Medallion Financial Corp. Reports 2025 Third Quarter Results

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
DateQ4 2025 0.12 11/12/2025 11/24/2025Q3 2025 0.12 8/15/2025 8/29/2025Q2 2025 0.12 5/15/2025 5/30/2025Q1 2025 0.11 3/17/2025 3/31/2025Total: 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, 2025Time: 9:00 a.m. Eastern timeDial-in number: (412) 317-0504Live 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) 317-6671Passcode: 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
[email protected]
212-328-2176

Investor Relations
The Equity Group Inc.
Lena Cati
[email protected]
(212) 836-9611

Val Ferraro
[email protected]
(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