MBNKO

EX-99.1

2 mfin-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE:

MEDALLION FINANCIAL CORP. REPORTS 2026 THIRD QUARTER RESULTS

NEW YORK, NY – October 29, 2026 – Medallion Financial Corp. (NASDAQ: MFIN) (“Medallion” or the “Company”), a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic partners, today announced its financial results for the quarter ended September 30, 2026.

2026 Third Quarter Highlights

• Total net income attributable to stockholders for the third quarter was $2.4 million, or $0.10 per share, compared to $7.8 million, or $0.32 per share, in the prior year quarter.

• Net interest income grew 5% to $58.4 million from $55.7 million in the prior year quarter.

• Net interest margin (“NIM”) was 7.34% compared to 8.21% in the prior year quarter.

• Loan originations grew 41% to $603.9 million, compared to $427.4 million in the prior year quarter, and included $259.4 million of strategic partnership loan originations in the current quarter, compared to $208.4 million in the prior year quarter.

• Total loan portfolio as of September 30, 2026 was $2.936 billion, up 15% compared to $2.559 billion a year ago.

• Credit loss provision was $30.8 million, compared to $18.6 million in the prior year quarter. The current quarter credit loss provision included approximately $5.6 million related to allowance for credit losses tied to consumer loan growth, compared to $1.9 million in the prior year quarter.

• Net book value per share at September 30, 2026 was $17.73 compared to $17.07 a year ago.

• The Company declared and paid a quarterly cash dividend of $0.14 per share.

• The Company repurchased 483,871 shares of its common stock at an average cost of $11.48 per share for $5.6 million.

• Subsequent to quarter end, the Board of Directors approved a new $40 million stock repurchase program.

Executive Commentary

Andrew Murstein, President and Chief Executive Officer of Medallion Financial Corp., commented, "Our third quarter results further demonstrate the strength of our consumer lending platform. We continued to grow our loan portfolio, with total assets reaching a record level of more than $3.3 billion. During the quarter, recreation and home improvement loans increased 5% and 7%, respectively, from last quarter. They have grown 16% and 18% over the past twelve months. Total loan originations increased 41% year-over-year to $603.9 million. We are especially pleased with the growth in our home improvement loan origination volume, which grew by 145% in this quarter from last year.

As we’ve said previously, growth at these levels requires us to recognize large upfront day-one provisions, which reduced earnings significantly during the quarter. While these provisions result in an immediate impact on reported earnings, they reflect the expansion of our loan portfolio and position us to generate increased earnings and shareholder value over time. These day-one provisions are a large part of the decrease in earnings this quarter from the prior year.

We were also pleased to have successfully raised an additional $55 million of preferred stock at Medallion Bank through the reopening of our investment grade rated Series G Preferred Stock, underscoring the confidence investors continue to place in our business model and growth strategy. We expect this additional capital to be accretive to our shareholders as we deploy it in our consumer lending business in the coming quarters.

In addition, we repurchased $5.6 million of our common stock during the quarter and, subsequent to quarter end, completed our previously authorized $40 million stock repurchase program. Our board of directors has authorized a new $40 million stock repurchase program; we intend to remain disciplined and opportunistic in repurchasing shares while continuing to support the growth of our business and create long-term shareholder value.

Lastly, we were able to repurchase $15 million of our trust preferred securities in October at a meaningful discount, which will result in a gain on the extinguishment of that debt in the upcoming fourth quarter."

Business Highlights

Recreation Lending

• Originations were $198.2 million during the quarter, up 40% compared to $141.7 million a year ago.

• Recreation loans, including loans held for investment and loans held for sale, grew 16% to $1.853 billion, or 63% of total loans, as of September 30, 2026, compared to $1.603 billion, or 63%, a year ago.

• Average loan size as of September 30, 2026 was $23,000 with a weighted average FICO score, measured at the time of loan origination, of 683.

• Interest income grew 14% to $61.0 million for the quarter, from $53.6 million in the prior year quarter.

• The weighted average interest rate was 15.01% at quarter-end, compared to 15.17% a year ago.

• Recreation loans 90 days or more past due were $11.9 million, or