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, 2026

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 Incorporation)	(IRS Employer Identification No.)

667 MADISON AVENUE, 22nd Floor

NEW YORK, New York 10065

(Address of Principal Executive Offices) (Zip Code)

(212) 328-2100

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbols	Name of each exchange on which registered
Common Stock, par value $0.01 per share	MFIN	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

The number of outstanding shares of registrant’s Common Stock, par value $0.01, as of August 4, 2026, was 22,960,249.

MEDALLION FINANCIAL CORP.

FORM 10-Q

TABLE OF CONTENTS

	Page
PART I – FINANCIAL INFORMATION	3
ITEM 1. FINANCIAL STATEMENTS	3
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	38
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	60
ITEM 4. CONTROLS AND PROCEDURES	60
PART II—OTHER INFORMATION	60
ITEM 1. LEGAL PROCEEDINGS	60
ITEM 1A. RISK FACTORS	60
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	60
ITEM 5. OTHER INFORMATION	60
ITEM 6. EXHIBITS	61
SIGNATURES	62

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

The following discussion should be read in conjunction with our financial statements and the notes to those statements and other financial information appearing elsewhere in this report.

This report contains forward-looking statements relating to future events and future performance applicable to us within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act, including, without limitation, statements regarding our expectations, beliefs, intentions, or future strategies that are signified by the words expects, anticipates, intends, believes, or similar language. In connection with certain forward-looking statements contained in this Form 10-Q and those that may be made in the future by or on behalf of the Company, the Company notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. The forward-looking statements contained in this Form 10-Q were prepared by management and are qualified by, and subject to, significant business, economic, competitive, regulatory, and other uncertainties and contingencies, including those relating to the U.S. and global economies, including the current inflationary environment, the impact of tariffs, the risk of recession and the impact of the geopolitical environment (including the conflict with Iran), all of which are difficult or impossible to predict, and many of which are beyond control of the Company.

All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statements. The statements have not been audited by, examined by, compiled by, or subjected to agreed-upon procedures by independent accountants, and no third-party has independently verified or reviewed such statements. Readers of this Form 10-Q should consider these facts in evaluating the information contained herein. In addition, the business and operations of the Company are subject to substantial risks which increase the uncertainty inherent in the forward-looking statements contained in this Form 10-Q. The inclusion of the forward-looking statements contained in this Form 10-Q should not be regarded as a representation by the Company or any other person that the forward-looking statements contained in this Form 10-Q will be achieved.

In light of the foregoing, readers of this Form 10-Q are cautioned not to place undue reliance on the forward-looking statements contained herein. You should consider these risks and those described under Risk Factors in the Company’s Annual Report on Form 10-K and others that are detailed in the other reports that the Company files from time to time with the Securities and Exchange Commission, or the SEC.

Page 2 of 62

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BASIS OF PREPARATION

We, Medallion Financial Corp., or the Company, are a specialty finance company organized as a Delaware corporation. Our strategic focus is operating and growing our consumer finance and commercial lending businesses. Our total assets were $3.19 billion and $2.96 billion as of June 30, 2026 and December 31, 2025.

We conduct our business through various wholly-owned subsidiaries including:

•Medallion Bank, or the Bank, a Federal Deposit Insurance Corporation, or FDIC, insured industrial bank that originates consumer loans, raises deposits and conducts other banking activities;

•Medallion Capital, Inc., or Medallion Capital, a Small Business Investment Company, or SBIC, which operates a mezzanine financing business; and

•Freshstart Venture Capital Corp., or Freshstart, which historically originated and serviced taxi medallion and commercial loans.

Our consolidated balance sheets as of June 30, 2026, and the related consolidated statements of operations, consolidated statements of other comprehensive income, consolidated statements of stockholders’ equity and cash flows for the three and six months then ended included in Item 1 have been prepared by us, without audit, pursuant to the rules and regulations of the SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying consolidated financial statements include all adjustments, which are of a normal and recurring nature, necessary to present fairly our consolidated financial position and results of operations. The results of operations for the three and six months ended June 30, 2026 may not be indicative of future performance. These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025.

Page 3 of 62

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(Dollars in thousands, except share and per share data)	June 30, 2026			December 31, 2025
Assets
Cash and cash equivalents	$	172,581		$	136,266
Federal funds sold		33,410			65,298
Investment securities		69,933			60,183
Equity investments		8,734			8,099
Loans held for sale, at lower of amortized cost or fair value		21,376			15,144
Loans		2,773,366			2,551,705
Allowance for credit losses		(122,701	)		(114,789	)
Net loans receivable		2,650,665			2,436,916
Goodwill		150,803			150,803
Intangible assets, net		16,979			17,701
Accrued interest receivable		20,923			19,401
Property, equipment, and right-of-use lease assets, net		8,666			11,861
Loan collateral in process of foreclosure		6,646			7,333
Income tax receivable		1,143			—
Other assets		31,726			26,459
Total assets	$	3,193,585		$	2,955,464
Liabilities
Deposits (1)	$	2,293,935		$	2,084,265
Long-term debt (2)		287,547			215,987
Short-term debt		54,500			95,250
Deferred tax liabilities, net (3)		19,973			19,596
Operating lease liabilities		3,876			5,041
Accrued interest payable		6,101			6,319
Income tax payable		—			759
Accounts payable and accrued expenses (4)		22,206			20,201
Total liabilities		2,688,138			2,447,418
Commitments and contingencies (5)
Stockholders’ equity
Preferred stock (1,000,000 shares of $0.01 par value stock authorized-none outstanding)		—			—
Common stock (50,000,000 shares of $0.01 par value stock authorized - 30,102,353 shares    at June 30, 2026 and 29,592,592 shares at December 31, 2025 issued)		301			296
Additional paid in capital		298,799			299,458
Treasury stock (7,060,708 shares at June 30, 2026 and 6,280,909 at December 31, 2025)		(58,814	)		(51,130	)
Accumulated other comprehensive loss		(2,859	)		(2,381	)
Retained earnings		168,591			162,374
Total stockholders’ equity		406,018			408,617
Non-controlling interest in consolidated subsidiaries		99,429			99,429
Total equity		505,447			508,046
Total liabilities and equity	$	3,193,585		$	2,955,464
Number of shares outstanding		23,041,645			23,311,683
Book value per share	$	17.62		$	17.53

(1)Includes $5.5 million and $5.2 million of deferred financing costs as of June 30, 2026 and December 31, 2025. Refer to Note 5 for more details.

(2)Includes $4.7 million and $3.3 million of deferred financing costs as of June 30, 2026 and December 31, 2025. Refer to Note 5 for more details.

(3)Includes $42.2 million and $42.4 million of deferred tax liabilities related to goodwill and intangible assets as of June 30, 2026 and December 31, 2025. Refer to Note 7 for more details.

(4)Includes the short-term portion of lease liabilities of $0.5 million and $2.2 million as of June 30, 2026 and December 31, 2025. Refer to Note 6 for more details.

(5)Refer to Note 10 for more details.

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 4 of 62

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)	2026		2025		2026		2025
Interest and fees on loans	$	82,285	$	75,528	$	159,621	$	149,265
Non-loan interest and dividend income		2,092		1,914		3,824		3,602
Total interest income		84,377		77,442		163,445		152,867
Interest on deposits		22,122		19,608		42,858		39,223
Interest on long-term debt		4,973		3,916		8,781		7,606
Interest on short-term borrowings		35		548		500		1,256
Total interest expense		27,130		24,072		52,139		48,085
Net interest income		57,247		53,370		111,306		104,782
Provision for credit losses		22,273		21,562		44,749		43,576
Net interest income after provision for credit losses		34,974		31,808		66,557		61,206
Other income
Gain on taxi medallion assets, net		1,316		749		2,415		1,592
Strategic partnership fees		1,136		787		1,959		1,472
Gain on sale of recreation loans		1,281		1,304		1,281		1,304
Gain on equity investments, net		232		6,096		545		15,526
Other income		511		273		684		914
Total other income, net		4,476		9,209		6,884		20,808
Other expenses
Salaries and employee benefits		11,247		10,148		22,247		20,141
Loan servicing fees		4,366		2,899		7,903		5,716
Collection costs		1,931		2,033		3,868		3,772
Professional fee costs, net		2,088		1,187		3,340		2,937
Regulatory fees		1,002		1,109		1,981		1,930
Rent expense		698		683		1,395		1,358
Depreciation		656		628		1,288		1,246
Amortization of intangible assets		362		362		723		723
Director compensation		441		424		873		836
Other expenses		2,162		2,072		3,709		3,644
Total other expenses		24,953		21,545		47,327		42,303
Income before income taxes		14,497		19,472		26,114		39,711
Income tax provision		4,717		5,805		9,045		12,518
Net income		9,780		13,667		17,069		27,193
Less: income attributable to the non-controlling interest		2,335		2,598		4,671		4,110
Net income attributable to Medallion Financial Corp.	$	7,445	$	11,069	$	12,398	$	23,083
Basic earnings per share	$	0.32	$	0.49	$	0.53	$	1.02
Diluted earnings per share	$	0.31	$	0.46	$	0.51	$	0.96
Weighted average common shares outstanding
Basic		23,288,732		22,783,947		23,174,870		22,677,961
Diluted		24,013,303		24,058,084		24,280,184		23,978,214

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 5 of 62

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME

(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2026			2025			2026			2025
Net income	$	9,780		$	13,667		$	17,069		$	27,193
Unrealized holding (losses) gains on investment securities arising during the period		(129	)		(124	)		(660	)		763
Tax effect on unrealized (losses) gains on investments		36			35			182			(214	)
Total comprehensive income		9,687			13,578			16,591			27,742
Less: income attributable to the non-controlling interest		2,335			2,598			4,671			4,110
Total comprehensive income attributable to Medallion Financial Corp.	$	7,352		$	10,980		$	11,920		$	23,632

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 6 of 62

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

(Dollars in thousands)	Common Stock Shares			Common Stock			Additional Paid In Capital			Treasury Stock Shares			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive (Loss)			Total Stockholders’ Equity			Non- controlling Interest			Total Equity
Balance at December 31, 2025		29,592,592		$	296		$	299,458			(6,280,909	)	$	(51,130	)	$	162,374		$	(2,381	)	$	408,617		$	99,429		$	508,046
Net income		—			—			—			—			—			4,953			—			4,953			2,336			7,289
Distributions to non-controlling interest		—			—			—			—			—			—			—			—			(2,336	)		(2,336	)
Stock-based compensation expense		—			9			2,066			—			—			—			—			2,075			—			2,075
Exercise of stock options		2,224			—			13			—			—			—			—			13			—			13
Issuance of restricted stock, net		344,206			—			—			—			—			—			—			—			—			—
Issuance in connection with vesting of performance stock units		652,577			—			—			—			—			—			—			—			—			—
Withheld restricted stock for employees' tax obligations		(444,683	)		(4	)		(4,323	)		—			—			—			—			(4,327	)		—			(4,327	)
Forfeiture of restricted stock, net		(1,569	)		—			—			—			—			—			—			—			—			—
Dividends paid on common stock		—			—			—			—			—			(2,862	)		—			(2,862	)		—			(2,862	)
Other comprehensive loss, net of tax		—			—			—			—			—			—			(385	)		(385	)		—			(385	)
Balance at March 31, 2026		30,145,347		$	301		$	297,214			(6,280,909	)	$	(51,130	)	$	164,465		$	(2,766	)	$	408,084		$	99,429		$	507,513
Net income		—			—			—			—			—			7,445			—			7,445			2,335			9,780
Distributions to non-controlling interest		—			—			—			—			—			—			—			—			(2,335	)		(2,335	)
Non-controlling interest equity raised by Medallion Bank		—			—			—			—			—			—			—			—			—			—
Stock-based compensation expense		—			—			1,903			—			—			—			—			1,903			—			1,903
Exercise of stock options		13,154			—			88			—			—			—			—			88			—			88
Forfeiture of restricted stock, net		(33,140	)		—			—			—			—			—			—			—			—			—
Issuance in connection with vesting of restricted stock units		17,762			—			—			—			—			—			—			—			—			—
Withheld restricted stock for employees' tax obligations		(40,770	)		—			(406	)		—			—			—			—			(406	)		—			(406	)
Purchase of common stock		—			—			—			(779,799	)		(7,684	)		—			—			(7,684	)		—			(7,684	)
Dividends paid on common stock		—			—			—			—			—			(3,319	)		—			(3,319	)		—			(3,319	)
Other comprehensive loss, net of tax		—			—			—			—			—			—			(93	)		(93	)		—			(93	)
Balance at June 30, 2026		30,102,353		$	301		$	298,799			(7,060,708	)	$	(58,814	)	$	168,591		$	(2,859	)	$	406,018		$	99,429		$	505,447

Page 7 of 62

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

(Dollars in thousands)	Common Stock Shares			Common Stock		Additional Paid In Capital			Treasury Stock Shares			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity			Non- controlling Interest			Total Equity
Balance at December 31, 2024		29,308,182		$	293	$	293,412			(6,172,558	)	$	(50,144	)	$	130,256		$	(3,647	)	$	370,170		$	68,788		$	438,958
Net income		—			—		—			—			—			12,014			—			12,014			1,512			13,526
Distributions to non-controlling interest		—			—		—			—			—			—			—			—			(1,512	)		(1,512	)
Stock-based compensation expense		—			2		1,686			—			—			—			—			1,688			—			1,688
Exercise of stock options		265			—		1			—			—			—			—			1			—			1
Issuance of restricted stock, net		307,059			—		—			—			—			—			—			—			—			—
Withheld restricted stock for employees' tax obligations		(144,360	)		—		(1,202	)		—			—			—			—			(1,202	)		—			(1,202	)
Forfeiture of restricted stock, net		(3,373	)		—		—			—			—			—			—			—			—			—
Purchase of common stock		—			—		—			(60,185	)		(531	)		—			—			(531	)		—			(531	)
Dividends paid on common stock		—			—		—			—			—			(2,554	)		—			(2,554	)		—			(2,554	)
Other comprehensive income, net of tax		—			—		—			—			—			—			638			638			—			638
Balance at March 31, 2025		29,467,773		$	295	$	293,897			(6,232,743	)	$	(50,675	)	$	139,716		$	(3,009	)	$	380,224		$	68,788		$	449,012
Net income		—			—		—			—			—			11,069			—			11,069			2,598			13,667
Distributions to non-controlling interest		—			—		—			—			—			—			—			—			(1,843	)		(1,843	)
Non-controlling interest equity raised by Medallion Bank		—			—		—			—			—			—			—			—			73,126			73,126
Stock-based compensation expense		—			—		1,681			—			—			—			—			1,681			—			1,681
Exercise of stock options		41,061			—		256			—			—			—			—			256			—			256
Forfeiture of restricted stock, net		(476	)		—		—			—			—			—			—			—			—			—
Issuance in connection with vesting of restricted stock units		19,144			—		—			—			—			—			—			—			—			—
Purchase of common stock		—			—		—			(48,166	)		(455	)		—			—			(455	)		—			(455	)
Dividends paid on common stock		—			—		—			—			—			(2,790	)		—			(2,790	)		—			(2,790	)
Other comprehensive loss, net of tax		—			—		—			—			—			—			(89	)		(89	)		—			(89	)
Balance at June 30, 2025		29,527,502		$	295	$	295,834			(6,280,909	)	$	(51,130	)	$	147,995		$	(3,098	)	$	389,896		$	142,669		$	532,565

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 8 of 62

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended June 30,
(Dollars in thousands)	2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income resulting from operations	$	17,069		$	27,193
Adjustments to reconcile net income resulting from operations to net cash provided by operating activities:
Provision for credit losses		44,749			43,576
Proceeds from sales of strategic partnership loans held for sale		410,850			299,978
Gain on sale of recreation loans		(1,281	)		(1,304	)
Origination of loans held for sale		(417,082	)		(304,877	)
Paid-in-kind interest income		(590	)		(485	)
Depreciation and amortization		4,231			4,218
Amortization of loan origination costs and fees, net		6,664			4,915
(Decrease) increase in deferred and other tax liabilities, net		(1,525	)		3,109
Net gains on equity investments		(545	)		(15,526	)
Stock-based compensation expense		3,978			3,369
(Increase) decrease in accrued interest receivable		(1,522	)		20
Increase in other assets		(6,971	)		(46,399	)
Increase (decrease) in accounts payable and accrued expenses		992			(5,118	)
Decrease in accrued interest payable		(220	)		(2,485	)
Net cash provided by operating activities		58,797			10,184
CASH FLOWS FROM INVESTING ACTIVITIES
Loans originated		(585,785	)		(357,691	)
Proceeds from principal receipts, sales, and maturities of loans		316,458			325,541
Purchases of investments		(13,385	)		(13,550	)
Proceeds from principal receipts, sales, and maturities of investments		2,715			23,985
Proceeds from the sale and principal payments on loan collateral in process of foreclosure		6,725			6,771
Net cash used in investing activities		(273,272	)		(14,944	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from time deposits and funds borrowed		775,678			1,048,514
Repayments of time deposits and funds borrowed		(533,456	)		(1,123,610	)
Non-controlling interest equity raised by Medallion Bank		—			73,126
Cash dividends paid on common stock		(6,333	)		(5,562	)
Distributions to non-controlling interests		(4,671	)		(3,355	)
Payment of withholding taxes on net settlement of vested stock		(4,733	)		(1,202	)
Treasury stock repurchased		(7,684	)		(986	)
Proceeds from the exercise of stock options		101			257
Net cash provided by (used in) financing activities		218,902			(12,818	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		4,427			(17,578	)
Cash and cash equivalents, beginning of period (1)		201,564			169,572
Cash and cash equivalents, end of period (1)	$	205,991		$	151,994
SUPPLEMENTAL INFORMATION
Cash paid during the period for interest	$	50,155		$	48,337
Cash paid during the period for income taxes		10,298			9,665
NON-CASH INVESTING
Loans transferred to loan collateral in process of foreclosure, net	$	6,036		$	5,846

(1)Includes federal funds sold.

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 9 of 62

MEDALLION FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2026

(1) ORGANIZATION OF MEDALLION FINANCIAL CORP. AND ITS SUBSIDIARIES

Medallion Financial Corp., or the Company, is a specialty finance company organized as a Delaware corporation that reports as a bank holding company but is not a bank holding company for regulatory purposes. The Company conducts its business through various wholly-owned subsidiaries including its primary operating company, Medallion Bank, or the Bank, a Federal Deposit Insurance Corporation, or FDIC, insured industrial bank that originates consumer loans, raises deposits, and conducts other banking activities. The Bank is subject to competition from other financial institutions and to the regulations of certain federal and state agencies and undergoes examinations by those agencies. The Bank was formed in May 2002 for the purpose of obtaining an industrial bank charter pursuant to the laws of the State of Utah. The Bank originates consumer loans on a national basis for the purchase of recreational vehicles, or RVs, boats, collector cars, and other consumer recreational equipment and to finance home improvements such as swimming pools, roofs, and windows. The loans are financed primarily with time certificates of deposit which are originated nationally through a variety of brokered deposit relationships.

The Company also conducts business through its subsidiaries Medallion Capital, Inc., or Medallion Capital, a Small Business Investment Company, or SBIC, which conducts a mezzanine financing business; and Freshstart Venture Capital Corp., or Freshstart, which historically originated and serviced taxi medallion and commercial loans. Medallion Capital, an SBIC, is regulated by the Small Business Administration, or SBA. Medallion Capital is financed in part by the SBA.

The Company established a wholly-owned subsidiary, Medallion Financing Trust I, or Fin Trust, for the purpose of issuing unsecured trust preferred securities to investors. Fin Trust is a separate legal and corporate entity with its own creditors who, in any liquidation of Fin Trust, will be entitled to be satisfied out of Fin Trust’s assets prior to any value in Fin Trust becoming available to Fin Trust’s equity holders. The assets of Fin Trust, aggregating $34.9 million at June 30, 2026, are comprised solely of a subordinated note from the Company and are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Fin Trust.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the U.S., or GAAP, requires management to make estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. Accounting estimates and assumptions are those that management considers to be the most critical to an understanding of the consolidated financial statements because they inherently involve significant judgments and uncertainties. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these consolidated financial statements. If such conditions change, it is reasonably possible that the judgments and estimates could change, which may result in future impairments of goodwill and intangible assets, and allowance for credit losses, among other effects.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation.

The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of variable interest entities, or VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest.

Page 10 of 62

Cash, Cash Equivalents, and Restricted Cash

The Company considers all highly liquid instruments with an original purchased maturity of three months or less, federal funds sold, interest-bearing deposits in other banks, and money market mutual funds to be cash equivalents. A non-interest-bearing compensating balance of $0.9 million and $0.7 million as of June 30, 2026 and December 31, 2025 was maintained at a correspondent bank and considered to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash also included $0.3 million and $0.8 million of interest-bearing funds deposited in other banks with original terms of 5 to 6 years that cannot be withdrawn but are salable on an active secondary market, without penalty, as of June 30, 2026 and December 31, 2025. As of June 30, 2026, the Company held $0.6 million in a money market account in connection with a letter of credit. Certain of the Company's borrowings require that the Company and its subsidiaries maintain cash at specific levels pursuant to covenants in applicable debt agreements. The Company is compliant with these covenants as of June 30, 2026.

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, FASB Accounting Standards Codification, or ASC, Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e., a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 12 and 13 to the consolidated financial statements.

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments were $8.7 million and $8.1 million as of June 30, 2026 and December 31, 2025, which were comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. Substantially all of these equity investments are held by Medallion Capital, our SBIC subsidiary, in connection with its mezzanine lending business. As of June 30, 2026, cumulative impairment of $5.3 million had been recorded with respect to these investments. During the three and six months ended June 30, 2026, the Company recognized net gains of $0.2 million and $0.5 million on equity investments, net of losses, inclusive of $0 and $0.4 million of net realized gains.

During 2021, the Company purchased $2.0 million of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in gain (loss) on equity investments. The fair value of these securities were $1.8 million as of both June 30, 2026 and December 31, 2025 and are included in other assets on the consolidated balance sheets. The Company recognized less than $0.1 million of losses for each of the three and six months ended June 30, 2026 and less than $0.1 million of gains for each of the three and six months ended June 30, 2025.

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized using the interest method. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed. In accordance with ASC 326, the Company does not maintain an allowance for credit losses for accrued interest receivable.

Page 11 of 62

For available-for-sale debt securities in an unrealized loss position, the Company first determines if it intends to sell the security, or if it is more likely than not that the Company will be required to sell it before recovering its amortized cost basis. If either condition is met, the security’s amortized cost basis is written down to its fair value through earnings. If neither condition is met, the Company assesses whether the decline in fair value is the result of credit losses or other factors. This assessment includes reviewing changes in the rating of the security by a rating agency, increases in defaults on the underlying collateral, and the extent to which the securities are issued by the federal government or its agencies, including the amount of the guarantee issued by those agencies, among other factors. If a credit loss exists, the Company compares the present value of expected cash flows from the security to its amortized cost basis. If the present value is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded through earnings, but limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment not recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of taxes.

Changes in the allowance for credit losses are recorded as a provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management confirms the uncollectibility of an available-for-sale debt security or when either of the criteria regarding intent or requirement to sell is met. There were no investment securities allowance for credit losses as of June 30, 2026 and December 31, 2025.

Loans

The Company’s loans, classified as held for investment, are currently reported at amortized cost, which is the principal amount outstanding, inclusive of loan origination costs, which primarily includes deferred costs paid to loan originators, and which are amortized to interest income over the life of the loan.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. As of June 30, 2026 and December 31, 2025, net loan origination costs included in loans were $59.7 million and $52.0 million. Net amortization reducing interest income was $3.7 million and $6.7 million for the three and six months ended June 30, 2026 and was $2.6 million and $4.9 million for the three and six months ended June 30, 2025.

Interest income is recorded on the accrual basis. The consumer loan portfolio is typified by a large number of smaller dollar loans that have similar characteristics. When, based on current information and events, it is unlikely the Company will be able to collect all amounts due according to the contractual terms of the original loan agreement, a loan is considered nonperforming. Loans are considered past due when a borrower fails to make a full payment by the payment due date or maturity date. Consumer loans are placed on nonaccrual when they become 90 days past due, and are charged off in their entirety when deemed uncollectible, if they enter bankruptcy, or when they become 120 days past due, whichever occurs first. The Company takes appropriate recovery efforts against both the borrower and the underlying collateral are initiated for nonaccrual loans. For the recreation loan portfolio, the process to repossess the collateral is generally started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged off. If the collateral is repossessed, a loss is recorded by writing the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as recoveries. Commercial loans and taxi medallion loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectibility of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal.

The Company may modify the contractual cash flow of loans in situations where borrowers are experiencing financial difficulties. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include interest rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off.

Loan collateral in process of foreclosure includes consumer repossessed collateral in the process of being sold in addition to taxi medallion loans that have reached 120 days past due and have been charged down to the net realizable value of the underlying collateral. For New York City taxi medallion loans in the process of foreclosure, the Company continued to utilize a maximum net value of $79,500 when assessing net realizable value for these taxi medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time. The "loan collateral in the process of foreclosure" designation reflects that the collection activities on these loans have transitioned from working with the borrower to the liquidation of the collateral securing the loans.

Page 12 of 62

Loans Held for Sale

Loans held for sale consist of consumer loans, including loans originated through strategic partnerships, that are intended to be sold. Loans held for sale are recorded at the lower of amortized cost or fair value. Changes in fair value are recognized in non-interest income. For loans transferred into the held for sale classification from the held for investment classification, any allowance for credit losses previously recorded is reversed at the transfer date, and the loans are transferred at their amortized cost basis (which is reduced by any previous charge-offs, but excludes any allowance for credit losses). For the three and six months ended June 30, 2026, the Company did not recognize any fair value adjustments related to loans held for sale.

Allowance for Credit Losses

The Company follows Accounting Standards Update, or ASU, 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or ASC 326, which requires recognition of lifetime expected losses using "reasonable and supportable" expectations about the future, referred to as the current expected credit loss, or CECL, methodology. For consumer loans, the Company uses historical delinquent loan performance, qualitative adjustments, and actual loss rates modified by quantitative adjustments based on macroeconomic factors over a twelve-month reasonable and supportable forecast period followed by a six month reversion period. For commercial loans, the Company assesses the historical impact that macroeconomic indicators have had on the loan portfolio, to determine an approximate allowance for credit loss. Unlike consumer loans, where loans may have similar performing characteristics, each commercial loan is unique. The Company evaluates each commercial loan for specific impairment with additional allowance for credit losses recognized as necessary. For taxi medallion loans, the Company individually evaluates each loan and establishes a reserve based on fair value of collateral less cost to sell.

The allowance is evaluated on a quarterly basis by management based on the collectibility of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation is inherently subjective, as it requires estimates, including those based on changes in economic conditions, that are susceptible to significant revision as more information becomes available. Credit losses are deducted from the allowance, and subsequent recoveries are added back to the allowance. The Company has elected to exclude accrued interest from its measurement of the allowance for credit losses.

Goodwill and Intangible Assets

Goodwill assets arose as a result of the excess of fair value over book value for several of our previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company's requirement to consolidate these previously unconsolidated subsidiaries and was subject to a purchase price accounting allocation process conducted by an independent third-party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis.

Other intangible assets with finite useful lives are amortized either on an accelerated or straight-line basis over their estimated useful lives. Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

As of June 30, 2026 and December 31, 2025, the Company had goodwill of $150.8 million, all of which related to the recreation and home improvement lending segments. As of June 30, 2026 and December 31, 2025, the Company had intangible assets of $17.0 million and $17.7 million. The Company recognized $0.4 million and $0.7 million of amortization expense on the intangible assets for the three and six months ended June 30, 2026 and 2025.

Management engaged an independent third-party expert to perform a quantitative assessment of goodwill for impairment at October 1, 2025. The third-party expert, as of the most recent goodwill impairment testing date, determined that a fair value premium existed in excess of the carrying value of the recreation and home improvement lending segments. During the three and six months ended June 30, 2026, the Company did not identify any triggering events that would require re-evaluation of goodwill impairment in either segment.

The table below presents the intangible assets as of the dates presented:

(Dollars in thousands)	June 30, 2026		December 31, 2025
Brand-related intellectual property	$	12,925	$	13,475
Home improvement contractor relationships		4,054		4,226
Total intangible assets	$	16,979	$	17,701

Page 13 of 62

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $0.7 million and $1.3 million for the three and six months ended June 30, 2026 and $0.6 million and $1.2 million for the three and six months ended June 30, 2025.

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense, included as interest expense in the Consolidated Statements of Operations, was $1.2 million and $2.2 million for the three and six months ended June 30, 2026 and was $1.1 million and $2.2 million for the three and six months ended June 30, 2025. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amount of deferred financing costs on the Company’s balance sheet related to deposits and borrowing facilities were $10.2 million and $8.4 million as of June 30, 2026 and December 31, 2025, and there were no capitalized transaction costs as of June 30, 2026 and December 31, 2025.

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, or ASC 740. Deferred tax assets and liabilities reflect the impact of temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at the enacted tax rates expected to apply in the year when taxes are actually paid or recovered. Deferred tax assets are also recorded for net operating losses, capital losses and any tax credit carryforwards. A valuation allowance is provided against a deferred tax asset when it is more likely than not that some or all of the deferred tax assets will not be realized. All available evidence, both positive and negative, is considered to determine whether a valuation allowance for deferred tax assets is needed. Items considered in determining the Company’s valuation allowance include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carryforward periods and the expected timing of the reversal of temporary differences. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense.

Earnings Per Share (EPS)

Basic earnings per share are computed by dividing net income resulting from operations available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after considering the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below presents the calculation of basic and diluted EPS.

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands, except share and per share data)	2026		2025		2026		2025
Net income attributable to common stockholders	$	7,445	$	11,069	$	12,398	$	23,083
Weighted average common shares outstanding applicable to basic EPS		23,288,732		22,783,947		23,174,870		22,677,961
Effect of performance stock unit grants		260,744		669,376		495,012		592,511
Effect of restricted stock grants		217,392		361,690		352,197		468,970
Effect of dilutive stock options		246,435		243,071		258,105		238,772
Adjusted weighted average common shares outstanding applicable to diluted EPS		24,013,303		24,058,084		24,280,184		23,978,214
Basic earnings per share	$	0.32	$	0.49	$	0.53	$	1.02
Diluted earnings per share		0.31		0.46		0.51		0.96

Potentially dilutive common shares excluded from the above calculations were 18,311 shares as of June 30, 2026 and 86,410 shares as of June 30, 2025.

Page 14 of 62

Stock Compensation

The Company follows FASB ASC Topic 718, or ASC 718, Compensation – Stock Compensation, for its equity incentive, stock option, and restricted stock plans, and accordingly, the Company recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options are reflected in net income resulting from operations for any new grants using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock and performance stock units, or PSUs, are reflected in net income resulting from operations for any new grants using the grant date fair value of the shares and units granted, expensed over the vesting period of the underlying stock.

Regulatory Capital

The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the bank regulators about components, risk weightings, and other factors.

FDIC-insured banks, including the Bank, are subject to certain federal laws, which impose various legal limitations on the extent to which banks may finance or otherwise supply funds to certain of their affiliates. In particular, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions with, such as certain purchases of assets, the Company or its affiliates.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (presented in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, a level which could affect the Bank's ability to pay dividends to the Company, and that an adequate allowance for credit losses be maintained. As of June 30, 2026 and December 31, 2025, the Bank’s Tier 1 leverage ratio was considered well-capitalized. The Bank had excess Tier 1 leverage capital of $51.4 million over the 15% minimum required, which was $402.3 million based on our total assets as of June 30, 2026. The Bank’s capital amounts and ratios and the regulatory minimum ratios are presented in the following table.

	Regulatory
(Dollars in thousands)	Adequately Capitalized			Well- Capitalized			June 30, 2026			December 31, 2025
Common equity tier 1 capital							$	354,278		$	356,038
Tier 1 capital								453,707			455,467
Total capital								488,441			487,292
Average assets								2,682,074			2,558,754
Risk-weighted assets								2,701,087			2,472,328
Leverage ratio (1)		4.0	%		5.0	%		16.9	%		17.8	%
Common equity tier 1 capital ratio (2)		4.5			6.5			13.1			14.4
Tier 1 capital ratio (3)		6.0			8.0			16.8			18.4
Total capital ratio (3)		8.0			10.0			18.1			19.7

(1)Calculated by dividing Tier 1 capital by average assets.

(2)Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets.

(3)Calculated by dividing Tier 1 or total capital by risk-weighted assets.

In the above table, the minimum risk-based ratios as of June 30, 2026 and December 31, 2025 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both June 30, 2026 and December 31, 2025.

Recently Issued Accounting Standards

In November 2024, the FASB issued ASU 2024-03, Income Statement, Reporting Comprehensive Income - Expense Disaggregation of Income Statement Expenses. This update requires additional disaggregation of specific types of expenses within the notes to consolidated financial statements on an annual and interim basis. In January 2025, the FASB issued ASU 2025-01 to clarify that all public business entities are required to adopt ASU 2024-03 for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is assessing the impact of the update on the accompanying financial statements.

Page 15 of 62

Reclassifications

Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations.

(3) INVESTMENT SECURITIES

The following tables present details of fixed maturity securities available for sale as of June 30, 2026 and December 31, 2025.

June 30, 2026 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	53,604	$	37	$	(3,711	)	$	49,930
State and municipalities		21,319		12		(1,453	)		19,878
Agency bonds		135		—		(10	)		125
Total	$	75,058	$	49	$	(5,174	)	$	69,933
December 31, 2025 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	45,392	$	160	$	(3,381	)	$	42,171
State and municipalities		19,117		14		(1,251	)		17,880
Agency bonds		139		—		(7	)		132
Total	$	64,648	$	174	$	(4,639	)	$	60,183

The amortized cost and estimated fair market value of investment securities at June 30, 2026 by contractual maturity are presented below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage‑backed securities are included in the table based on their contractual maturities and are reflected in each category below.

June 30, 2026 (Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	2,354	$	2,348
Due after one year through five years		10,543		9,962
Due after five years through ten years		9,476		9,189
Due after ten years		52,685		48,434
Total	$	75,058	$	69,933

The following tables present information pertaining to securities with gross unrealized losses as of June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	Less than Twelve Months					Twelve Months and Over
June 30, 2026 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities	$	(256	)	$	9,382	$	(3,455	)	$	28,918
State and municipalities		(39	)		2,904		(1,414	)		13,958
Agency bonds		—			—		(10	)		125
Total	$	(295	)	$	12,286	$	(4,879	)	$	43,001
	Less than Twelve Months					Twelve Months and Over
December 31, 2025 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities	$	(13	)	$	3,420	$	(3,368	)	$	26,541
State and municipalities		(3	)		22		(1,248	)		14,840
Agency bonds		—			—		(7	)		132
Total	$	(16	)	$	3,442	$	(4,623	)	$	41,513

Page 16 of 62

As of June 30, 2026 and December 31, 2025, the Company had 57 and 52 securities with unrealized losses that had not been recognized in income. The investments are mortgage-backed securities and similar instruments with conservative risk characteristics, all of which are directly or indirectly guaranteed by the U.S. Government. The municipal bond portfolio consists of bonds purchased from the Utah Housing Corporation, which primarily acquires FHA‑insured loans within the state of Utah. The Company regularly reviews investment securities for impairment resulting from credit loss using both qualitative and quantitative criteria, as necessary based on the composition of the portfolio at period end. Based on the Company's assessment, no material impairments for credit losses were recognized during the period. The Company does not intend to sell its investment securities that are in an unrealized loss position and believes that it is unlikely that it will be required to sell these securities before recovery of the amortized cost. As of June 30, 2026 and December 31, 2025, the Company did not hold investments in any single issuer with an aggregate book value that exceeded 10% of the Company's equity, other than U.S. Government agency residential mortgage-backed securities issued by the Federal National Mortgage Association.

(4) LOANS AND ALLOWANCE FOR CREDIT LOSSES

The following table presents the major classification of loans, inclusive of capitalized loan origination costs, as of June 30, 2026 and December 31, 2025.

	June 30, 2026					December 31, 2025
(Dollars in thousands)	Amount		As a Percent of Total Loans (1)			Amount		As a Percent of Total Loans (1)
Loans held for investment:
Recreation	$	1,760,297		63	%	$	1,617,221		63	%
Home improvement		885,599		32			810,237		32
Commercial		126,177		5			123,068		5
Taxi medallion		1,293	*				1,179	*
Total loans		2,773,366		99			2,551,705		99
Loans held for sale, at lower of amortized cost or fair value:
Strategic partnership		21,376	*				15,144	*
Total loans held for sale, at lower of amortized cost or fair value		21,376	*				15,144	*
Total loans and loans held for sale	$	2,794,742		100	%	$	2,566,849		100	%

(1) Percentage may not foot due to rounding.

(*) Less than 1%.

The following tables present the activity of the gross loans and loans held for sale for the three and six months ended June 30, 2026.

Three Months Ended June 30, 2026 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – March 31, 2026	$	1,671,538		$	814,933		$	119,612		$	1,126		$	10,786		$	2,617,995
Loan originations		228,469			128,640			7,134			266			247,098			611,607
Principal receipts, sales, and maturities		(121,312	)		(55,571	)		(651	)		(99	)		(236,508	)		(414,141	)
Charge-offs		(18,505	)		(4,165	)		(74	)		—			—			(22,744	)
Transfer to loan collateral in process of foreclosure, net		(3,609	)		—			—			—			—			(3,609	)
Amortization of origination fees and costs, net		(4,185	)		514			12			—			—			(3,659	)
Origination fees and costs, net		7,901			1,248			(143	)		—			—			9,006
Paid-in-kind interest		—			—			287			—			—			287
Gross loans – June 30, 2026	$	1,760,297		$	885,599		$	126,177		$	1,293		$	21,376		$	2,794,742

Six Months Ended June 30, 2026 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – December 31, 2025	$	1,617,221		$	810,237		$	123,068		$	1,179		$	15,144		$	2,566,849
Loan originations		371,017			193,042			7,134			266			417,082			988,541
Principal receipts, sales, and maturities		(186,194	)		(111,664	)		(4,418	)		(114	)		(410,850	)		(713,240	)
Charge-offs		(40,996	)		(8,516	)		(74	)		(38	)		—			(49,624	)
Transfer to loan collateral in process of foreclosure, net		(6,036	)		—			—			—			—			(6,036	)
Amortization of origination fees and costs, net		(7,935	)		1,251			20			—			—			(6,664	)
Origination fees and costs, net		13,220			1,249			(143	)		—			—			14,326
Paid-in-kind interest		—			—			590			—			—			590
Gross loans – June 30, 2026	$	1,760,297		$	885,599		$	126,177		$	1,293		$	21,376		$	2,794,742

Page 17 of 62

The following tables present the activity of the gross loans and loans held for sale for the three and six months ended June 30, 2025.

Three Months Ended June 30, 2025 (Dollars in thousands)	Recreation (1)			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – March 31, 2025	$	1,545,844		$	812,381		$	116,059		$	1,650		$	10,499		$	2,486,433
Loan originations		142,789			54,253			9,368			—			168,637			375,047
Principal receipts, sales, and maturities		(123,204	)		(58,380	)		(4,259	)		(86	)		(166,851	)		(352,780	)
Charge-offs		(16,273	)		(4,951	)		—			—			—			(21,224	)
Transfer to loan collateral in process of foreclosure, net		(3,457	)		—			—			—			—			(3,457	)
Amortization of origination fees and costs, net		(3,746	)		1,156			11			—			—			(2,579	)
Origination fees and costs, net		4,299			(924	)		—			—			—			3,375
Paid-in-kind interest		—			—			236			—			—			236
Gross loans – June 30, 2025	$	1,546,252		$	803,535		$	121,415		$	1,564		$	12,285		$	2,485,051

(1)Includes loans held for sale and loans held for investment.

Six Months Ended June 30, 2025 (Dollars in thousands)	Recreation (1)			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – December 31, 2024	$	1,543,243		$	827,211		$	111,273		$	1,909		$	7,386		$	2,491,022
Loan originations		229,622			103,049			19,075			72			304,877			656,695
Principal receipts, sales, and maturities		(184,711	)		(117,991	)		(9,311	)		(402	)		(299,978	)		(612,393	)
Charge-offs		(36,547	)		(9,178	)		(130	)		(15	)		—			(45,870	)
Transfer to loan collateral in process of foreclosure, net		(5,846	)		—			—			—			—			(5,846	)
Amortization of origination fees and costs, net		(7,227	)		2,289			23			—			—			(4,915	)
Origination fees and costs, net		7,718			(1,845	)		—			—			—			5,873
Paid-in-kind interest		—			—			485			—			—			485
Gross loans – June 30, 2025	$	1,546,252		$	803,535		$	121,415		$	1,564		$	12,285		$	2,485,051

(1)Includes loans held for sale and loans held for investment.

The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2026.

(Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion (1)			Total
Balance at December 31, 2025	$	85,956		$	19,563		$	9,052		$	218		$	114,789
Charge-offs		(22,491	)		(4,351	)		—			(38	)		(26,880	)
Recoveries		4,820			1,465			5			21			6,311
Provision (benefit) for credit losses		18,445			3,618			459			(46	)		22,476
Balance at March 31, 2026		86,730			20,295			9,516			155			116,696
Charge-offs		(18,505	)		(4,165	)		(74	)		—			(22,744	)
Recoveries		5,158			1,276			—			42			6,476
Provision (benefit) for credit losses		17,501			4,066			774			(68	)		22,273
Balance at June 30, 2026	$	90,884		$	21,472		$	10,216		$	129		$	122,701

(1)As of June 30, 2026, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $168.1 million, including $103.8 million related to loans secured by New York taxi medallions, some of which may represent recovery opportunities for the Company.

The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2025.

(Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion (1)			Total
Balance at December 31, 2024	$	71,102		$	20,536		$	5,190		$	540		$	97,368
Charge-offs		(20,274	)		(4,227	)		(130	)		(15	)		(24,646	)
Recoveries		3,860			1,095			—			675			5,630
Provision (benefit) for credit losses		16,870			2,845			3,114			(815	)		22,014
Balance at March 31, 2025		71,558			20,249			8,174			385			100,366
Charge-offs		(16,273	)		(4,951	)		—			—			(21,224	)
Recoveries		4,419			1,190			10			573			6,192
Provision (benefit) for credit losses		15,336			3,934			2,912			(620	)		21,562
Balance at June 30, 2025	$	75,040		$	20,422		$	11,096		$	338		$	106,896

(1)As of June 30, 2025 cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $161.5 million, including $95.2 million related to loans secured by New York taxi medallions, some of which may represent recovery opportunities for the Company.

Page 18 of 62

The following tables present the gross charge-offs for the three and six months ended June 30, 2026, by the year of origination.

Three Months Ended June 30, 2026 (Dollars in thousands)	2026		2025		2024		2023		2022		Prior		Total
Recreation	$	112	$	3,570	$	3,872	$	3,651	$	3,185	$	4,115	$	18,505
Home improvement		97		400		808		1,265		839		756		4,165
Commercial		—		—		—		—		—		74		74
Taxi medallion		—		—		—		—		—		—		—
Total	$	209	$	3,970	$	4,680	$	4,916	$	4,024	$	4,945	$	22,744

Six Months Ended June 30, 2026 (Dollars in thousands)	2026		2025		2024		2023		2022		Prior		Total
Recreation	$	112	$	7,255	$	9,489	$	8,152	$	7,159	$	8,829	$	40,996
Home improvement		97		799		1,724		2,593		1,791		1,512		8,516
Commercial		—		—		—		—		—		74		74
Taxi medallion		—		—		—		—		—		38		38
Total	$	209	$	8,054	$	11,213	$	10,745	$	8,950	$	10,453	$	49,624

The following tables present the gross charge-offs for the three and six months ended June 30, 2025, by the year of origination.

Three Months Ended June 30, 2025 (Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Total
Recreation	$	11	$	3,812	$	3,917	$	4,439	$	2,106	$	1,988	$	16,273
Home improvement		—		1,125		1,703		1,061		643		419		4,951
Commercial		—		—		—		—		—		—		—
Taxi medallion		—		—		—		—		—		—		—
Total	$	11	$	4,937	$	5,620	$	5,500	$	2,749	$	2,407	$	21,224

Six Months Ended June 30, 2025 (Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Total
Recreation	$	11	$	6,540	$	7,624	$	8,945	$	4,039	$	9,388	$	36,547
Home improvement		—		1,948		3,206		2,194		1,071		759		9,178
Commercial		—		—		—		130		—		—		130
Taxi medallion		—		—		—		—		—		15		15
Total	$	11	$	8,488	$	10,830	$	11,269	$	5,110	$	10,162	$	45,870

The following table presents the allowance for credit losses by type as of June 30, 2026.

June 30, 2026 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category (2)
Recreation	$	90,884		74	%		5.16	%
Home improvement		21,472		17			2.42
Commercial		10,216		8			8.10
Taxi medallion		129	*				9.98
Total (1)	$	122,701		100	%

(1)Does not include loans held for sale which are carried at the lower of amortized cost or fair value for which an allowance for credit loss is not established.

(2)As of June 30, 2026, total allowance for credit losses as a percent of nonaccrual loans was 284%.

(*) Less than 0.1%.

The following table presents the allowance for credit losses by type as of December 31, 2025.

December 31, 2025 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category (2)
Recreation	$	85,956		75	%		5.32	%
Home improvement		19,563		17			2.41
Commercial		9,052		8			7.36
Taxi medallion		218	*				18.49
Total (1)	$	114,789		100	%

(1)Does not include loans held for sale which are carried at the lower of amortized cost or fair value for which an allowance for credit loss is not established.

(2)As of December 31, 2025, total allowance for credit losses as a percent of nonaccrual loans was 281%.

(*) Less than 0.1%.

Page 19 of 62

The following table presents the performance status of loans as of June 30, 2026.

June 30, 2026 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	1,749,780	$	10,517	$	1,760,297		0.60	%
Home improvement		884,099		1,500		885,599		0.17
Commercial		96,276		29,901		126,177		23.70
Taxi medallion		—		1,293		1,293		100.00
Strategic partnership		21,376		—		21,376		—
Total	$	2,751,531	$	43,211	$	2,794,742		1.55	%

The following table presents the performance status of loans as of December 31, 2025.

December 31, 2025 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	1,603,542	$	13,679	$	1,617,221		0.85	%
Home improvement		808,943		1,294		810,237		0.16
Commercial		98,380		24,688		123,068		20.06
Taxi medallion		—		1,179		1,179		100.00
Strategic partnership		15,144		—		15,144		—
Total	$	2,526,009	$	40,840	$	2,566,849		1.59	%

For those loans aged under 90 days past due, there is a possibility that their delinquency status will continue to deteriorate and they will subsequently be placed on nonaccrual status and be reserved for, and as a result, deemed nonperforming.

The following table presents the aging of loans as of June 30, 2026.

June 30, 2026	Days Past Due												Recorded Investment 90 Days and
(Dollars in thousands)	30-59		60-89		90 +		Total		Current		Total (1)		Accruing
Recreation	$	47,652	$	21,061	$	9,726	$	78,439	$	1,621,452	$	1,699,891	$	—
Home improvement		5,296		2,438		1,499		9,233		876,814		886,047		—
Commercial		—		—		13,035		13,035		113,412		126,447		—
Taxi medallion		78		—		120		198		1,095		1,293		—
Strategic partnership		—		—		—		—		21,376		21,376		—
Total	$	53,026	$	23,499	$	24,380	$	100,905	$	2,634,149	$	2,735,054	$	—

(1)Excludes $59.7 million of capitalized loan origination costs and fees.

The following table presents the aging of loans as of December 31, 2025.

December 31, 2025	Days Past Due												Recorded Investment 90 Days and
(Dollars in thousands)	30-59		60-89		90 +		Total		Current		Total (1)		Accruing
Recreation	$	56,911	$	22,890	$	12,856	$	92,657	$	1,469,444	$	1,562,101	$	—
Home improvement		4,891		2,367		1,300		8,558		804,627		813,185		—
Commercial		—		—		10,274		10,274		112,942		123,216		—
Taxi medallion		—		—		41		41		1,138		1,179		—
Strategic partnership		—		—		—		—		15,144		15,144		—
Total	$	61,802	$	25,257	$	24,471	$	111,530	$	2,403,295	$	2,514,825	$	—

(1)Excludes $52.0 million of capitalized loan origination costs.

Page 20 of 62

The following table presents loan delinquency for recreation and home improvement loans as of June 30, 2026, by the year of origination:

(Dollars in thousands)	2026		2025		2024		2023		2022		Prior		Total (1)
Recreation
Current	$	354,614	$	384,820	$	258,354	$	211,789	$	185,249	$	226,626	$	1,621,452
30-59 Days		1,262		9,668		9,159		8,646		8,224		10,693		47,652
60-89 Days		741		4,744		4,130		3,398		3,285		4,763		21,061
90 + Days		156		2,083		2,293		1,998		1,450		1,746		9,726
Total Recreation	$	356,773	$	401,315	$	273,936	$	225,831	$	198,208	$	243,828	$	1,699,891
Home improvement
Current	$	182,684	$	160,187	$	147,903	$	134,042	$	134,755	$	117,243	$	876,814
30-59 Days		142		906		665		1,431		1,425		727		5,296
60-89 Days		46		471		437		550		619		315		2,438
90 + Days		79		156		173		468		416		207		1,499
Total Home improvement	$	182,951	$	161,720	$	149,178	$	136,491	$	137,215	$	118,492	$	886,047

(1)Excludes $60.4 million of capitalized recreation loan origination costs and $0.4 million of net deferred home improvement loan origination fees.

The following table presents loan delinquency for recreation and home improvement loans as of December 31, 2025, by the year of origination:

(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Total (1)
Recreation
Current	$	423,427	$	335,079	$	237,917	$	209,204	$	132,704	$	131,113	$	1,469,444
30-59 Days		8,210		12,763		11,042		10,623		6,061		8,212		56,911
60-89 Days		2,374		5,414		4,918		4,872		2,581		2,731		22,890
90 + Days		1,487		3,136		2,803		2,329		1,347		1,754		12,856
Total Recreation	$	435,498	$	356,392	$	256,680	$	227,028	$	142,693	$	143,810	$	1,562,101
Home improvement
Current	$	193,964	$	172,735	$	151,637	$	151,365	$	71,812	$	63,114	$	804,627
30-59 Days		535		980		1,609		876		513		378		4,891
60-89 Days		353		761		441		455		199		158		2,367
90 + Days		—		410		417		331		42		100		1,300
Total Home improvement	$	194,852	$	174,886	$	154,104	$	153,027	$	72,566	$	63,750	$	813,185

(1)Excludes $55.1 million of capitalized recreation loan origination costs and $2.9 million of net deferred home improvement loan origination fees.

(5) FUNDS BORROWED

The following table presents outstanding balances of funds borrowed.

	Payments Due for the Twelve Months Ending June 30,
(Dollars in thousands)	2027		2028		2029		2030		2031		Thereafter		June 30, 2026 (1)		December 31, 2025 (1)		Interest Rate (2)
Deposits (3)	$	813,106	$	543,130	$	439,846	$	257,482	$	238,824	$	—	$	2,292,388	$	2,083,335		3.89	%
Privately placed notes		—		53,750		39,000		—		75,000		22,500		190,250		146,500		8.31
SBA debentures and borrowings		4,500		—		2,500		—		3,000		63,500		73,500		85,000		4.11
Trust preferred securities		—		—		—		—		—		33,000		33,000		33,000		6.04
Federal reserve and other borrowings		50,000		—		—		—		—		—		50,000		50,000		3.75
Strategic partner collateral deposits		7,000		—		—		—		—		—		7,000		6,081		3.64
Total	$	874,606	$	596,880	$	481,346	$	257,482	$	316,824	$	119,000	$	2,646,138	$	2,403,916		4.25	%

(1)Excludes deferred financing costs of $10.2 million and $8.4 million as of June 30, 2026 and December 31, 2025.

(2)Weighted average contractual rate as of June 30, 2026.

(3)Balance includes $29.7 million and $3.7 million in retail savings deposit balances as of June 30, 2026 and December 31, 2025.

Page 21 of 62

(A) DEPOSITS

Most deposits are raised through the use of investment brokerage firms that package time deposits in denominations of less than $250,000 qualifying for FDIC insurance into larger pools that are sold to the Bank. While brokered time deposits are sourced in amounts in excess of $250,000, all underlying deposits are in denominations of $250,000 or less. The rates paid on the deposits are highly competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, the annual expense of which averages less than 0.15%. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. Additionally, the Bank raises deposits through listing services and, as of June 30, 2026 and December 31, 2025, the Bank had $27.7 million and $17.2 million in listing service deposit balances from other financial institutions. As of June 30, 2026 and December 31, 2025, the Bank had $29.7 million and $3.7 million in retail savings deposit balances. The following table presents the maturity of the deposit pools, which includes strategic partner reserve deposits, as of June 30, 2026.

(Dollars in thousands)	June 30, 2026
Three months or less	$	227,463
Over three months through six months		149,329
Over six months through one year		436,314
Over one year		1,479,282
Deposits		2,292,388
Strategic partner collateral deposits		7,000
Total deposits	$	2,299,388

(B) FEDERAL RESERVE DISCOUNT WINDOW AND OTHER BORROWINGS

As of June 30, 2026, the Bank had $2.4 billion of consumer loans pledged as collateral for a discount window line of credit established at the Federal Reserve. The current advance rate on the pledged loans is approximately 55% of book value, for a total of approximately $1.3 billion in secured borrowing capacity, of which $50.0 million was utilized as of June 30, 2026. The discount window facility is not committed, and any borrowings by the Bank from the discount window facility are at the discretion of the Federal Reserve. The weighted average interest rate on funds borrowed from the discount window was 3.75% as of June 30, 2026.

The Bank has borrowing arrangements with correspondent banks. These agreements are accommodations that can be terminated at any time, for any reason and allow the Bank to borrow up to $75.0 million. As of June 30, 2026, there was no outstanding amount with respect to these arrangements.

(C) PRIVATELY PLACED NOTES

The Company has entered into various private placements with certain institutional investors over time. The following table presents the private placement notes outstanding as of June 30, 2026 and December 31, 2025.

(Dollars in thousands)
Date of Notes	Maturity	Interest Rate			Interest Payable	June 30, 2026		December 31, 2025
December 2020	December 2027		7.500	%	Semi-annually	$	53,750	$	53,750
February 2021	February 2026		7.250	%	Semi-annually		—		31,250
September 2023	September 2028		9.250	%	Semi-annually		39,000		39,000
June 2024	June 2039		8.875	%	Semi-annually		17,500		17,500
August 2024	August 2039		8.625	%	Semi-annually		5,000		5,000
April 2026	May 2031		8.250	%	Semi-annually		75,000		—
						$	190,250	$	146,500

Page 22 of 62

(D) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for Medallion Capital, typically for a four and a half year term and a 1% fee. On February 28, 2024, Medallion Capital accepted a commitment from the SBA for $18.5 million in debenture financing, all of which had been utilized during 2025. The Company does not currently have any commitments available from the SBA.

In 2025, the SBA informed Medallion Capital that it needs to have Medallion Capital’s management team reviewed through the SBA’s licensing division; until successful completion of that review, Medallion Capital was not deemed by the SBA to have a qualified management team. Medallion Capital submitted a management team for review through the SBA’s licensing division on March 31, 2026 and on the same day, the SBA notified Medallion Capital that it has declared an event of default with respect to outstanding debentures and directed Medallion Capital, within 120 days, to identify and submit at least one qualified candidate for consideration as a full-time principal and investment committee member of Medallion Capital. In April 2026, Medallion Capital submitted two candidates to the SBA for its consideration. On June 3, 2026, the SBA notified Medallion Capital that Medallion Capital’s submission of two candidates cures the previously disclosed event of default, subject to the satisfactory completion of the candidates’ background checks. On June 11, 2026, the SBA notified Medallion Capital that there was a satisfactory completion of such background checks, which cured the previously disclosed event of default with respect to its outstanding SBA debentures. The SBA’s notice and event of default did not trigger any cross-default clauses in any of the Company's debt arrangements. Medallion Capital is awaiting confirmation from the SBA that it deems the management team qualified for purposes of obtaining new and future commitments for debenture financing.

The following table presents the SBA debentures and borrowings as of June 30, 2026 and December 31, 2025.

(Dollars in thousands)
Date of Notes	Maturity	Interest Rate			Interest Payable	June 30, 2026		December 31, 2025
March 2016	March 2026		3.25	%	Semi-annually	$	—	$	1,500
March 2016	March 2026		3.18	%	Semi-annually		—		10,000
May 2016	September 2026		2.72	%	Semi-annually		2,500		2,500
March 2017	March 2027		3.52	%	Semi-annually		2,000		2,000
September 2018	September 2028		4.22	%	Semi-annually		1,250		1,250
March 2019	March 2029		3.79	%	Semi-annually		1,250		1,250
September 2020	September 2030		1.71	%	Semi-annually		3,000		3,000
June 2021	September 2031		1.58	%	Semi-annually		8,500		8,500
October 2021	March 2032		3.21	%	Semi-annually		7,000		7,000
October 2022	March 2033		5.44	%	Semi-annually		4,750		4,750
April 2023	September 2033		5.96	%	Semi-annually		4,750		4,750
September 2023	March 2034		5.08	%	Semi-annually		4,750		4,750
November 2023	March 2034		5.08	%	Semi-annually		5,000		5,000
March 2025	September 2035		4.58	%	Semi-annually		10,250		10,250
August 2025	September 2035		4.66	%	Semi-annually		18,500		18,500
						$	73,500	$	85,000

(E) TRUST PREFERRED SECURITIES

In June 2007, the Company issued and sold $36.1 million aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35.0 million of trust preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. Interest is calculated using the Secured Overnight Financing Rate, or SOFR, adjusted by a relevant spread adjustment of approximately 26 basis points, plus 2.13%. The notes mature in September 2037 and are prepayable at par. Interest is payable quarterly in arrears. The terms of the trust preferred securities and the notes are substantially identical. In December 2007, $2.0 million of the trust preferred securities were repurchased from a third-party investor. As of June 30, 2026, $33.0 million was outstanding on the trust preferred securities.

(F) COVENANT COMPLIANCE

Certain of the Company's debt agreements contain financial covenants that require the Company to maintain certain financial ratios and minimum tangible net worth. As of June 30, 2026, the Company was in compliance with all such covenants.

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(6) LEASES

The Company has leased premises that expire at various dates through November 30, 2033 subject to various operating leases.

The following table presents the operating lease costs and additional information for the three and six months ended June 30, 2026 and 2025.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2026			2025			2026			2025
Operating lease costs	$	634		$	556		$	1,267		$	1,176
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		698			683			1,395			1,358
Right-of-use asset obtained in exchange for lease liability		(36	)		(63	)		(74	)		(126	)

The following table presents the breakout of the operating leases as of June 30, 2026 and December 31, 2025.

(Dollars in thousands)	June 30, 2026			December 31, 2025
Operating lease right-of-use assets	$	4,214		$	6,896
Other current liabilities		463			2,205
Operating lease liabilities		3,876			5,041
Total operating lease liabilities		4,339			7,246
Weighted average remaining lease term	7.2 years			5.8 years
Weighted average discount rate		6.28	%		5.90	%

At June 30, 2026, maturities of the lease liabilities were as follows:

(Dollars in thousands)
Remainder of 2026	$	366
2027		735
2028		756
2029		777
2030		798
Thereafter		2,205
Total lease payments (1)		5,637
Less imputed interest		1,298
Total operating lease liabilities	$	4,339

(1)Does not include lease obligations commencing after June 30, 2026.

(7) INCOME TAXES

The Company is subject to federal and applicable state corporate income taxes on its taxable ordinary income and capital gains. As a corporation taxed under Subchapter C of the Internal Revenue Code, the Company is able, and intends, to file a consolidated federal income tax return with corporate subsidiaries in which it holds 80% or more of the outstanding equity interest measured by both vote and fair value.

The following table presents the significant components of the Company's deferred tax assets and liabilities as of June 30, 2026 and December 31, 2025.

(Dollars in thousands)	June 30, 2026			December 31, 2025
Deferred tax assets:
Provision for credit losses	$	18,272		$	17,700
Accrued expenses, compensation, and other assets		2,575			5,868
Net operating loss carryforwards (1)		2,648			2,648
Other investments and investment securities		2,610			2,553
Valuation allowance		(3,852	)		(5,957	)
Total deferred tax assets		22,253			22,812
Deferred tax liabilities:
Goodwill and other intangibles		42,226			42,408
Total deferred tax liabilities		42,226			42,408
Deferred tax liability, net	$	19,973		$	19,596

(1)As of June 30, 2026, the Company had an estimated $11.1 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had no net carrying value as of June 30, 2026.

Page 24 of 62

The following table presents the components of the Company's tax provision for the three and six months ended June 30, 2026 and 2025:

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2026			2025			2026		2025
Current
Federal	$	4,175		$	5,757		$	6,136	$	10,418
State		1,659			2,569			2,399		4,091
Deferred
Federal		(893	)		(1,709	)		370		(1,448	)
State		(224	)		(812	)		140		(543	)
Net provision for income taxes	$	4,717		$	5,805		$	9,045	$	12,518

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three and six months ended June 30, 2026 and 2025.

	Three Months Ended June 30,											Six Months Ended June 30,
(Dollars in thousands)	2026					2025						June 30,						June 30,
	Amount		Percent (1)			Amount			Percent (1)			Amount			Percent (1)			Amount		Percent (1)
Statutory Federal income tax provision	$	3,044		21	%	$	4,089			21	%	$	5,484			21	%	$	8,339		21	%
State and local income taxes, net of federal income tax benefit		816		6			889			5			1,726			7			1,812		5
Non-deductible expenses (benefits)		454		3			(562	)		(3	)		3,839			15			1,010		3
Valuation allowance against deferred tax assets		281		2			324			2			(2,105	)		(8	)		134		0
Change in effective state income tax rates and accrual		—		—			696			4			—			—			696		2
Other		122		1			369			2			101			0			527		1
Total income tax provision	$	4,717		33	%	$	5,805			30	%	$	9,045			35	%	$	12,518		32	%

(1)Percentage may not foot due to rounding.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. The Company has determined that a valuation allowance is necessary for net operating losses which the Company does not believe will be utilized as well as for deferred compensation in excess of statutory limits. Based upon these considerations, the Company determined the necessary valuation allowance as of June 30, 2026.

The Company has filed tax returns in many states. Federal, Utah, California, New York, Florida, and Texas tax filings of the Company for the tax years 2022 through the present are the more significant filings that are open for examination. For the three months ended June 30, 2026, Utah, California, Florida, New York, and Texas made up 34%, 7%, 6%, 5%, and 3% of the state and local income taxes, net of federal income tax benefit.

(8) STOCK OPTIONS AND RESTRICTED STOCK

The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 2018 Plan, which was approved by the Company’s stockholders on June 15, 2018. The terms of the 2018 Plan provide for grants of a variety of different type of stock awards to the Company’s employees and non-employee directors, including options, restricted stock, restricted stock units, or RSUs, PSUs, and stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020. On April 26, 2022, the Company’s Board of Directors approved an additional amendment to the 2018 Plan to further increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 14, 2022. On April 25, 2025, the Company’s Board of Directors approved an additional amendment to the 2018 Plan to further increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 12, 2025. A total of 7,710,968 shares of the Company’s common stock are issuable under the 2018 Plan, and 1,551,192 shares remained issuable as of June 30, 2026. Awards under the 2018 Plan are subject to certain limitations as set forth in the 2018 Plan, which will terminate when all shares of common stock authorized for delivery have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2018 Plan, whichever occurs first.

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The Company’s Board of Directors approved the 2015 Non-Employee Director Stock Option Plan, or the 2015 Director Plan, on March 12, 2015, which was approved by the Company’s shareholders on June 5, 2015, and on which exemptive relief to implement the 2015 Director Plan was received from the Securities and Exchange Commission, or SEC, on February 29, 2016. A total of 300,000 shares of the Company’s common stock were issuable under the 2015 Director Plan, and 258,334 remained issuable as of June 15, 2018. Effective June 15, 2018, the 2018 Plan was approved, and these remaining shares were rolled into the 2018 Plan. Under the 2015 Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the 2015 Director Plan, the Company granted options to purchase 12,000 shares of the Company’s common stock to a non-employee director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the 2015 Director Plan vested annually, as defined in the 2015 Director Plan. The term of the options could not exceed ten years.

Additional shares are only available for future issuance under the 2018 Plan. As of June 30, 2026, 779,818 options on the Company’s common stock were outstanding under the Company’s plans, all of which have previously vested and are exercisable. Additionally, as of June 30, 2026, there were 593,472 unvested shares of restricted stock, 676,562 unvested PSUs, 89,310 unvested RSUs, and 414,648 vested, unissued RSUs outstanding under the 2018 Plan. As of June 30, 2026, the total remaining unrecognized compensation cost related to unvested restricted stock, RSUs, and PSUs was $8.6 million, which is expected to be recognized over the next 11 quarters. Total stock-based compensation expense was $1.9 million and $4.0 million, or $0.08 and $0.16 per diluted common share, for the three and six months ended June 30, 2026 and $1.7 million and $3.4 million, or $0.07 and $0.14 per diluted common share, for the three and six months ended June 30, 2025.

The fair value of each restricted stock grant, each restricted stock unit, and each performance stock unit is determined on the date of grant by the closing market price of the Company’s common stock on the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. There were no options granted during the six months ended June 30, 2026 and 2025.

The Company’s Compensation Committee of the Board of Directors grants PSUs, to certain officers and employees of the Company. Granted PSUs are subject to specified performance criteria for a particular performance period. The number of PSUs that vest can range from zero to 200% of the grant amount. In addition, dividends that accrue during the vesting period are reinvested in dividend equivalent PSUs. PSUs and the related dividend equivalent PSUs are converted into shares of common stock after vesting. Once the PSUs and dividend equivalent PSUs have vested, shares of common stock are delivered.

The PSUs have vesting conditions based upon certain levels of total pre-tax income as well as return on common equity attained over a three-year period. The PSUs cliff vest after three years based upon the performance of the Company. Dividend equivalent PSUs accumulate and convert to additional shares for the benefit of the grantee at the vesting date or are forfeited if the performance conditions are not met. The following table presents the PSU activity for the six months ended June 30, 2026 and the year ended December 31, 2025.

	Number of Shares				Grant Price Per Share		Weighted Average Grant Price
Outstanding at December 31, 2024		512,131		$	6.08 - 8.97		$	7.30
Granted		311,723				8.47		8.47
Cancelled		—				—		—
Vested		—				—		—
Outstanding at December 31, 2025		823,854			6.08 - 8.97			7.74
Granted		216,940				10.34		10.34
Cancelled		—				—		—
Vested (1)		(296,444	)			6.08		6.08
Outstanding at March 31, 2026		744,350			8.47 - 10.36			9.17
Granted		—				—		—
Cancelled		(67,788	)		8.47 - 8.97			8.71
Vested (1)		—				—		—
Outstanding at June 30, 2026		676,562		$	8.47 - 10.36		$	9.21

(1)During the three and six months ended June 30, 2026, 0 and 652,577 shares were used in connection with the vesting and settlement of PSUs.

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The following table presents restricted stock activity for the six months ended June 30, 2026 and the year ended December 31, 2025.

	Number of Shares				Grant Price Per Share		Weighted Average Grant Price
Outstanding at December 31, 2024		909,028		$	4.89 - 10.32		$	8.30
Granted		332,918			8.47 - 10.57			8.63
Cancelled		(5,373	)		4.89 - 10.32			9.16
Vested (1)		(484,823	)		4.89 - 8.97			7.70
Outstanding at December 31, 2025		751,750			8.08 - 10.57			8.83
Granted		344,206				10.36		10.36
Cancelled		(1,569	)		9.37 - 10.32			9.82
Vested		(374,797	)		8.08 - 9.37			8.67
Outstanding at March 31, 2026		719,590			8.47 - 10.57			9.64
Granted		—				—		—
Cancelled		(33,140	)		8.47 - 10.57			—
Vested (1)		(92,978	)		8.47 - 10.36			—
Outstanding at June 30, 2026 (2)		593,472		$	8.47 - 10.57		$	8.77

(1)The aggregate fair value of the restricted stock vested, on the date of vesting, was $0.9 million and $4.7 million for the three and six months ended June 30, 2026 and $4.2 million for the year ended December 31, 2025.

(2)The aggregate fair value of the unvested restricted stock was $6.1 million as of June 30, 2026. The remaining vesting period was 2.7 years at June 30, 2026.

The following table presents stock option activity for the six months ended June 30, 2026 and the year ended December 31, 2025.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2024		913,909		$	2.14 - 9.38		$	6.52
Granted		—				—		—
Cancelled		(33,770	)		4.89 - 9.38			7.37
Exercised		(82,081	)		4.89 - 7.25			6.29
Outstanding at December 31, 2025		798,058			2.14 - 7.25			6.50
Granted		—				—		—
Cancelled		(607	)			—		5.98
Exercised (1)		(2,224	)		4.89 - 7.25			5.85
Outstanding at March 31, 2026		795,227			2.14 - 7.25			6.50
Granted		—				—		—
Cancelled		(2,255	)		4.89 - 7.25			6.52
Exercised (1)		(13,154	)		4.89 - 7.25			6.68
Outstanding at June 30, 2026 (2)		779,818		$	2.14 - 7.25		$	6.50
Options exercisable at:
December 31, 2025		798,058		$	2.14 - 9.38		$	6.50
June 30, 2026 (2)		779,818		$	2.14 - 7.25		$	6.50

(1)The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three and six months ended June 30, 2026 and $0.3 million for the year ended December 31, 2025.

(2)The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at June 30, 2026 and the related exercise price of the underlying options, was $2.9 million for outstanding options, all of which had previously vested. The remaining contractual life was 3.7 years for outstanding options at June 30, 2026.

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The following table presents activity for the unvested options outstanding under the plans for the six months ended June 30, 2026 and the year ended December 31, 2025.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2024		84,623		$	4.89 - 6.79		$	6.37
Granted		—				—		—
Cancelled		(119	)			4.89		4.89
Vested (1)		(84,504	)		4.89 - 6.79			6.37
Outstanding at December 31, 2025		—				—		—
Granted		—				—		—
Cancelled		—				—		—
Vested		—				—		—
Outstanding at March 31, 2026		—				—		—
Granted		—				—		—
Cancelled		—				—		—
Vested		—				—		—
Outstanding at June 30, 2026		—		$		—	$	—

(1)The intrinsic value of the options vested was $0.1 million for the year ended December 31, 2025.

During the three and six months ended June 30, 2026, the Company granted 89,310 RSUs with a vesting date of June 9, 2027 at a grant price of $9.63 and during the year ended December 31, 2025, the Company granted 86,410 RSUs with a vesting date of June 12, 2026 at a grant price of $9.49. For the RSUs granted in 2026 and 2025, unitholders had the option of deferring settlement until a future date if the recipient makes a formal election under the guidelines of IRC Section 409A. As of June 30, 2026, there were 503,958 RSUs outstanding, including 414,648 which had previously vested.

(9) SEGMENT REPORTING

The Company has five business segments, which include four lending segments and one non-operating segment, which are reflective of how Company management makes decisions about its business and operations.

The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and taxi medallion lending. The recreation and home improvement lending segments are operated by the Bank and loans are made to borrowers residing nationwide. The recreation lending segment is a consumer finance business that works with third-party dealers and financial service providers to finance RVs, boats, collector cars, and other consumer recreational equipment, of which RVs, boats, and collector cars make up 53%, 22%, and 13% of the segment portfolio, with no other product lines at or above 10%, as of June 30, 2026. The highest concentrations of recreation loans was in Texas and Florida at 17% and 9% of loans outstanding with no other states at or above 10%, as of June 30, 2026. The home improvement lending segment works with contractors and financial service providers to finance residential home improvement with the largest product lines being swimming pools, roofs, and windows at 40%, 25%, and 10% of total home improvement loans outstanding, and with no other product lines at or above 10% as of June 30, 2026. The highest concentrations of home improvement loans are in Florida and Texas at 15% and 14% of loans outstanding, with no other states at or above 10%, as of June 30, 2026. The commercial lending segment focuses on serving a wide variety of industries, with concentrations in manufacturing and wholesale trade making up 61% and 14%, of the loans outstanding, with no other product lines at or above 10% as of June 30, 2026. The commercial lending segment invests across the United States with concentrations in California, Wisconsin, and New York having 19%, 14%, and 11% of the segment portfolio, with no other states having a concentration at or above 10%, as of June 30, 2026. The taxi medallion lending segment arose in connection with the financing of taxi medallions, taxis, and related assets, primarily all of which are located in the New York City metropolitan area as of June 30, 2026.

The Company's corporate and other investments segment is a non-operating segment that includes items not allocated to the Company's operating segments such as investment securities, equity investments, intercompany eliminations, goodwill, and other corporate elements. The Company allocates portions of centrally incurred costs inclusive of overhead and interest expense formulaically based upon overall capital allocated to the lending segments.

As part of segment reporting, capital ratios for all operating segments have been normalized as a percentage of consolidated total equity divided by total assets, with the net adjustment applied to corporate and other investments. In addition, the commercial segment primarily represents the mezzanine lending business, with certain legacy commercial loans (immaterial to total) allocated to corporate and other investments.

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The Company's chief operating decision maker, or CODM, is a group comprised of the Executive Chairman, Chief Executive Officer, and Chief Financial Officer, and other senior members of management. The CODM primarily uses segment information to identify areas to improve efficiency of resources allocation, determine where to reinvest profits, and minimize unnecessary expenses. The CODM assesses segment performance mainly through selected financial ratios such as returns on average assets and net interest margin, which identifies areas requiring action.

The following table presents segment data as of and for the three months ended June 30, 2026.

Three Months Ended June 30, 2026	Consumer Lending
(Dollars in thousands)	Recreation		Home Improvement		Commercial Lending		Taxi Medallion Lending			Corporate and Other Investments		Consolidated
Total interest income	$	57,101	$	20,929	$	3,505	$	167		$	2,675	$	84,377
Total interest expense		15,865		7,273		1,371		29			2,592		27,130
Net interest income		41,236		13,656		2,134		138			83		57,247
Provision (benefit) for credit losses		17,501		4,066		700		(68	)		74		22,273
Net interest income after credit loss provision		23,735		9,590		1,434		206			9		34,974
Other income, net		1,417		3		237		1,332			1,487		4,476
Other expenses: