Earnings Per Share (EPS) of $0.415, slightly above the estimated $0.41.Price-to-Earnings (P/E) ratio of 5.35, indicating a potentially undervalued stock.High earnings yield of approximately 18.71%, attractive to income-seeking investors.Medallion Financial Corp. (NASDAQ: MFIN) is a specialty finance company that focuses on originating and servicing loans across various consumer and commercial sectors. On February 18, 2026, MFIN reported its earnings per share (EPS) of $0.415, slightly surpassing the estimat ...

Core Viewpoint - Medallion Financial Corp. will report its financial results for the quarter and year ended December 31, 2025, after market close on February 18, 2026, with a conference call scheduled for February 19, 2026, at 9:00 a.m. ET [1] Group 1 - The company specializes in originating and servicing loans across various consumer and commercial industries, including fintech partnerships [5] - Key industries served by the company include recreation (such as towable RVs and marine) and home improvement (including replacement roofs, swimming pools, and windows) [5] - Medallion Financial Corp. is headquartered in New York City, with its largest subsidiary, Medallion Bank, located in Salt Lake City, Utah [5] Group 2 - A live audio webcast of the conference call will be available on the company's Investor Relations website [2] - The replay of the conference call will be accessible until February 26, 2026 [3] - The webcast replay will also be available on the company's Investor Relations website [4]

Core Insights - Medallion Bank has appointed Joel Cannon as Senior Vice President of Sales and Marketing, aiming to enhance its leadership in recreation lending and expand its home improvement finance and strategic partnership businesses [1][4]. Group 1: Appointment and Background - Joel Cannon brings over 20 years of leadership experience in consumer lending, performance marketing, and product development, previously serving as SVP of Sales and Marketing at Regions Home Improvement Financing [2]. - Prior to his banking career, Joel held leadership roles in product, sales, and marketing at an edtech software start-up and a performance marketing firm, and he is a former board member of the Utah Bankers Association [3]. Group 2: Company Strategy and Vision - The appointment of Joel Cannon reflects Medallion Bank's commitment to maintaining its leadership position in recreation lending while growing its home improvement finance and strategic partnership businesses [4]. - Joel expressed enthusiasm for leading growth initiatives in home improvement and recreation lending, focusing on providing flexible and innovative financing options to contractors, dealers, partners, and borrowers [5].

Core Viewpoint - ZimCal Asset Management believes that Medallion Financial Corp. is undervalued due to poor leadership and has outlined potential solutions to enhance its value [1][3]. Company Analysis - ZimCal has been invested in Medallion for five years and has engaged with the company's board regarding concerns and suggestions, but has been ignored [2]. - The company has significant potential, particularly through its subsidiary, Medallion Bank, but is hindered by excessive executive compensation and high corporate costs [4]. - Medallion's stock price is currently 40% lower than its peak in November 2013, and its tangible book value is below its 4Q2013 peak [6][7]. Leadership and Governance Issues - CEO Andrew Murstein has faced an SEC lawsuit for securities fraud, with legal fees and penalties paid by shareholders rather than him [5]. - The board of directors has not held Murstein accountable, with three out of eight directors being family members and an average tenure of 18 years [5]. - The company has paid Murstein over $20 million in bonuses despite declining performance, which could be clawed back to increase market capitalization by nearly 10% [5]. Financial Performance - Medallion's consumer charge-offs are at a 14-year high, and loans are barely growing, indicating poor performance in its core business [6][8]. - The commercial lending segment has shown approximately 20% non-performing loans over the last three quarters [8]. - The company's fundamentals are deteriorating, with tangible book value dropping below $30 million and stock price significantly down from its historical highs [7][8]. Strategic Recommendations - ZimCal suggests that under better leadership and a technology-focused approach, Medallion's value could significantly increase [6][9]. - The company has proposed simple solutions that could boost value and investor interest, which have been shared with Medallion privately for nearly two and a half years [9].

Core Insights - Medallion Bank reported a net income of $19.4 million for Q4 2025, an increase from $15.6 million in the same period last year, driven by the sale of taxi medallion assets and growth in recreation loan volume [4][6] - The bank's total loan portfolio reached $2.4 billion as of December 31, 2025, up from $2.2 billion a year earlier, with significant contributions from recreation and home improvement loans [6][11] - Strategic partnership loan originations surged to $258 million in Q4 2025, compared to $123.7 million in Q4 2024, indicating strong growth in this segment [6][11] 2025 Fourth Quarter Highlights - Net interest income for Q4 2025 was $55.9 million, compared to $53.1 million in Q4 2024, reflecting a net interest margin of 8.51% [6][11] - Total non-interest income increased to $11.7 million, primarily due to the sale of taxi medallion assets [6][11] - Charge-offs rose to 3.35% of average loans outstanding, up from 3.28% in the prior year quarter, but were offset by a reduction in home improvement losses [6][11] 2025 Full-Year Highlights - Annual net income for 2025 was $72.2 million, a 19% increase from $60.6 million in 2024 [6][11] - Total provision for credit losses for the year was $81.2 million, compared to $75.8 million in 2024, reflecting growth in the loan portfolio [6][11] - The bank's return on assets and return on equity improved to 2.84% and 17.05%, respectively, compared to 2.52% and 16.62% in 2024 [6][11] Recreation Lending Segment - The recreation loan portfolio grew to $1.617 billion as of December 31, 2025, from $1.422 billion a year earlier, with Q4 loan originations of $97.2 million, up from $72.2 million [5][11] - Delinquency rates for recreation loans decreased to 5.93% as of December 31, 2025, down from 6.15% a year prior [11] - The provision for recreation credit losses was $25.0 million in Q4 2025, compared to $17.7 million in the prior year quarter [11] Home Improvement Lending Segment - The home improvement loan portfolio decreased to $810.2 million as of December 31, 2025, from $827.2 million in 2024, with Q4 loan originations of $61.7 million, down from $82.5 million [11] - Delinquency rates for home improvement loans improved to 1.05% as of December 31, 2025, from 1.11% a year earlier [11] - The provision for home improvement credit losses was $1.3 million in Q4 2025, significantly lower than $4.4 million in the prior year quarter [11] Capital and Dividends - The issuance of Series G preferred stock and redemption of Series F preferred stock increased the bank's capital by a net $27.1 million, raising total capital to $450.2 million as of December 31, 2025 [6][11] - A quarterly cash dividend of $0.5625 per share on Series G preferred stock was declared, payable on April 1, 2026 [8]

Core Viewpoint - Medallion Financial (MFIN) has been consistently growing its asset base and earning returns exceeding its cost of equity, indicating stable growth potential [1]. Group 1: Company Performance - Medallion Financial has shown consistent growth in its asset base over the past few years [1]. - The company is earning an excess return over its cost of equity, which suggests effective management and profitability [1].

Core Insights - Medallion Financial (MFIN) has been consistently growing its asset base over the past few years and is earning an excess return over its cost of equity [1] Group 1 - The company has achieved stable growth while maintaining a strong return on equity [1]

Core Viewpoint - Medallion Financial Corp. will participate in the Sidoti Conference on January 21-22, 2026, providing opportunities for one-on-one meetings with investors [1][2]. Company Overview - Medallion Financial Corp. (NASDAQ: MFIN) is a specialty finance company that originates and services a diverse portfolio of consumer and mezzanine loans across various industries, including recreation and home improvement [3]. - The company offers loan products and services through fintech strategic partners, with key industries served including towable RVs, marine, replacement roofs, swimming pools, and windows [3]. - Medallion Financial Corp. is headquartered in New York City, NY, with its largest subsidiary, Medallion Bank, located in Salt Lake City, Utah [3].

Core Insights - Medallion Bank has announced the promotion of Justin Haley to President and Travis Betenson to SVP and Chief Financial Officer, effective January 12, 2026 [1] Group 1: Leadership Changes - Justin Haley has over 30 years of experience in banking, joining Medallion Bank in 2011 as VP of Home Improvement Lending and progressing through various leadership roles, including SVP and COO [2] - Travis Betenson joined Medallion Bank in January 2024 as VP of Finance and has over 15 years of banking leadership experience, previously serving as CFO for two industrial banks in Utah [3] Group 2: Executive Team Dynamics - CEO Donald Poulton expressed confidence in the leadership capabilities of both Haley and Betenson, highlighting their collaborative efforts and the strong executive core that includes Chief Lending Officer Steve Hannay [4] Group 3: Company Overview - Medallion Bank specializes in consumer loans for recreational vehicles, boats, and home improvements, and provides loan origination services to fintech partners, operating as a Utah-chartered, FDIC-insured industrial bank [5]

Industry Overview - Home improvement stocks are closely tied to housing activity, consumer spending, interest rates, and seasonality, making them sensitive to economic cycles and mortgage market conditions [2] - The five notable companies in this sector include Home Depot, Lowe's Companies, Masco, Medallion Financial, and Jewett-Cameron Trading, which had the highest dollar trading volume recently [2] Company Summaries - **Home Depot (HD)**: Operates as a home improvement retailer, selling building materials, home improvement products, lawn and garden products, and offering installation services for various home improvement projects [3] - **Lowe's Companies (LOW)**: Functions as a home improvement retailer, providing products for construction, maintenance, repair, remodeling, and decorating, including appliances, tools, and building materials [4] - **Masco (MAS)**: Designs, manufactures, and distributes home improvement and building products, with a focus on plumbing products such as faucets, showerheads, and other related items [5] - **Medallion Financial (MFIN)**: A specialty finance company operating in segments including Home Improvement Lending, offering loans for home improvement projects like window and roof replacements [6] - **Jewett-Cameron Trading (JCTC)**: Supplies value-added building materials to major home improvement center chains, focusing on the residential repair and remodeling segment [8]