | SBA debentures and borrowings | 68,008 | 5% | 3.36% | | Preferred securities | 33,000 | 3% | 2.35% | | Notes payable to banks | 31,261 | 2% | 3.67% | | Other borrowings | 8,689 | 1% | 1.91% | | **Total** | **1,312,255** | **100%** | **2.37%** | [Controls and Procedures](index=62&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management and the independent auditor concluded that the company's disclosure controls and internal controls over financial reporting were effective - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[412](index=412&type=chunk) - Management assessed internal control over financial reporting using the COSO framework and concluded it was effective as of December 31, 2020[415](index=415&type=chunk) - The independent auditor, Mazars USA LLP, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2020[420](index=420&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Compensation, and Security Ownership](index=65&type=section&id=ITEMS%2010-14) Required disclosures on governance, compensation, and ownership are incorporated by reference from the company's Proxy Statement - Information for the following sections is incorporated by reference from the company's forthcoming Definitive Proxy Statement: * Item 10: Directors, Executive Officers and Corporate Governance * Item 11: Executive Compensation * Item 12: Security Ownership of Certain Beneficial Owners and Management * Item 13: Certain Relationships and Related Transactions, and Director Independence * Item 14: Principal Accountant Fees and Services[427](index=427&type=chunk)[428](index=428&type=chunk)[429](index=429&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=65&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section provides an index to the consolidated financial statements and a list of all exhibits filed with the report - This section provides the index to the audited consolidated financial statements, which begin on page F-1 of the report[429](index=429&type=chunk) - A detailed list of all exhibits filed with the report is provided, including material contracts, corporate documents, and certifications by the CEO and CFO[432](index=432&type=chunk)[433](index=433&type=chunk)[434](index=434&type=chunk)[435](index=435&type=chunk)

Financial Data and Key Metrics Changes - Net income for Q4 2020 was $6.5 million or $0.26 per share, compared to a net loss of $500,000 or $0.02 per share in Q4 2019, marking a significant recovery [16] - Total net loss for 2020 was $34.8 million, compared to a net loss of $1.8 million in 2019 [16] - Cash flow from operations increased by 21% year-over-year to $79 million in 2020, up from $65 million in 2019 [17] - The net interest margin for Q4 2020 was 8.89%, the strongest in 13 years, while the full-year net interest margin was 8.65% [16][17] Business Line Data and Key Metrics Changes - Net Medallion loans dropped 88% from $105 million at the end of 2019 to $12.7 million at the end of 2020 [7][18] - The consumer lending segment generated net income of $40.7 million for 2020, compared to $29.7 million in 2019, while the commercial lending segment recorded net income of $893,000 for the full year [24] - The consumer and home improvement lending segments contributed $48 million in annual net income to the bank, with $15 million in Q4 2020, both the highest since 2004 [13] Market Data and Key Metrics Changes - Total Medallion exposure comprised just 4% of total assets at year-end 2020, down from 10% at the end of 2019 [14][18] - COVID-related payment deferrals were largely resolved, with consumer loans in a state of deferral at $6.7 million or 0.6% as of December 31, 2020 [21] Company Strategy and Development Direction - The company aims to focus on consumer lending and the bank's growth, deemphasizing the Medallion business, which now represents a small fraction of total assets [59][61] - The partnership program with FinTech companies is expected to grow, with the first partnership showing improved performance in 2021 [9][58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a gradual recovery in performance within the overall portfolio in 2021, as many companies are returning to pre-COVID levels [11] - The company anticipates continued strong demand in the consumer lending segments, with origination growth expected to remain robust [54] Other Important Information - The provision for loan loss benefit was $3.4 million in Q4 2020, compared to a provision for loan losses of $10.5 million in the prior year quarter [19] - The average interest rate for the consumer loan portfolio was 13.64% in Q4 2020, slightly down from 13.87% in the previous quarter [23] Q&A Session Summary Question: Can you go through the moving parts of the loan loss reserve during the quarter? - The consumer segment had about a $3 million provision for the quarter, with the home improvement segment at $737,000 and a benefit of $7.2 million in the Medallion segment due to recoveries [30] Question: What should we expect for normalized provision levels for 2021? - Management expects provision levels to be similar to past levels, with growth in the consumer business [31][32] Question: Have you considered selling the Medallion portfolio? - The company is open to selling the Medallion portfolio if the price is right, focusing on the future of the bank and consumer lending [33] Question: How should we think about run rate expenses for 2021? - Management anticipates expenses will start to drop as they continue to manage costs and evaluate the impact of furloughs [34] Question: What trends are you seeing in loan pricing for recreation and home improvement? - Rates remain strong, with consumer loans still yielding over 14%, while home improvement has seen slight competition [41] Question: Can you provide insights on recoveries from the Medallion portfolio? - Recoveries were driven by a few borrowers, and the company remains hopeful for continued improvements [50] Question: What are your priorities for 2021? - The company aims to continue focusing on profitable business lines and maintaining growth in consumer lending [59][61]