The following presents the condensed financial information of Medallion Financial Corp. (parent company only).

Condensed Balance Sheets


	December 31,
(Dollars in thousands)	2025		2024
Assets
Cash	$	20,102	$	26,395
Investment in bank subsidiary (1)		618,677		552,326
Investment in non-bank subsidiaries		82,080		96,653
Income tax receivable		11,859		21,870
Intercompany receivable		850		—
Net loans receivable		542		782
Loan collateral in process of foreclosure		159		361
Other assets		2,994		4,933
Total assets	$	737,263	$	703,320
Liabilities
Long-term borrowings (2)	$	146,693	$	177,169
Short-term borrowings		31,250		—
Deferred tax liabilities		38,453		38,096
Intercompany payables		—		31,435
Other liabilities		12,821		17,662
Total liabilities		229,217		264,362
Parent company equity		408,617		370,170
Non-controlling interest		99,429		68,788
Total stockholders’ equity		508,046		438,958
Total liabilities and equity	$	737,263	$	703,320

(1)

Includes $168.5 million and $169.9 million of goodwill and intangible assets of the Company which relate specifically to the Bank and $99.4 million and $68.8 million related to non-controlling interests in consolidated subsidiaries as of December 31, 2025 and 2024.

(2)

Includes $1.8 million and $2.3 million of deferred financing costs as of December 31, 2025 and 2024.

Condensed Statements of Operations


	Year Ended December 31,
(Dollars in thousands)	2025			2024			2023
Dividend income	$	29,616		$	25,600		$	25,125
Interest income		804			1,260			1,243
Total dividend and interest income		30,420			26,860			26,368
Interest expense		14,893			14,800			12,771
Net interest income		15,527			12,060			13,597
Benefit for credit losses		(229	)		(133	)		(310	)
Net interest income after allowance for credit losses		15,756			12,193			13,907
Other income, net (1)		1,266			997			2,625
Other expense, net		21,605			18,656			22,781
Loss before income taxes and undistributed earnings of subsidiaries		(4,583	)		(5,466	)		(6,249	)
Income tax benefit		7,083			3,095			5,291
Loss before undistributed earnings of subsidiaries		2,500			(2,371	)		(958	)
Undistributed earnings of subsidiaries		40,544			38,249			56,037
Net income attributable to parent company	$	43,044		$	35,878		$	55,079

(1)

Includes $1.3 million, $1.0 million, and $3.1 million of net gains on the disposition of taxi medallion assets for the years ended December 31, 2025, 2024, and 2023.

Condensed Statements of Cash Flow


	Year Ended December 31,
(Dollars in thousands)	2025			2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income/net decrease in net assets resulting from operations	$	43,044		$	35,878		$	55,079
Adjustments to reconcile net income/net decrease in net assets resulting from operations to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(71,606	)		(63,846	)		(81,164	)
Benefit for credit losses		(229	)		(133	)		(310	)
Depreciation and amortization		2,237			2,252			2,198
Change in deferred and other tax assets/liabilities, net		10,368			2,458			(947	)
Net change in loan collateral in process of foreclosure		—			—			252
Stock-based compensation expense		6,735			6,053			4,713
Decrease in other assets		1,939			1,680			990
Decrease (increase) in deferred financing costs		(10	)		(272	)		(1,437	)
Decrease in intercompany payables		(503	)		(1,165	)		(778	)
Decrease in other liabilities		(4,796	)		(7,614	)		(134	)
Net cash used for operating activities		(12,821	)		(24,709	)		(21,538	)
CASH FLOWS FROM INVESTING ACTIVITIES
Loans originated		(72	)		(110	)		(1,612	)
Proceeds from principal receipts, sales, and maturities of loans and investments		541			1,864			2,057
Proceeds from sale and principal payments of loan collateral in process of foreclosure		202			434			954
Investment in subsidiaries		(11,116	)		—			(5,125	)
Dividends from subsidiaries		29,616			25,600			25,125
Net cash provided by investing activities		19,171			27,788			21,399
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from funds borrowed		—			10,000			51,500
Repayments of funds borrowed		—			(3,000	)		(33,000	)
Treasury stock repurchased		(986	)		(4,606	)		—
Dividends paid to shareholders		(10,971	)		(9,394	)		(7,703	)
Payment of withholding taxes on net settlement of vested stock		(1,202	)		(944	)		(768	)
Proceeds from the exercise of stock options		516			259			442
Net cash (used for) provided by financing activities		(12,643	)		(7,685	)		10,471
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(6,293	)		(4,606	)		10,332
Cash and cash equivalents, beginning of period		26,395			31,001			20,669
Cash and cash equivalents, end of period	$	20,102		$	26,395		$	31,001