Reports 56% Increase in Net Income as Compared to the Prior Year Quarter

Announces Third Quarter 2025 Dividend of $0.12 Per Share

NEW YORK, July 30, 2025 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ:MFIN, "Medallion" or the "Company")), a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic partners, announced today its financial results for the second quarter ended June 30, 2025.

2025 Second Quarter Highlights

Net income grew 56% to $11.1 million, or $0.46 per share, compared to $7.1 million, or $0.30 per share, in the prior year quarter.
Net interest income grew 7% to $53.4 million from $49.9 million in the prior year quarter.
Net interest margin ("NIM") on net loans was 8.42%, consistent with 8.42% in the prior year quarter, and NIM on gross loans was 8.09%, compared to 8.12% in the prior year quarter.
Loan originations grew to $375.0 million, compared to $309.1 million in the prior year quarter, and included $168.6 million of strategic partnership loan originations in the current quarter compared to $24.3 million in the prior year quarter.
The loan portfolio as of June 30, 2025 was $2.485 billion, up 4% compared to $2.386 billion a year ago.
Credit loss provision increased to $21.6 million from $18.6 million in the prior year quarter.
Net book value per share as of June 30, 2025 was $16.77 per share, up 10% from $15.25 a year ago.
The Company declared and paid a quarterly cash dividend of $0.12 per share.
The Company repurchased 48,166 shares of its common stock at an average cost of $9.44 per share for $0.5 million.

Executive Commentary

Andrew Murstein, President and Chief Operating Officer of Medallion Financial, commented, "We are pleased with the strong results we delivered in the second quarter of 2025, with a 56% increase in net income year-over-year. This performance reflects the strength of our core lending businesses and disciplined execution across our business lines.

During the quarter, we saw meaningful contributions from our recreation, home improvement and commercial lending segments, supported by solid portfolio originations and higher interest income. Over the past eight quarters, our commercial division has consistently generated net gains from equity investments, totaling $27.6 million for the two-year period, with six of the past eight quarters having significant gains. These equity gains are a result of years of strategic investment and highlight the long-term value embedded in our commercial portfolio. Although we cannot predict when and if these gains will occur, with a portfolio of more than 30 equity investments, represented by $8.1 million on our balance sheet, we believe we will experience additional gains in the future. In addition, we are pleased that our strategic partners loan program in Medallion Bank continues to grow with $169 million in loan originations in the quarter compared to $24 million a year ago.

Overall, we are encouraged by the momentum in our business. With the recent preferred offering at Medallion Bank, we believe we are well-positioned for growth and to continue generating strong returns for our shareholders."

Business Segment Highlights

Recreation Lending Segment

Originations were $142.8 million during the quarter, compared to $209.6 million a year ago.
Recreation loans, including loans held for investment and loans held for sale, grew 3% to $1.546 billion, or 62% of total loans, as of June 30, 2025, compared to $1.497 billion a year ago.
Average loan size was $21,000 with a weighted average FICO score, measured at the time of loan origination, of 684.
Interest income grew 8% to $51.1 million for the quarter, from $47.5 million in the prior year quarter.
The average interest rate was 15.12% at quarter-end, 15.10% excluding loans held for sale, compared to 14.80% a year ago.
Recreation loans 90 days or more past due were $7.3 million, or 0.49% of gross recreation loans, as of June 30, 2025, compared to $5.9 million, or 0.41%, a year ago.
Allowance for credit loss was 5.05% at quarter-end for loans held for investment, compared to 4.35% a year ago.

Home Improvement Lending Segment

Originations were $54.3 million during the quarter, compared to $68.0 million a year ago.
Home improvement loans grew 4% to $803.5 million, or 32% of total loans, as of June 30, 2025, compared to $773.2 million a year ago.
Average loan size was $22,000 with a weighted average FICO score, measured at the time of loan origination, of 769.
Interest income grew 14% to $20.1 million for the quarter, from $17.7 million in the prior year quarter.
The average interest rate was 9.87% at quarter-end, compared to 9.71% a year ago.
Home improvement loans 90 days or more past due were $1.3 million, or 0.16% of gross home improvement loans, as of June 30, 2025, compared to $1.3 million, or 0.17%, a year ago.
Allowance for credit loss was 2.54% at quarter-end, compared to 2.38% a year ago.

Commercial Lending Segment

Originations were $9.4 million during the quarter.
Commercial loans grew to $121.4 million at June 30, 2025, compared to $110.2 million a year ago.
Average loan size was $3.6 million, invested in 34 portfolio companies.
For the quarter ended June 30, 2025, net gains recognized with respect to equity investments were $6.1 million.
The average interest rate on the portfolio was 13.43%, compared to 13.05% a year ago.

Strategic Partnerships

Originations were $168.6 million during the quarter, compared to $24.3 million a year ago.
Total strategic partnership loans held as of quarter end were $12.3 million.
Fees generated from strategic partnerships totaled $0.8 million for the quarter, as compared to $0.5 million for the quarter ended June 30, 2024.
Average loan holding period of strategic partnership loans was 5 days.

Taxi Medallion Lending Segment

The Company collected $2.3 million of cash on taxi medallion-related assets during the quarter, which resulted in net recoveries and gains of $1.4 million.
Total net taxi medallion assets declined to $5.9 million, a 41% reduction from a year ago, and represented less than 0.3% of the Company's total assets, as of June 30, 2025.

Loan Portfolio

The following table provides information regarding the composition of our loan portfolio for the periods presented:

	June 30, 2025				December 31, 2024
(Dollars in thousands)	Amount		As a Percent of Total Loans		Amount		As a Percent 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	*
Total loans		2,412,561	97			2,362,796	95
Loans held for sale, at lower of amortized cost or fair value:
Recreation		60,205	2			120,840	5
Strategic partnership		12,285	*			7,386	*
Total loans held for sale, at lower of amortized cost or fair value		72,490	3			128,226	5
Total loans and loans held for sale	$	2,485,051	100	%	$	2,491,022	100	%

(*) Less than 1%.

Balance Sheet

Cash and cash equivalents, including investment securities, at June 30, 2025 were $213.5 million, compared to $213.8 million at June 30, 2024.
As of June 30, 2025, total assets amounted to $2.880 billion, up from $2.761 billion at June 30, 2024. The increase is largely due to an increase in prepaid expense which is a result of the redemption of Medallion Bank's Series F preferred stock on July 1, 2025.
As of June 30, 2025, total liabilities amounted to $2.347 billion, up slightly from $2.338 billion a year ago.

Capital Allocation

Quarterly Dividend

The Board of Directors declared a quarterly dividend of $0.12 per share, payable on August 29, 2025, to shareholders of record at the close of business on August 15, 2025. This dividend amount remains unchanged from the $0.12 per share paid in the second quarter of 2025, and 20% higher than the same quarter last year.

Dividends Announced	Amount Per Share		Record Date	Payment Date
Q3 2025	$	0.12	8/15/2025	8/29/2025
Q2 2025		0.12	5/15/2025	5/30/2025
Q1 2025		0.11	3/17/2025	3/31/2025
Total: Year 2025 (Year to Date)		0.35
Total: Year 2024		0.41
Total: Year 2023		0.34
Total: Year 2022 *		0.32

(*) Dividend reinstated in Q1 2022.

Stock Repurchase Plan

During the three months ended June 30, 2025, the Company repurchased 48,166 shares of its common stock at an average cost of $9.44 per share for $0.5 million.
As of June 30, 2025, the Company had $14.4 million remaining under its $40 million stock repurchase program.

Conference Call Information

The Company will host a conference call to discuss its second quarter financial results tomorrow, Thursday, July 31, 2025, at 9:00 a.m. Eastern time.

In connection with its earnings release, the Company has updated its quarterly supplement presentation, which is now available at www.medallion.com.

How to Participate

Date: Thursday, July 31, 2025
Time: 9:00 a.m. Eastern time
Dial-in number: (412) 317-0504
Live webcast: Link to Webcast of 2Q25 Earnings Call

A link to the live audio webcast of the conference call will also be available at the Company's IR website.

Replay Information

The conference call replay will be available following the end of the call through Thursday, August 7, 2025

Dial-in: (412) 317-6671
Passcode: 1020 1134

Additionally, the webcast replay will be available at the Company's IR website.

About Medallion Financial Corp.

Medallion Financial Corp. (NASDAQ:MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com.

Forward-Looking Statements

Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and our growth strategy. These statements are often, but not always, made using words or phrases such as "will" and "continue" or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, expectations regarding our loan portfolio, including collections on our taxi medallion loans, the potential for future asset growth, and market share opportunities. Medallion's actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, whether inflation or the risk of recession, the effects of tariffs, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion's control. In addition to risks relating to the current economy, for a description of certain risks to which Medallion is or may be subject, please refer to the factors discussed under the heading "Risk Factors" in Medallion's 2024 Annual Report on Form 10-K.

Company Contact:

Investor Relations

InvestorRelations@medallion.com

212-328-2176

Investor Relations

The Equity Group Inc.

Lena Cati

lcati@theequitygroup.com

(212) 836-9611

Val Ferraro

vferraro@theequitygroup.com

(212) 836-9633


MEDALLION FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands, except share 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, at lower of amortized cost or fair value		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 asset, 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 liabilities, 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 interest in consolidated subsidiaries		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
Number of shares outstanding		23,246,593			23,135,624			23,211,990

Book value per share	$	16.77		$	16.00		$	15.25

MEDALLION FINANCIAL CORP.‌ CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)‌

	Three Months Ended June 30,					Six Months Ended June 30,
(Dollars in thousands, except share and per share data)	2025		2024			2025		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
Gain (loss) on equity investments, net		6,096		(512	)		15,526		3,655
Gain on sale of recreation loans		1,304		—			1,304		—
Gain on taxi medallion assets, net		749		242			1,592		830
Strategic partnership 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 fee costs, 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 taxes		19,472		12,395			39,711		30,289
Income tax provision		5,805		3,782			12,518		10,140
Net income after taxes		13,667		8,613			27,193		20,149
Less: income attributable to the non-controlling interest		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
Weighted average common shares outstanding
Basic		22,783,947		22,598,102			22,677,961		22,619,743
Diluted		24,058,084		23,453,162			23,978,214		23,609,104
Dividends declared per common share	$	0.12	$	0.10		$	0.24	$	0.20

Medallion Financial Corp. Reports 2025 Second Quarter Results