Medallion Financial (MFIN) investor relations material

Executive summary

• Achieved record total assets surpassing $3.0 billion as of June 30, 2026, up from $2.88 billion a year ago.

• Loan originations increased significantly, with $611.6 million in Q2 2026 (up 63% YoY), driven by recreation and strategic partnership segments.

• Net income attributable to stockholders was $7.4 million ($0.31 per share), down from $11.1 million ($0.46 per share) in the prior year quarter, reflecting lower equity investment gains and higher credit loss provisions.

• Net interest income hit a record $57.2 million for Q2 2026, with net interest margin maintained near 8%.

• Dividend increased to $0.14 per share per quarter, with share repurchases totaling nearly 780,000 shares at a discount to book value.

Financial highlights

• Total loans reached $2.79 billion, up 12.5% year-over-year, with book value per share at $17.62 and tangible book value at $12.17.

• Net interest margin on gross loans was 7.94%; on net loans, 8.28% for Q2 2026.

• Provision for credit losses was $22.3 million for Q2, with net charge-offs at $16.3 million (2.43% of average loans).

• Operating expenses increased to $25 million for Q2, mainly due to higher employee and servicing costs.

• Quarterly cash dividend of $0.14 per share declared and paid.

Outlook and guidance

• Management expects continued profitable growth through disciplined underwriting, strong funding, and expanding strategic partnerships.

• Loan origination volumes expected to remain strong, with Q2 and Q3 as seasonally strongest quarters.

• Targeting mid-teens loan growth for the full year, with some seasonal slowdown expected in late Q3.

• Focus remains on optimizing loan mix, maintaining high net interest margins, and investing in technology.

• The company continues to evaluate strategic alternatives for its banking subsidiary, including a potential IPO or sale.