EX-99.1 2 mfin-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

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FOR IMMEDIATE RELEASE:

MEDALLION FINANCIAL CORP. REPORTS 2025 SECOND QUARTER RESULTS

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, NY – July 30, 2025 – 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.

 

2

 

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.

 

3

 

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

4

 

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

 

 

5

 

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

 

 

6