# MEDALLION FINANCIAL CORP (MFIN)

Informational only - not investment advice.

CIK: 0001000209
SIC: 6199 Finance Services
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [SIC Major Group 61](/major-group/61/) > [SIC 6199 Finance Services](/industry/6199/)
Latest 10-K filed: 2026-03-10
SEC page: https://www.sec.gov/edgar/browse/?CIK=1000209
Filing source: https://www.sec.gov/Archives/edgar/data/1000209/000119312526100121/mfin-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-10 · accession 0001193125-26-100121 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001000209.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 315,320,000 USD | 2025 | verified |
| Net income | 43,044,000 USD | 2025 | verified |
| Assets | 2,955,464,000 USD | 2025 | verified |
| Net margin | 13.65% | 2025 | computed |
| Revenue YoY | +8.47% | 2025 | computed |
| ROE | 10.53% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | MFIN | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 13.7% | 4.4% | 75 | 33 |
| Revenue growth | 8.5% | 15.2% | 30 | 34 |
| ROE | 10.5% | -2.1% | 78 | 33 |
| ROA | 1.5% | -0.1% | 71 | 35 |
| Liabilities / equity | 5.99 | 2.00 | 69 | 33 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6199 Finance Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 315320000 | USD | 2025 | 2026-03-10 |
| Net income | 43044000 | USD | 2025 | 2026-03-10 |
| Assets | 2955464000 | USD | 2025 | 2026-03-10 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001000209.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 4,997,000 | 6,020,000 | 100,836,000 | 132,562,000 | 144,962,000 | 158,966,000 | 196,621,000 | 251,040,000 | 290,702,000 | 315,320,000 |
| Net income |  |  | -25,046,000 | -1,762,000 | -34,783,000 | 54,108,000 | 43,840,000 | 55,079,000 | 35,878,000 | 43,044,000 |
| Diluted EPS | 0.97 | 0.01 | -1.03 | -0.07 | -1.42 | 2.17 | 1.83 | 2.37 | 1.52 | 1.78 |
| Operating cash flow |  |  | 66,551,000 | 64,935,000 | 78,706,000 | 78,726,000 | 108,740,000 | 113,783,000 | 108,680,000 | 126,283,000 |
| Dividends paid |  |  |  |  | 0.00 | 0.00 | 7,543,000 | 7,703,000 | 9,394,000 | 10,972,000 |
| Share buybacks |  |  |  |  | 0.00 | 0.00 | 20,619,000 | 0.00 | 4,606,000 | 986,000 |
| Assets |  | 1,077,357,000 | 1,381,846,000 | 1,541,667,000 | 1,642,411,000 | 1,873,057,000 | 2,259,879,000 | 2,587,827,000 | 2,868,606,000 | 2,955,464,000 |
| Liabilities |  | 913,127,000 | 1,091,642,000 | 1,207,199,000 | 1,337,850,000 | 1,517,229,000 | 1,889,355,000 | 2,176,053,000 | 2,429,648,000 | 2,447,418,000 |
| Stockholders' equity |  | 164,230,000 | 262,608,000 | 263,148,000 | 231,408,000 | 287,040,000 | 301,736,000 | 342,986,000 | 370,170,000 | 408,617,000 |
| Cash and cash equivalents |  | 42,513,000 | 57,713,000 | 17,700,000 | 54,743,000 | 64,482,000 | 33,172,000 | 52,591,000 | 98,238,000 | 136,266,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  | -24.84% | -1.33% | -23.99% | 34.04% | 22.30% | 21.94% | 12.34% | 13.65% |
| Return on equity |  |  | -9.54% | -0.67% | -15.03% | 18.85% | 14.53% | 16.06% | 9.69% | 10.53% |
| Return on assets |  |  | -1.81% | -0.11% | -2.12% | 2.89% | 1.94% | 2.13% | 1.25% | 1.46% |
| Liabilities / equity |  | 5.56 | 4.16 | 4.59 | 5.78 | 5.29 | 6.26 | 6.34 | 6.56 | 5.99 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/MFIN/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001000209.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.32 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.67 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.62 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 65,886,000 | 11,230,000 | 0.48 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 67,585,000 | 14,318,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 67,070,000 | 10,024,000 | 0.42 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 70,704,000 | 7,101,000 | 0.30 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 76,409,000 | 8,611,000 | 0.37 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 76,519,000 | 10,142,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 75,425,000 | 12,014,000 | 0.50 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 77,442,000 | 11,069,000 | 0.46 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 80,771,000 | 7,763,000 | 0.32 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 81,683,000 | 12,198,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 79,068,000 | 4,953,000 | 0.20 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 84,377,000 | 7,445,000 | 0.31 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Risk Factors

Verbatim Item 1A Risk Factors from MFIN's latest 10-K: [/company/MFIN/risk-factors/](/company/MFIN/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1000209/000119312526335042/mfin-20260630.htm

Extracted from a substantive MD&A body after the formal Item 2 span was a TOC or reference stub.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

CONSOLIDATED RESULTS OF OPERATIONS

Three and Six Months Ended June 30, 2026 Compared to the Three and Six Months Ended June 30, 2025

Net income attributable to stockholders was $7.4 million and $12.4 million, or $0.31 and $0.51 per diluted share, for the three and six months ended June 30, 2026, compared to $11.1 million and $23.1 million, or $0.46 and $0.96 per diluted share, for the three and six months ended June 30, 2025.

Total interest income was $84.4 million and $163.4 million for the three and six months ended June 30, 2026, compared to $77.4 million and $152.9 million for the three and six months ended June 30, 2025. The increase in interest income reflects the continued growth in our lending segments, particularly recreation and home improvement lending, as well as our efforts to increase the weighted average interest rates charged on loans over the past several years, with the average yield on our loans increasing to 12.28% and 12.21% for the three and six months ended June 30, 2026, compared to 12.27% and 12.16% for the three and six months ended June 30, 2025.

Loans, inclusive of loans held for sale, were $2.795 billion as of June 30, 2026, comprised of recreation ($1.760 billion), home improvement ($885.6 million), commercial ($126.2 million), strategic partnership ($21.4 million), and taxi medallion ($1.3 million) loans. We had an allowance for credit losses as of June 30, 2026 of $122.7 million, which was attributable to recreation (74%), home improvement (17%), commercial (8%), and taxi medallion (less than 1%) loans.

Loans increased $176.7 million, or 7% during the quarter and increased $227.9 million, or 9%, since December 31, 2025. Originations for the three and six months ended June 30, 2026 were $611.6 million and $988.5 million compared to $375.1 million and $656.7 million for the three and six months ended June 30, 2025. Originations for the three and six months ended June 30, 2026 included $247.1 million and $417.1 million of strategic partnership program loans, compared to $168.6 million and $304.9 million of strategic partnership program loans for the three and six months ended June 30, 2025. Originations increased in both of our consumer lending segments in the current quarter from the prior year quarter, with recreation loan originations increasing 60% and home improvement loan originations increasing 137% as we focus on expanding both programs and deploying the capital raised over the past year.

Page 53 of 62

The provision for credit losses was $22.3 million and $44.7 million for the three and six months ended June 30, 2026, compared to $21.6 million and $43.6 million for the three and six months ended June 30, 2025. The provision for the three and six months ended June 30, 2026 included net charge-offs of $16.3 million and $36.8 million, compared to $15.0 million and $34.0 million in the prior year periods, with recreation loans accounting for $13.3 million and $31.0 million compared to $11.9 million and $28.3 million in the prior year and home improvement loans accounting for $2.9 million and $5.8 million compared to $3.8 million and $6.9 million in the prior year. Credit provisions were $0.8 million and $1.2 million for commercial loans for the three and six months ended June 30, 2026 compared to $2.9 million and $6.0 million for the three and six months ended June 30, 2025. The provision for credit losses for the three and six months ended June 30, 2026 also reflected the impact of growth of our consumer loan portfolio, particularly the recreation loan portfolio which grew 5% during the quarter and 9% during the six month period compared to the prior year periods, and which required an allowance for credit losses of approximately $5.3 million and $6.8 million for the three and six months ended June 30, 2026. Net charge-offs in the recreation loan portfolio, excluding loans held for sale, continued to be elevated from historic norms, however net charge-offs improved to 3.14% and 3.75% for the three and six months ended June 30, 2026 from 3.25% and 3.94% for the three and six months ended June 30, 2025. For home improvement loans, net charge offs were 1.37% and 1.40% for the three and six months ended June 30, 2026 compared to 1.87% and 1.71% for the three and six months ended June 30, 2025. As of June 30, 2026, current loans (those less than 30 days past due) were 95.39% and 98.96% of the recreation and home improvement loan portfolios, compared to 95.61% and 99.14% at June 30, 2025. Charge-off activity and loan delinquency are two of the more prominent indicators of future loss experience and thus have a significant impact on our determination of allowance for credit loss. As of June 30, 2026, the allowance for credit loss was 5.16% and 2.42% of recreation and home improvement loans, compared to 5.05% and 2.54% a year ago. See Note 4 of the accompanying consolidated financial statements for additional information on loans and allowance for credit losses.

Interest expense was $27.1 million and $52.1 million for the three and six months ended June 30, 2026, compared to $24.1 million and $48.1 million for the three and six months ended June 30, 2025, reflecting both higher average borrowings and higher average borrowing costs during the three and six months ended June 30, 2026, with borrowing costs expected to remain elevated in the current interest rate environment. The average cost of borrowed funds was 4.32% and 4.29% for the three and six months ended June 30, 2026, compared to 4.20% and 4.19% for the three and six months ended June 30, 2025. The increases of 12 and 10 basis points over the prior year quarter are largely attributable to the increased cost of newly issued certificates of deposit used both to fund our growth and to replace older maturing deposits with lower rates, with our average deposit costs increasing 12 basis points both during the three and six months to 3.96% and 3.95%. Assuming general market rate stability, we expect our cost of funds to further increase as we replace upcoming deposit maturities with new issues. During the three and six months ended June 30, 2026, we issued certificates of deposit for 36 months at rates as high as 4.20% and for 60 months at rates as high as 4.25%. Average debt outstanding was $2.519 billion and $2.451 billion for the three and six months ended June 30, 2026 up from $2.297 billion and $2.316 billion for the three and six months ended June 30, 2025, as we increased our borrowings, particularly certificates of deposit to fund our loan growth. In addition, in April 2026, we issued $75.0 million aggregate principal amount of our 8.25% senior notes due 2031, which will increase our interest costs in the future.

Net interest income was $57.2 million and $111.3 million for the three and six months ended June 30, 2026, an increase of 7% and 6% from $53.4 million and $104.8 million in the prior year period. The net interest margin before the impact of the allowance for credit losses was 7.94% for both the three and six months ended June 30, 2026, compared to 8.09% and 8.01% for the three and six months ended June 30, 2025, reflecting the above, particularly our higher average cost of borrowing over the prior year periods, despite slight increases in our loan yields over the prior year periods. With the rates we charge on outstanding loans being fixed, and our average cost of funds increasing, our net interest margin has tightened compared to prior years, as we only increase our yield through higher rates charged on new originations, and have only been able to pass along a portion of rate increases on new originations. During the first half of 2026, we lowered the average rate charged on recreation loans to bring rates on new originations more in line with the market, with the intent that the lower coupon will yield a stronger overall borrower and a lower charge-off rate in the recreation portfolio over time. This change will have a negative impact on our net interest margin to some extent; however, we believe this will improve our loss adjusted margin. Additionally, to the extent that our loan portfolio mix changes significantly in the future, as home improvement loans become a larger portion of our total loan portfolio, we may experience changes in our net interest margins.

Net other income, which is typically comprised of gains on equity investments, gains related to and in connection with the disposition of taxi medallion assets, gains on the sale of consumer loans, fees associated with our strategic partnership program, prepayment fees, servicing fee income, and late charges, was $4.5 million and $6.9 million for the three and six months ended June 30, 2026, compared to $9.2 million and $20.8 million for the three and six months ended June 30, 2025. Net gains on equity investments were $0.2 million and $0.5 million for the three and six months ended June 30, 2026, compared to $6.1 million and $15.5 million for the three and six months ended June 30, 2025. Additionally, for the three and six months ended June 30, 2026, other income included $1.3 million and $2.4 million of gains on the disposition of taxi medallion assets, $1.3 million of gains on the sale of recreation loans with no gains in the first quarter, as well as $1.1 million and $2.0 million of strategic partnership fees. This compares to $0.7 million and $1.6 million of gains on the disposition of taxi medallion assets, $1.3 million of gains on the sale of recreation loans with no gains in the first quarter, and $0.8 million and $1.5 million of strategic partnership fees for the three and six months ended June 30, 2025.

Page 54 of 62

Operating expenses were $25.0 million and $47.3 million for the three and six months ended June 30, 2026, compared to $21.5 million and $42.3 million for the three and six months ended June 30, 2025. Such amounts were inclusive of salaries and benefits of $11.2 million and $22.2 million during the current quarter and six-month period, compared to $10.1 million and $20.1 million for the prior year periods, with the increase reflecting higher costs associated with a greater head count at our operating subsidiary, Medallion Bank, and higher equity compensation costs in the current periods. Additionally, other expenses were higher, particularly loan servicing expense reflecting the overall larger portfolio. We expect our operating expenses to further increase as we continue to build capacity as part of our growth strategy.

ASSET/LIABILITY MANAGEMENT

Interest Rate Sensitivity

We, like other financial institutions, are subject to interest rate risk to the extent that our interest-earning assets (consisting of consumer, commercial, and taxi medallion loans, and investment securities) reprice on a different basis over time in comparison to our interest-bearing liabilities (consisting primarily of bank certificates of deposit, historically credit facilities, and borrowings from banks and other lenders).

Having interest-bearing liabilities that mature or reprice more frequently on average than assets may be beneficial in times of declining interest rates, although such an asset/liability structure may result in declining net earnings during periods of rising interest rates. Abrupt increases in market rates of interest may have an adverse impact on our earnings until we are able to originate new consumer loans at the higher prevailing interest rates. Conversely, having interest-earning assets that mature or reprice more frequently on average than liabilities may be beneficial in times of rising interest rates, although this asset/liability structure may result in declining net earnings during periods of falling interest rates. This mismatch between maturities and interest rate sensitivities of our interest-earning assets and interest-bearing liabilities results in interest rate risk.

The effect of changes in interest rates is mitigated by regular turnover of the portfolios. We believe that

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1000209/000119312526100121/mfin-20251231.htm
Complete FY 2025 MD&A: /company/MFIN/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-10
Report date: 2025-12-31

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OBJECTIVE

The information contained in this section should be read in conjunction with the consolidated financial statements and the accompanying notes thereto for the years ended December 31, 2025, 2024, and 2023. This section is intended to provide management's perspective of our financial condition and results of operations. In addition, this section contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors that could cause actual results and conditions to differ materially from those projected in these forward-looking statements are described in the Risk Factors section on page 18. Additionally, more information about our business activities can be found in “Business.”

34

COMPANY BACKGROUND

We are a specialty finance company whose focus and growth has been our consumer finance and commercial lending businesses operated by Medallion Bank, or the Bank, and Medallion Capital, Inc., or Medallion Capital. The Bank is a wholly-owned subsidiary that originates consumer loans for the purchase of recreational vehicles, boats, collector cars, and home improvements, and provides loan origination and other services to fintech partners. Medallion Capital is a wholly-owned subsidiary that originates commercial loans through its mezzanine financing business. As of December 31, 2025, our consumer loans represented 95% of our gross loan portfolio, inclusive of loans held for sale, and commercial loans represented 5%. Total assets were $2.96 billion as of December 31, 2025 and $2.87 billion as of December 31, 2024.

Our loan-related earnings depend primarily on our level of net interest income. Net interest income is the difference between the total yield on our loan portfolio and the average cost of borrowed funds. We fund our operations through a wide variety of interest-bearing sources, including bank certificates of deposit issued to consumers, debentures issued to and guaranteed by the SBA, privately placed notes, trust preferred securities, and preferred stock of the Bank. Net interest income fluctuates with changes in the yield on our loan portfolios and changes in the cost of borrowed funds, as well as changes in the amount of interest-earning assets and interest-bearing liabilities held by us.

Net interest income is also affected by economic, regulatory, and competitive factors that influence interest rates, loan demand, and the availability of funding to finance our lending activities. We, like other financial institutions, are subject to interest rate risk to the degree that our interest-earning assets reprice, either due to inflation or other factors, on a different basis than our interest-bearing liabilities. We continue to monitor global supply chain disruptions, the impact of tariffs, gas prices, labor shortages, unemployment, and other factors contributing to U.S. inflation, the risk of recession and economic health, as well as other factors which contribute to competition and changes in the demand for our loan products. We have been, and continue to, seek borrowers with strong credit ratings and moderate the pace of our recent growth in the event of a potential economic downturn and in light of the current uncertainties and inflationary environment.

We also provide debt, mezzanine, and equity investment capital to companies in a variety of commercial industries. These investments may be venture capital style investments which may not be fully collateralized. Our investments are typically in the form of secured debt instruments with fixed interest rates accompanied by an equity stake or warrants to purchase an equity interest for a nominal exercise price (such warrants are included in equity investments on the consolidated balance sheets). Interest income is earned on the debt instruments.

The Bank is an industrial bank regulated by the FDIC and the Utah Department of Financial Institutions that originates consumer loans, raises deposits, and conducts other banking activities. The Bank generally provides us with our lowest cost of funds which it raises through bank certificates of deposit. To take advantage of this low cost of funds, historically we referred a portion of our taxi medallion and commercial loans to the Bank, which originated these loans, and have since been serviced by Medallion Servicing Corp., or MSC. However, other than in connection with dispositions of existing taxi medallion assets, the Bank has not originated any new taxi medallion loans since 2014 (and Medallion Financial Corp. has not originated any new taxi medallion loans since 2015) and is working with MSC to service its remaining portfolio, as it winds down. MSC earns referral and servicing fees for these activities.

In 2019, the Bank launched a strategic partnership program to provide lending and other services to fintech companies. The Bank entered into an initial partnership in 2020 and began issuing its first loans. The Bank continues to evaluate and launch additional partnership programs with fintech companies.

We continue to consider various alternatives for the Bank, which may include an initial public offering of its common stock, the sale of all or part of the Bank, a spin-off or other potential transaction. We do not have a deadline for its consideration of these alternatives, and there can be no assurance that this process will result in any transaction being announced or consummated.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

We follow financial accounting and reporting policies that are in accordance with Generally Accepted Accounting Principles, or GAAP. Some of these significant accounting policies require management to make difficult, subjective or complex judgments. The policies noted below, however, are deemed to be our “critical accounting policies” under the definition given to this term by the SEC. According to the SEC, “critical accounting policies” mean those policies that are most important to the presentation of a company’s financial condition and results of operations, and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.

The judgments used by management in applying the critical accounting policies may be affected by deterioration in the economic environment, which may result in changes to future financial results. Specifically, subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes to the allowance for credit losses in future periods, and the inability to collect on outstanding loans could result in increased credit losses.

35

Provision and Allowance for Credit Losses

The consumer loan allowance for credit losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for credit losses for recreation and home improvement loans, we segment our consumer loan portfolio by risk pool to reach what we believe to be an appropriate level of homogeneity and use a probability of default, or PD/loss given default, or LGD, model to calculate the allowance. For each loan, PD and LGD values are assigned based on the risk pool and delinquency status of the loan. Those values are determined by historical delinquent loan performance for the respective loan pool and actual loss rates within that pool, including the history of recoveries. The PD value time series for each loan is then modified using a model that incorporates statistically significant macroeconomic factors, such as unemployment rate and consumer spending, to predict increases or decreases in expected default rates. Those modifications are applied over a twelve-month reasonable and supportable forecast period followed by a six-month reversion period. As a final step, qualitative factors may be added to each loan pool based on management judgment, increasing or decreasing the size of the allowance for a particular loan pool. Performing loans are recorded at book value and the general reserve maintained to absorb expected losses is consistent with GAAP.

Management is primarily responsible for the overall adequacy of the allowance. The allowance is evaluated on a regular basis, at least quarterly, by management and is based upon management’s periodic review of the factors noted above. In addition, allowance adequacy is subject to independent credit reviews and a review of the allowance model. Regulators, as an integral part of their supervisory functions, periodically review our consumer loan portfolio and related allowance for credit losses. These regulatory agencies may require us to increase our allowance for credit losses or to recognize further loan charge-offs based upon their judgments, which may be different from ours. An increase in the allowance for credit losses required by these regulatory agencies could materially adversely affect our financial condition and results of operations.

Under the CECL lifetime loss standard in effect since January 1, 2023, we calculate the allowance for credit losses using both quantitative and qualitative factors. The quantitative loss factors applied in the methodology are periodically re-evaluated and adjusted to reflect changes in credit characteristics of our loans, loan prepayment and other cash flow-related behaviors, and macroeconomic factors. Periodically, we update our allowance model assumptions based on prior experience. In the fourth quarter of 2025, we updated our prepayment speed assumptions and calculation method, transitioning from a pooled analysis to a loan-level approach, which increased modeled prepayment speeds and had the effect of decreasing the allowance for credit losses for both recreation and home improvement loans. Earlier in 2025, we revised our assumptions to include a redevelopment of our macroeconomic factor model, which increased the allowance's sensitivity to unemployment, the consumer price index, and labor force participation. We also further segmented the recreation loan portfolio by credit risk and further segmented the home improvement portfolio by product type. These adjustments had the effect of increasing the allowance for credit losses for both recreation and home improvement loans.

All taxi medallion loans are deemed impaired and have a specific allowance for each loan, such that the underlying net loan has a value no greater than collateral value. The determination of taxi medallion collateral fair value is derived quarterly for each jurisdiction. For taxi medallion loans, delinquent nonperforming loans are valued at collateral value for the most recent quarter. Collateral value for the taxi medallion loans is generally determined utilizing factors deemed relevant under the circumstances of the market including but not limited to: actual transfers, pending transfers, median and average sales prices, discounted cash flows, market direction and sentiment, and general economic trends for the industry and economy. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. We deem a loan impaired when, based on current information and events, it is probable that we will be unable to collect the amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. We charge-off loans in the period that su

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/MFIN/mda/fy2025/
All MD&A years: /company/MFIN/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/MFIN/mda/fy2024/): filed 2025-03-13; accession 0000950170-25-038693 (https://www.sec.gov/Archives/edgar/data/1000209/000095017025038693/mfin-20241231.htm)
- [FY 2023 MD&A](/company/MFIN/mda/fy2023/): filed 2024-03-07; accession 0000950170-24-027942 (https://www.sec.gov/Archives/edgar/data/1000209/000095017024027942/mfin-20231231.htm)
- [FY 2022 MD&A](/company/MFIN/mda/fy2022/): filed 2023-03-10; accession 0000950170-23-007273 (https://www.sec.gov/Archives/edgar/data/1000209/000095017023007273/mfin-20221231.htm)
- [FY 2021 MD&A](/company/MFIN/mda/fy2021/): filed 2022-03-14; accession 0000950170-22-003603 (https://www.sec.gov/Archives/edgar/data/1000209/000095017022003603/mfin-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6199 Finance Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [M2SL](/indicator/M2SL/): M2
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/MFIN.md · JSON record: /company/MFIN.json · verified financials: /company/MFIN/financials.json / /company/MFIN/financials.csv · machine TOC for the whole site: /llms.txt