Medallion Financial Corp. Reports 2025 First Quarter Results

Rhea-AI Summary

Medallion Financial reported strong Q1 2025 results with a 20% increase in net income to $12.0 million ($0.50 per share). The company's strategic shift from taxi medallion lending to consumer and commercial finance continues to yield positive results.

Key highlights include:

• Net interest income up 7% to $51.4 million
• Loan originations reached $281.6 million
• Total loans grew 12% to $2.5 billion
• Strategic partnership loans surged to $136.2 million

The Recreation Lending segment remains dominant with $1.5 billion in loans (62% of total), while Home Improvement lending grew 8% to $812.4 million. The Board increased the quarterly dividend to $0.12 per share. Taxi medallion assets now represent less than 0.5% of total assets, marking a successful business transformation.

Positive

• Net income grew 20% to $12.0 million ($0.50 per share) vs $10.0 million year ago
• Net interest income increased 7% to $51.4 million
• Total loan originations surged to $281.6 million vs $173.1 million year ago
• Strategic partnership loans grew significantly to $136.2 million vs $15.7 million year ago
• Total loan portfolio grew 12% to $2.5 billion
• Board increased quarterly dividend to $0.12 from $0.11 per share
• Recreation loans grew 13% to $1.5 billion
• Home improvement loans increased 8% to $812.4 million
• Successfully reduced taxi medallion exposure to less than 0.5% of total assets

Negative

• Net interest margin declined to 8.25% from 8.39% year ago
• Credit loss provision increased to $22.0 million from $17.2 million
• Recreation lending originations decreased to $86.8 million from $105.8 million year ago
• Home improvement originations dropped to $48.8 million from $51.6 million year ago
• Slight increase in delinquency rates in both recreation and home improvement segments

Insights

Financial Analyst

Strong Q1 with 20% net income growth, increased dividend, and successful pivot from taxi medallion lending to consumer finance.

Medallion Financial's Q1 2025 results showcase impressive performance with $12.0 million in net income (20% YoY growth) or $0.50 per share, substantially outpacing the 7% growth in net interest income. This indicates improving operational efficiency as profit growth exceeds revenue expansion. The loan portfolio grew 12% to $2.5 billion, with particularly strong momentum in strategic partnerships where volume surged from $15.7 million to $136.2 million.

While net interest margin compressed slightly to 8.25% from 8.39%, the increase in volume more than compensates for this modest decline. The board's decision to increase the quarterly dividend to $0.12 per share signals confidence in sustainable cash flow generation. Similarly, the $0.5 million in share repurchases during the quarter demonstrates commitment to shareholder returns.

Credit quality metrics remain stable with Recreation loans 90+ days delinquent at 0.48% (unchanged YoY) and Home Improvement loans at 0.19%. The credit loss provision increased to $22.0 million from $17.2 million, which appears proportionate to portfolio growth. Most notably, the company has successfully completed its transition away from taxi medallion lending, which now represents less than 0.5% of total assets, removing a historical source of volatility.

Consumer Finance Expert

Strategic partnership loan originations surged 768% YoY while maintaining credit quality, fueling Medallion's transformation into a diversified consumer lender.

Medallion Financial's strategic pivot is yielding impressive results, with total originations reaching $281.6 million in Q1, up 63% YoY. The standout story is the explosive growth in strategic partnership loans, which surged to $136.2 million from just $15.7 million a year ago, representing nearly half of all originations. This fintech collaboration strategy creates a powerful new growth vector beyond traditional direct lending.

The Recreation segment remains Medallion's cornerstone at 62% of the portfolio ($1.5 billion), generating substantial yield with its 15.01% average interest rate. Despite this segment's growth, delinquency metrics held steady at 0.48%, indicating disciplined underwriting. Meanwhile, the Home Improvement segment ($812.4 million, 33% of portfolio) provides diversification with its 9.83% yield and superior credit quality (0.19% delinquent).

The increasing allowance for credit losses in both segments (Recreation: 5.00% vs 4.40% YoY; Home Improvement: 2.49% vs 2.38%) demonstrates prudent risk management. The near-complete exit from taxi medallion lending, with remaining exposure down 37% YoY to just $6.8 million, completes Medallion's transformation into a diversified consumer finance company positioned for sustainable growth.

NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) -- 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, announced today its results for the quarter ended March 31, 2025.

March 31, 2025 First Quarter Highlights

• Net income grew 20% to $12.0 million, or $0.50 per share, compared to $10.0 million, or $0.42 per share, in the prior year quarter.
• Net interest income grew 7% to $51.4 million from $47.9 million in the prior year quarter.
• Net interest margin on net loans was 8.25%, compared to 8.39% in the prior year quarter, and on gross loans it was 7.94%, compared to 8.10% in the prior year quarter.
• Loan originations grew to $281.6 million, compared to $173.1 million in the prior year quarter, and included $136.2 million of strategic partnership loans in the current quarter compared to $15.7 million in the prior year quarter.
• Loans grew 12% to $2.5 billion as of March 31, 2025, compared to $2.2 billion a year ago.
• Credit loss provision increased to $22.0 million from $17.2 million in the prior year quarter.
• The Company declared and paid a quarterly cash dividend of $0.11 per share.
• Subsequent to March 31, 2025, the Board of Directors increased the quarterly cash dividend to $0.12 per share.
  
  

Executive Commentary – Andrew Murstein, President of Medallion

"Once again we are pleased with our bottom-line performance and the $0.50 per share earnings this quarter. We have done a great job pivoting fully away from our legacy taxi medallion lending business. Our consumer lending businesses continue to perform well.  Our commercial division, Medallion Capital, which we acquired for approximately 1.1 million MFIN shares back in 1998, had another greater quarter and generated strong equity gains. Since 2015, Medallion Capital has generated $67 million of earnings for our shareholders.

We originated more than $280 million of loans during the quarter, with strategic partnership loans accounting for nearly half. Strategic partnership loan volume increased to $136 million this quarter up from just $16 million one year ago. We saw delinquencies in both of our consumer loan portfolios improve from a quarter ago.

Lastly, we are happy to announce that our board of directors has increased our quarterly dividend to $0.12 per share. We look forward to a bright future for our Company and continuing to deliver positive returns to our shareholders.”

Business Segment Highlights

Recreation Lending Segment

• Originations were $86.8 million during the quarter, compared to $105.8 million a year ago.
• Recreation loans, including loans held for investment and loans held for sale, grew 13% to $1.5 billion, or 62% of total loans, as of March 31, 2025, compared to $1.4 billion a year ago.
• Interest income grew 15% to $50.5 million for the quarter, from $43.9 million in the prior year quarter.
• The average interest rate was 15.01% at quarter-end, 15.10% excluding loans held sale, compared to 14.80% a year ago.
• Recreation loans 90 days or more past due were $7.1 million, or 0.48% of gross recreation loans, as of March 31, 2025, compared to $6.4 million, or 0.48%, a year ago.
• Allowance for credit loss was 5.00% at quarter-end for loans held for investment, compared to 4.40% a year ago.
  
  

Home Improvement Lending Segment

• Originations were $48.8 million during the quarter, compared to $51.6 million a year ago.
• Home improvement loans grew 8% to $812.4 million, or 33% of total loans, as of March 31, 2025, compared to $752.3 million a year ago.
• Interest income grew 13% to $19.8 million for the quarter, from $17.4 million in the prior year quarter.
• The average interest rate was 9.83% at quarter-end, compared to 9.60% a year ago.
• Home improvement loans 90 days or more past due were $1.5 million, or 0.19% of gross home improvement loans, as of March 31, 2025, compared to $1.4 million, or 0.18%, a year ago.
• Allowance for credit loss was 2.49% at quarter-end, compared to 2.38% a year ago.
  
  

Commercial Lending Segment

• Commercial loans were $116.1 million at March 31, 2025, compared to $106.6 million a year ago.
• The average interest rate on the portfolio was 13.14%, compared to 13.00% a year ago.
  
  

Taxi Medallion Lending Segment

• The Company collected $2.6 million of cash on taxi medallion-related assets during the quarter.
• Total net taxi medallion assets declined to $6.8 million, a 37% reduction from a year ago, and represented less than 0.5% of the Company’s total assets, as of March 31, 2025.
  
  

Capital Allocation

Quarterly Dividend

• The Board of Directors declared a quarterly dividend of $0.12 per share, payable on May 30, 2025, to shareholders of record at the close of business on May 15, 2025.
  
  

Stock Repurchase Plan

• During the first quarter of 2025, the Company repurchased 60,185 shares of its common stock at an average cost of $8.83 per share for $0.5 million.
• As of March 31, 2025, the Company had $14.9 million remaining under its $40 million stock repurchase program.
  
  

Conference Call Information

The Company will host a conference call to discuss its first quarter financial results tomorrow, Thursday, May 1, 2025, at 9:00 a.m. Eastern time.

In connection with its earnings release, the Company has updated its quarterly supplement presentation, which is now available at www.medallion.com.

How to Participate

• Date: Thursday, May 1, 2025
• Time: 9:00 a.m. Eastern time
• U.S. dial-in number: (833) 816-1412
• International dial-in number: (412) 317-0504
• Live webcast: Link to Webcast of 1Q25 Earnings Call
  
  

A link to the live audio webcast of the conference call will also be available at the Company’s IR website.

Replay Information

The webcast replay will be available at the Company's IR website until the next quarter’s results are announced.

The conference call replay will be available following the end of the call through Thursday, May 8, 2025

• U.S. dial-in number: (844) 512-2921
• International dial-in number: (412) 317-6671
• Passcode: 1019 8552
  
  

About Medallion Financial Corp.

Medallion Financial Corp. (NASDAQ: MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com.

Forward-Looking Statements
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and our growth strategy. These statements are often, but not always, made using words or phrases such as “will” and “continue” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, the impact of the pending SEC litigation, expectations regarding our loan portfolio, including collections on our medallion loans, the potential for future asset growth, and market share opportunities. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, whether inflation or the risk of recession, the effects of tariffs, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion’s control. In addition to risks relating to the current economy, a description of certain risks to which Medallion is or may be subject, including risks related to the pending SEC litigation, the settlement of which remains subject to SEC and court approval, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2024 Annual Report on Form 10-K.

Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com

MEDALLION FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands, except share and per share data)		March 31, 2025				December 31, 2024				March 31, 2024
Assets
Cash, cash equivalents, and federal funds sold		$	157,994			$	169,572			$	169,125
Investment securities			60,424				54,805				53,038
Equity investments			8,997				9,198				16,374
Loans held for sale, at lower of amortized cost or fair value			124,733				128,226				—
Loans			2,361,700				2,362,796				2,228,426
Allowance for credit losses			(100,366	)			(97,368	)			(83,827	)
Net loans receivable			2,261,334				2,265,428				2,144,599
Goodwill and intangible assets, net			169,588				169,949				171,033
Property, equipment, and right-of-use lease asset, net			12,814				13,756				14,024
Accrued interest receivable			14,437				15,314				12,673
Loan collateral in process of foreclosure			9,183				9,932				10,198
Other assets			28,234				32,426				27,698
Total assets		$	2,847,738			$	2,868,606			$	2,602,388
Liabilities
Deposits		$	2,022,828			$	2,090,071			$	1,879,061
Long-term debt			199,665				232,159				225,558
Short-term borrowings			111,750				49,000				32,500
Deferred tax liabilities, net			21,538				20,995				24,846
Operating lease liabilities			4,528				5,128				6,710
Accrued interest payable			6,610				8,231				6,077
Accounts payable and accrued expenses			31,807				24,064				26,186
Total liabilities			2,398,726				2,429,648				2,200,938
Total stockholders’ equity			380,224				370,170				349,036
Non-controlling interest in consolidated subsidiaries			68,788				68,788				68,788
Total equity			449,012				438,958				417,824
Total liabilities and equity		$	2,847,738			$	2,868,606			$	2,618,762
Number of shares outstanding			23,235,030				23,135,624				23,377,564
Book value per share		$	16.36			$	16.00			$	14.93

MEDALLION FINANCIAL CORP.‌ CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)‌
		Three Months Ended March 31,
(Dollars in thousands, except share and per share data)		2025				2024
Total interest income		$	75,425			$	67,070
Total interest expense			24,013				19,153
Net interest income			51,412				47,917
Provision for credit losses			22,014				17,201
Net interest income after provision for credit losses			29,398				30,716
Other income
Gain on equity investments, net			9,430				4,167
Gain on taxi medallion assets, net			843				629
Strategic partnership fees			685				326
Other income			641				281
Total other income, net			11,599				5,403
Other expenses
Salaries and employee benefits			9,993				9,457
Loan servicing fees			2,817				2,470
Collection costs			1,537				1,467
Regulatory fees			821				977
Professional fee costs, net			1,750				771
Rent expense			675				657
Amortization of intangible assets			361				361
Other expenses			2,804				2,065
Total other expenses			20,758				18,225
Income before income taxes			20,239				17,894
Income tax provision			6,713				6,358
Net income after taxes			13,526				11,536
Less: income attributable to the non-controlling interest			1,512				1,512
Total net income attributable to Medallion Financial Corp.		$	12,014			$	10,024
Basic net income per share		$	0.53			$	0.44
Diluted net income per share		$	0.50			$	0.42
Weighted average common shares outstanding
Basic			22,570,797				22,641,385
Diluted			23,897,167				23,765,045
Dividends declared per common share		$	0.12			$	0.10

FAQ

What is Medallion Financial (MFIN) Q1 2025 earnings per share?

Medallion Financial reported earnings of $0.50 per share in Q1 2025, up 20% from $0.42 per share in Q1 2024. Net income grew to $12.0 million.

How much did MFIN increase its dividend in 2025?

MFIN increased its quarterly dividend from $0.11 to $0.12 per share, payable on May 30, 2025, to shareholders of record as of May 15, 2025.

What is the loan portfolio size of Medallion Financial in Q1 2025?

Medallion Financial's total loan portfolio grew 12% to $2.5 billion as of March 31, 2025, with recreation loans at $1.5 billion (62%) and home improvement loans at $812.4 million (33%).

How much did MFIN spend on stock buybacks in Q1 2025?

MFIN repurchased 60,185 shares at an average cost of $8.83 per share, totaling $0.5 million. The company has $14.9 million remaining under its $40 million stock repurchase program.

What is Medallion Financial's strategic partnership loan volume in Q1 2025?

Strategic partnership loan volume increased significantly to $136.2 million in Q1 2025, compared to $15.7 million in Q1 2024, representing nearly half of total loan originations.

What are MFIN's delinquency rates for Q1 2025?

Recreation loans 90+ days past due were 0.48% ($7.1 million), while home improvement loans 90+ days past due were 0.19% ($1.5 million) as of March 31, 2025.