Medallion Financial Corp. Reports 2025 Third Quarter Results

Rhea-AI Summary

Medallion Financial (NASDAQ: MFIN) reported third quarter 2025 results with net income $7.8M ($0.32/share) including a $3.5M non‑recurring chargeex‑charge net income $11.3M versus $8.6M a year ago. Net interest income rose 6% to $55.7M and net interest margin on net loans was 8.56%. Loan originations increased to $427.4M (includes $208.4M from strategic partnerships). Total loans were $2.559B and total assets were $2.900B. Credit loss provision was $18.6M. The company declared a quarterly dividend of $0.12 per share payable Nov 24, 2025.

Positive

• Ex‑charge net income +31% YoY
• Net interest income +6% to $55.7M
• Loan originations +55% YoY to $427.4M
• Strategic partnership originations $208.4M this quarter
• Net book value per share $17.07, +9% YoY
• Quarterly dividend $0.12 (20% higher YoY)

Negative

• Non‑recurring $3.5M series F preferred redemption charge
• Allowance for recreation loans increased to 5.10%
• Total net taxi medallion assets declined 42% to $5.1M
• Loans held for sale declined to $72.9M from $128.2M

Insights

Credit and Earnings Analyst

Solid quarter: higher core earnings, rising originations, improved margins and expanding strategic-partnership volume.

Net income attributable to stockholders was $7.8 million for the quarter and $11.3 million excluding a $3.5 million non-recurring preferred redemption charge; net interest income rose to $55.7 million and net interest margin improved to 8.21% on gross loans and 8.56% on net loans.

Loan originations increased to $427.4 million, driven by $208.4 million in strategic-partnership originations; total loans reached $2.559 billion, and net book value per share rose to $17.07. Credit provision fell to $18.6 million while allowances increased (recreation allowance 5.10%, home improvement 2.55%), and taxi medallion-related assets declined to $5.1 million with net recoveries/gains of $3.4 million.

Dependencies and risks: results depend on sustained loan origination and credit performance, and allowance levels have risen in recreation lending which bears monitoring; the strategic-partnership channel shows rapid scale but the company holds little of those loans (average holding period five days) so fee generation and retention matter. Concrete items to watch over the next quarter: the declared dividend payable on 11/24/2025 (record date 11/12/2025), whether strategic-partnership fees and hold volumes increase beyond $1.0 million in fees and $15.3 million held, the trend in allowance and 90+ day delinquencies (recreation 90+ days $8.9 million, 0.57%), and quarterly credit loss provision trajectory relative to the current $18.6 million.

10/29/2025 - 04:07 PM

NEW YORK, Oct. 29, 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, today announced its financial results for the three and nine months ended September 30, 2025.

2025 Third Quarter Highlights

• Total net income attributable to stockholders for the 2025 third quarter was $7.8 million, or $0.32 per share, which includes a non-recurring charge of $3.5 million related to the redemption of Medallion Bank's series F preferred stock. Excluding this non-recurring charge, net income for the 2025 third quarter was $11.3 million, as compared to $8.6 million, or $0.37 per share, in the prior year quarter.
• Net interest income grew 6% to $55.7 million from $52.7 million in the prior year quarter.
• Net interest margin ("NIM") on gross loans was 8.21%, compared to 8.11% in the prior year quarter, and NIM on net loans was 8.56%, compared to 8.42% in the prior year quarter.
• Loan originations grew to $427.4 million, compared to $275.6 million in the prior year quarter, and included $208.4 million of strategic partnership loan originations in the current quarter compared to $39.9 million in the prior year quarter.
• The loan portfolio as of September 30, 2025 was $2.559 billion, up 3% from $2.485 billion a year ago.
• Credit loss provision was $18.6 million, compared to $20.2 million in the prior year quarter.
• Net book value per share as of September 30, 2025 was $17.07 per share, up 9% from $15.70 a year ago.
• The Company declared and paid a quarterly cash dividend of $0.12 per share.

Executive Commentary

Andrew Murstein, President and Chief Operating Officer of Medallion Financial, commented, “We are very pleased with our continued strong results. This quarter we reached record highs in net interest income, loan volume and total assets. We had a 31% increase in net income year-over-year when excluding the $3.5 million non-recurring charges related to the redemption of the Bank's series F preferred stock, and continued momentum across our core lending businesses. Net interest margin continued to improve on both gross and net loans. Our diverse business lines delivered meaningful contributions, with higher interest income and disciplined execution supporting strong financial performance. The loan portfolio continued to grow, reaching $2.56 billion, and loan originations reaching $427 million at the end of the quarter.

Our strategic partnership loan program continues to scale, with $208 million in originations this quarter, up significantly from $169 million in the prior quarter and $40 million a year ago, further demonstrating the appeal and growth potential of this platform. We continue to see strong momentum in this channel and intend to continue expanding the program as we move forward. Furthermore, during the quarter, we collected over $6 million from taxi medallion-related assets, which resulted in net recoveries and gains of $3.4 million for the period.

Our nine months earnings have increased 20% year over year. We continue to benefit from strong portfolio diversification, disciplined underwriting, consistently high credit performance, and stable, attractive yields generated by our lending platform. We are strengthening our analytical and data-driven approach to lending, supported by digital tools that enhance various stages of our lending business, from underwriting and origination, to servicing and portfolio management. This integrated platform allows us to evaluate credit risk with greater precision, improving decision-making and maintaining strong credit performance across different micro- and macro-economic cycles. These capabilities, along with our strong leadership team and momentum across business lines, position Medallion for sustainable growth and allow us to continue generating strong returns for our stockholders."

Business Segment Highlights

Recreation Lending Segment

• Originations were $141.7 million during the quarter, compared to $139.1 million a year ago.
• Recreation loans, including loans held for investment and loans held for sale, grew 3% to $1.603 billion, or 63% of total loans, as of September 30, 2025, compared to $1.555 billion a year ago.
• Average loan size was $21,000 with a weighted average FICO score, measured at the time of loan origination, of 685.
• Interest income grew 4% to $53.6 million for the quarter, from $51.4 million in the prior year quarter.
• The average interest rate was 15.17% at quarter-end, or 15.15% excluding loans held for sale, compared to 14.92% a year ago.
• Recreation loans 90 days or more past due were $8.9 million, or 0.57% of gross recreation loans, as of September 30, 2025, compared to $7.5 million, or 0.50%, a year ago.
• Allowance for credit loss was 5.10% at quarter-end for loans held for investment, compared to 4.53% a year ago.
  

Home Improvement Lending Segment

• Originations were $59.7 million during the quarter, compared to $96.5 million a year ago.
• Home improvement loans were $804.0 million, or 31% of total loans, as of September 30, 2025, compared to $814.1 million a year ago.
• Average loan size was $22,000 with a weighted average FICO score, measured at the time of loan origination, of 767.
• Interest income grew 8% to $20.5 million for the quarter, from $19.0 million in the prior year quarter.
• The average interest rate was 9.87% at quarter-end, compared to 9.76% a year ago.
• Home improvement loans 90 days or more past due were $1.3 million, or 0.16% of gross home improvement loans, as of September 30, 2025, compared to $1.6 million, or 0.19%, a year ago.
• Allowance for credit loss was 2.55% at quarter-end, compared to 2.42% a year ago.
  

Commercial Lending Segment

• Originations were $17.5 million during the quarter.
• Commercial loans grew to $135.1 million at September 30, 2025, compared to $110.1 million a year ago.
• Average loan size was $3.8 million, invested in 36 portfolio companies.
• The average interest rate on the portfolio was 13.71%, compared to 12.90% a year ago.

Strategic Partnerships

• Originations were $208.4 million during the quarter, compared to $39.9 million a year ago.
• Total strategic partnership loans held as of quarter-end were $15.3 million, as compared to $3.2 million a year ago.
• Fees generated from strategic partnerships totaled $1.0 million for the quarter, as compared to $0.4 million a year ago.
• The average loan holding period of strategic partnership loans was 5 days.

Taxi Medallion Lending Segment

• The Company collected $6.1 million of cash on taxi medallion-related assets during the quarter, which resulted in net recoveries and gains of $3.4 million.
• Total net taxi medallion-related assets declined to $5.1 million, a 42% reduction from a year ago, and represented less than 0.2% of the Company’s total assets, as of September 30, 2025.

Loan Portfolio

The following table provides information regarding the composition of our loan portfolio for the dates presented:

		September 30, 2025								December 31, 2024
(Dollars in thousands)		Amount				As a Percent of Total Loans				Amount				As a Percent of Total Loans
Loans held for investment:
Recreation		$	1,545,528				60%			$	1,422,403				57%
Home improvement			804,003				31				827,211				33
Commercial			135,123				5				111,273				4
Taxi medallion			1,509			*					1,909			*
Total loans			2,486,163				97				2,362,796				95
Loans held for sale, at lower of amortized cost or fair value:
Recreation			57,641				2				120,840				5
Strategic partnership			15,277			*					7,386			*
Total loans held for sale, at lower of amortized cost or fair value			72,918				3				128,226				5
Total loans and loans held for sale		$	2,559,081				100%			$	2,491,022				100%

(*) Less than 1%.

Balance Sheet

• Cash and cash equivalents, including investment securities, at September 30, 2025 were $212.1 million, compared to $244.7 million at September 30, 2024.
• As of September 30, 2025, total assets amounted to $2.900 billion, up from $2.880 billion at September 30, 2024.
• As of September 30, 2025, total liabilities amounted to $2.404 billion, down from $2.449 billion a year ago.
  

Capital Allocation

Quarterly Dividend

• The Board of Directors declared a quarterly dividend of $0.12 per share, payable on November 24, 2025, to stockholders of record at the close of business on November 12, 2025. This dividend amount remains unchanged from the $0.12 per share paid in the second and third quarters of 2025, and is 20% higher than the same quarter last year.
  
  

Dividends Announced		Amount Per Share				Record Date		Payment Date
Q4 2025			0.12			11/12/2025		11/24/2025
Q3 2025			0.12			8/15/2025		8/29/2025
Q2 2025			0.12			5/15/2025		5/30/2025
Q1 2025			0.11			3/17/2025		3/31/2025
Total: Year 2025			0.47
Total: Year 2024			0.41
Total: Year 2023			0.34
Total: Year 2022 *			0.32

(*) Dividend reinstated in Q1 2022.

Stock Repurchase Plan

• During the nine months ended September 30, 2025, the Company repurchased 108,351 shares of its common stock at an average cost of $9.10 per share for $1.0 million.
• As of September 30, 2025, the Company had $14.4 million remaining under its $40 million stock repurchase program.

Conference Call Information

The Company will host a conference call to discuss its third quarter financial results tomorrow, Thursday, October 30, 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, October 30, 2025
• Time: 9:00 a.m. Eastern time
• Dial-in number: (412) 317-0504
• Live webcast: Link to Webcast of 3Q25 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 conference call replay will be available following the end of the call through Thursday, November 6, 2025

• Dial-in: (412) 317-6671
• Passcode: 1020 3822

Additionally, the webcast replay will be available at the Company’s IR website.

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, expectations regarding our loan portfolio, including collections on our taxi 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, for a description of certain risks to which Medallion is or may be subject, 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
InvestorRelations@medallion.com
212-328-2176

Investor Relations
The Equity Group Inc.
Lena Cati
lcati@theequitygroup.com
(212) 836-9611

Val Ferraro
vferraro@theequitygroup.com
(212) 836-9633

MEDALLION FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS

		(Unaudited)								(Unaudited)
(Dollars in thousands, except share and per share data)		September 30, 2025				December 31, 2024				September 30, 2024
Assets
Cash, cash equivalents, and federal funds sold		$	150,978			$	169,572			$	187,929
Investment securities			61,081				54,805				56,754
Equity investments			9,305				9,198				9,897
Loans held for sale, at lower of amortized cost or fair value			72,918				128,226				—
Loans			2,486,163				2,362,796				2,485,279
Allowance for credit losses			(111,053)				(97,368)				(96,518)
Net loans receivable			2,375,110				2,265,428				2,388,761
Goodwill and intangible assets, net			168,866				169,949				170,311
Property, equipment, and right-of-use lease asset, net			10,839				13,756				14,172
Accrued interest receivable			16,973				15,314				14,108
Loan collateral in process of foreclosure			8,235				9,932				8,818
Other assets			26,082				32,426				29,302
Total assets		$	2,900,387			$	2,868,606			$	2,880,052
Liabilities
Deposits		$	2,055,802			$	2,090,071			$	2,108,132
Long-term debt			215,698				232,159				232,037
Short-term borrowings			80,250				49,000				49,000
Deferred tax liabilities, net			19,019				20,995				20,598
Operating lease liabilities			3,459				5,128				5,534
Accrued interest payable			5,290				8,231				6,888
Accounts payable and accrued expenses			23,992				24,064				26,687
Total liabilities			2,403,510				2,429,648				2,448,876
Total stockholders’ equity			397,448				370,170				362,388
Non-controlling interest in consolidated subsidiaries			99,429				68,788				68,788
Total equity			496,877				438,958				431,176
Total liabilities and equity		$	2,900,387			$	2,868,606			$	2,880,052
Number of shares outstanding			23,279,435				23,135,624				23,084,277
Book value per share		$	17.07			$	16.00			$	15.70

MEDALLION FINANCIAL CORP.‌
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)‌

		Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in thousands, except share and per share data)		2025				2024				2025				2024
Total interest income		$	80,771			$	76,409			$	233,637			$	214,183
Total interest expense			25,085				23,672				73,170				63,661
Net interest income			55,686				52,737				160,467				150,522
Provision for credit losses			18,556				20,151				62,132				55,929
Net interest income after provision for credit losses			37,130				32,586				98,335				94,593
Other income
Gain (loss) on equity investments, net			257				(519)				15,783				3,136
Gain on taxi medallion assets, net			1,767				340				3,359				1,170
Strategic partnership fees			990				400				2,461				1,206
Gain on sale of recreation loans			—				—				1,304				—
Other income			34				366				951				1,577
Total other income, net			3,048				587				23,858				7,089
Other expenses
Salaries and employee benefits			10,145				9,456				30,286				28,347
Loan servicing fees			2,852				2,790				8,568				7,951
Collection costs			1,660				1,673				4,947				4,799
Regulatory fees			680				961				2,610				2,826
Professional fee costs, net			1,073				818				4,010				3,434
Rent expense			680				664				2,036				2,019
Amortization of intangible assets			361				361				1,084				1,084
Other expenses			3,251				2,272				9,465				6,755
Total other expenses			20,702				18,995				63,006				57,215
Income before income taxes			19,476				14,178				59,187				44,467
Income tax provision			5,862				4,055				18,380				14,196
Net income after taxes			13,614				10,123				40,807				30,271
Less: income attributable to the non-controlling interest			2,336				1,512				6,446				4,535
Less: redemption of non-controlling interest			3,515				—				3,515				—
Net income attributable to Medallion Financial Corp. stockholders		$	7,763			$	8,611			$	30,846			$	25,736
Basic net income per share		$	0.34			$	0.38			$	1.36			$	1.14
Diluted net income per share		$	0.32			$	0.37			$	1.28			$	1.09
Weighted average common shares outstanding
Basic			22,854,836				22,490,792				22,737,572				22,576,446
Diluted			24,437,133				23,447,929				24,131,840				23,555,065

FAQ

What did Medallion Financial (MFIN) report for Q3 2025 net income?

Medallion reported $7.8M net income for Q3 2025 ($0.32/share); $11.3M excluding a $3.5M non‑recurring charge.

How much were Medallion's loan originations in Q3 2025 for MFIN?

Total loan originations were $427.4M in Q3 2025, including $208.4M from strategic partnerships.

What is Medallion's dividend and payment date for Q4 2025 (MFIN)?

The Board declared a quarterly dividend of $0.12 per share, payable on November 24, 2025 to holders of record on November 12, 2025.

How large is Medallion's loan portfolio and net interest margin in Q3 2025 (MFIN)?

Total loans and loans held for sale were $2.559B; net interest margin on net loans was 8.56%.

What were Medallion's strategic partnership results in Q3 2025 (MFIN)?

Strategic partnership originations were $208.4M with $1.0M of fees and $15.3M of partnership loans held at quarter‑end.

Did Medallion (MFIN) report any material credit or loan‑loss items in Q3 2025?

Credit loss provision was $18.6M for the quarter and allowance for recreation loans rose to 5.10%.