Medallion Financial (MFIN) investor relations material

Executive summary

• Loans and loans held for sale reached $2.936B, up 14.7% YoY; total assets were $3.361B at September 30, 2026.

• Q3 originations rose 41% YoY to $603.9M; net interest income increased 5% to $58.4M as net interest margin fell to 7.34% from 8.21%.

• Net income attributable to stockholders was $2.4M, or $0.10 per diluted share, versus $7.8M and $0.32 a year earlier; higher credit provisions were a major factor.

Financial highlights

• Q3 interest income rose 10% YoY to $88.9M; interest expense increased to $30.5M from $25.1M.

• Provision for credit losses was $30.8M versus $18.6M YoY; $5.6M related to consumer loan growth, versus $1.9M a year earlier.

• Operating expenses increased to $24.0M from $20.7M, reflecting higher staffing, servicing, regulatory and compensation costs.

• Nine-month net income attributable to stockholders was $14.8M versus $30.8M; net interest income rose to $169.7M from $160.5M.

• Loan sales of just under $40M across four pools generated a net gain of ~3% after deferred costs.

Outlook and guidance

• Q4 originations are seasonal; October volumes were slightly ahead of the prior year but below Q2 and early-Q3 peaks.

• 2027 growth depends on economic conditions; strong conditions could support growth levels seen this year, while a weaker economy could slow growth.

• Long-term target remains asset growth from $3B to $5B over five years; management said it remains on target.

• Q4 loan rates are increasing across portfolios, expected to moderate volume and support NIM over time; no significant Q4 NIM step-down is expected.

• Q4 operating costs are expected to be similar to Q3, with incremental increases in 2027; funding costs may rise as maturing deposits are replaced at prevailing rates.