Core Insights - Medallion Financial (MFIN) has undergone a significant transformation, shifting its focus from lending to taxicab drivers using medallions as collateral to providing loans for home improvements [1] Company Overview - The company originally specialized in financing for taxicab drivers, leveraging their medallions as collateral for loans [1] - The recent pivot towards home improvement loans indicates a strategic shift in the company's business model [1] Investment Focus - The article emphasizes a focus on income investing through various financial instruments, including common shares, preferred shares, and bonds [1]

Core Viewpoint - Medallion Financial Corp. will present at the Piper Sandler Financial Services Conference on November 11, 2025, highlighting its role as a specialty finance company that originates and services loans across various consumer and commercial sectors [1]. Company Overview - Medallion Financial Corp. (NASDAQ: MFIN) specializes in originating and servicing a diverse portfolio of consumer loans and mezzanine loans, with a focus on industries such as recreation and home improvement [3]. - The company operates through fintech strategic partners, enhancing its loan products and services [3]. - Medallion Financial Corp. is headquartered in New York City, with its largest subsidiary, Medallion Bank, located in Salt Lake City, Utah [3]. Investor Engagement - The management team will engage with investors throughout the conference, providing opportunities for direct communication and insights into the company's operations [2]. - Investors can access a PDF copy of the presentation via the company's Investor Relations section on its website [2].

Financial Performance - Net interest income for the three months ended September 30, 2025, was $55.686 million, compared to $52.737 million for the same period in 2024[221]. - The net interest margin, net of allowance, improved to 8.56% for the three months ended September 30, 2025, from 8.42% in 2024[221]. - For the nine months ended September 30, 2025, total loans yielded 12.23%, an increase from 12.02% in the same period of 2024, reflecting a higher yield on loan portfolios[225]. - Net interest income for the nine months ended September 30, 2025, was $160,467 thousand, compared to $150,522 thousand for the same period in 2024[224]. - Total interest income for the three months ended September 30, 2025, was $53,565,000, an increase from $51,443,000 in 2024, representing a growth of 4.1%[265]. - Net income after taxes for the nine months ended September 30, 2025, was $27,299,000, compared to $19,572,000 in 2024, reflecting a year-over-year increase of 39.4%[265]. Loan Portfolio - Consumer loans accounted for 94% of the gross loan portfolio, while commercial loans represented 5%[206]. - The recreation loan portfolio amounted to $1.6 billion, with an average interest rate of 15.17%, reflecting a 25 basis point increase from the previous year[260]. - The gross loans for the Home Recreation segment increased to $1,603,169 thousand as of September 30, 2025, from $1,554,629 thousand a year earlier, reflecting a growth of 3.12%[238]. - Total loans, gross, increased to $1,603,169,000 as of September 30, 2025, up from $1,554,629,000 in 2024, marking a growth of 3.1%[265]. - The average loan size in the recreation loan portfolio was approximately $21,000 as of September 30, 2025[258]. Credit Quality - The allowance for credit losses was $108.719 million as of September 30, 2025, compared to $94.293 million in 2024[221]. - The weighted average FICO score for outstanding recreation loans was 685 as of September 30, 2025, consistent with the score from September 30, 2024, indicating stable credit quality[225]. - The provision for credit losses for the three months ended September 30, 2025, was $18.6 million, a decrease from $20.2 million in the same quarter of 2024, attributed to fewer originations[241]. - The percentage of loans 90 days or more past due increased to 1.2% as of September 30, 2025, up from 1.1% at December 31, 2024[253]. - The allowance for credit losses in the recreation segment increased by 12% from September 30, 2024, due to rising loss rates[260]. Interest Rates and Borrowing Costs - The average interest cost for the nine months ended September 30, 2025, was 4.22%, up 36 basis points from 3.86% in the same period of 2024, primarily due to the higher cost associated with deposits[227]. - The average cost of borrowed funds was 4.28% for the three months ended September 30, 2025, up from 4.05% in 2024, reflecting higher borrowing costs in the current interest rate environment[301]. - The average interest rate for trust preferred securities is 6.52%, with a maturity date of September 2037[336]. - The average interest rate for brokered certificates of deposit is 3.82%, with maturities from October 2025 to September 2030[336]. Strategic Initiatives - The strategic partnership program with fintech companies continues to expand, with the first loans issued in 2020[211]. - The company is considering various alternatives for the Bank, including a potential initial public offering or sale[212]. - The company is exploring various financing options, including asset sales and securitization programs, to support external expansion and internal growth[334]. Asset Management - As of September 30, 2025, total assets were $2.90 billion, an increase from $2.87 billion as of December 31, 2024[206]. - Total interest-earning assets, net of allowance, were $2.573 billion for Q3 2025, up from $2.498 billion in Q3 2024[221]. - Total outstanding debt as of September 30, 2025, was $2.36 billion, with deposits accounting for 87% of this total at a weighted average rate of 3.82%[327]. Operational Efficiency - Operating expenses for Q3 2025 were $1,490,000, compared to $1,235,000 in Q3 2024, reflecting an increase of 20.6%[280]. - The company reported net recoveries and gains of $3,400,000 related to taxi medallion assets during Q3 2025[284]. - The company actively monitors interest rate exposure to mitigate adverse effects on future earnings, utilizing net interest income sensitivity analysis as a primary metric[314].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $7.8 million, or $0.32 per diluted share, which includes a non-recurring charge of $3.5 million related to the redemption of Series F preferred stock, resulting in adjusted earnings of $11.3 million [4][19] - Net interest income increased by 6% to $55.7 million, with a net interest margin of 8.21%, up 10 basis points from the previous year [14][4] - Total loans reached $2.559 billion, reflecting a 3% increase year-over-year [15] Business Line Data and Key Metrics Changes - Consumer lending, the largest segment, generated interest income of $74.1 million, a 5% increase, despite originations decreasing to $201.4 million from $235.6 million a year ago [5][6] - Recreational loans grew 3% to $1.603 billion, representing 63% of total loans, with delinquencies of 90+ days at 0.57% [6] - Home improvement loans decreased to $804 million, with originations of $59.7 million, and delinquencies at 0.16% [6] - Commercial loans reached $135.1 million, with new originations of $17.5 million [9] Market Data and Key Metrics Changes - The strategic partnership program saw record originations of $208.4 million, contributing approximately $1.5 million in fees and interest for the quarter [10][11] - The average interest rate on recreation loans was 15.77%, while home improvement loans averaged 10.9% [14] Company Strategy and Development Direction - The company is focused on disciplined execution and strategic positioning to drive growth across its lending segments [5] - Plans to expand the strategic partnership program by adding new partners in the coming quarters [10][40] - The company aims to maintain a growth strategy that has successfully guided its lending business over the past several years [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and attractive shareholder returns, supported by a diversified portfolio and prudent underwriting standards [12][13] - The company anticipates continued margin expansion and loan growth, particularly in the home improvement segment [43][46] Other Important Information - The company paid a quarterly dividend of $0.12 per share and has $14.4 million remaining under a $40 million share repurchase program [12] - The net book value per share increased to $17.07, up from $16.77 in the previous quarter [19] Q&A Session Summary Question: Was the operating EPS $0.46 a share? - Answer: The operating EPS was $0.32, with the $0.14 impact from the Series F preferred stock redemption bringing it to $0.46 [23][24] Question: Were there any loans sold in the quarter? - Answer: Other than within the strategic partnership program, there are plans to sell recreation loans in the next couple of quarters [25] Question: Does the increase in non-controlling income relate to the Series F preferred stock redemption? - Answer: Yes, the decrease on the balance sheet is due to the redemption of Series F [26] Question: What should be the non-controlling income quarterly going forward? - Answer: It is expected to be $2.33 million [28] Question: Do you have exposure to government employees given the government shutdown? - Answer: No, there is no exposure that would affect the company [31] Question: What is the outlook for strategic originations and fees in 2026? - Answer: The strategic partnership program is expected to continue growing, with plans to add new partners [40] Question: Why were recreation originations flat year over year? - Answer: The company raised credit standards and was cautious due to capital levels [41] Question: How should margins be viewed going forward with recent Fed rate cuts? - Answer: The trend of margin expansion is expected to continue, with a potential drop in the cost of funds [43] Question: What is the outlook for overall loan growth? - Answer: The company is optimistic about loan growth, especially with new talent in home improvement lending [46]

Financial Performance - The company's loan portfolio reached $2,559.1 million as of September 30, 2025, a 3% increase compared to September 30, 2024[15] - Net interest income for the quarter ended September 30, 2025, was $55.7 million[23] - The net interest margin on gross loans was 8.21%, and on net loans, it was 8.56%[14] - Net income for the quarter was $7.8 million, which includes a $3.5 million non-recurring charge related to the redemption of Medallion Bank's series F preferred stock[26, 39] - Year-to-date net interest income through the third quarter of 2025 reached $160.5 million[23] Loan Portfolio Composition - Recreation loans constitute 62.6% of the total loan portfolio, amounting to $1,603.2 million[15, 12] - Home improvement loans represent 31.4% of the portfolio, totaling $804.0 million[15, 12] - Commercial loans account for 5.3% of the portfolio, with a balance of $135.1 million[15, 12] - Strategic partnership and other loans make up 0.7% of the portfolio, totaling $16.8 million[15] Loan Originations and Credit Quality - Total loan originations for the quarter were $141.7 million for recreation loans and $59.7 million for home improvement loans[12] - The average FICO score for recreation loans originated in 2025 was 688, while for home improvement loans, it was 779[11] - The net charge-off (NCO) rate for the total loan portfolio in the third quarter of 2025 was 2.26%[31] Shareholder Value - The company declared a dividend of $0.12 per share per quarter[14, 51] - The company repurchased 108,351 shares at an average cost of $9.10 per share in the first nine months of 2025[14]

Core Insights - Medallion Financial (MFIN) reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.37 per share a year ago, representing an earnings surprise of +58.62% [1] - The company achieved revenues of $58.73 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 8.55% and increasing from $53.32 million year-over-year [2] Earnings Performance - Medallion Financial has consistently surpassed consensus EPS estimates over the last four quarters [2] - The company delivered a surprise of +53.33% in the previous quarter, where it was expected to post earnings of $0.30 per share [1] Stock Performance - Medallion Financial shares have increased approximately 3.5% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $53.24 million, and for the current fiscal year, it is $1.64 on revenues of $232.94 million [7] - The outlook for the Financial - SBIC & Commercial Industry, to which Medallion Financial belongs, is currently in the bottom 11% of Zacks industries, which may impact stock performance [8]

Financial Performance - Total net income attributable to stockholders for Q3 2025 was $7.8 million, or $0.32 per share, excluding a non-recurring charge of $3.5 million, net income was $11.3 million, compared to $8.6 million in the prior year quarter [6]. - Nine months earnings increased 20% year over year, supported by strong portfolio diversification and disciplined underwriting [5]. - Net income after taxes for the three months ended September 30, 2025, was $13,614 thousand, a 34.7% increase from $10,123 thousand in the same period of 2024 [24]. - Basic net income per share for the three months ended September 30, 2025, was $0.34, a decrease from $0.38 in 2024 [24]. - Other income for the three months ended September 30, 2025, totaled $3,048 thousand, significantly higher than $587 thousand in the same period of 2024 [24]. Loan and Interest Metrics - Net interest income grew 6% to $55.7 million from $52.7 million in the prior year quarter, with a net interest margin on gross loans of 8.21% [6]. - Loan originations increased to $427.4 million, compared to $275.6 million in the prior year quarter, including $208.4 million from strategic partnerships, up from $39.9 million a year ago [6][9]. - The average interest rate on recreation loans was 15.17% at quarter-end, compared to 14.92% a year ago [9]. - Net interest income for the three months ended September 30, 2025, was $55,686 thousand, an increase of 5.4% compared to $52,737 thousand for the same period in 2024 [24]. - Total interest income for the nine months ended September 30, 2025, was $233,637 thousand, up from $214,183 thousand in 2024, representing an increase of 9.1% [24]. Asset and Liability Overview - Total assets amounted to $2.900 billion, up from $2.880 billion at September 30, 2024 [13]. - Total assets increased to $2,900,387 thousand as of September 30, 2025, up from $2,868,606 thousand at December 31, 2024, representing a growth of 1.1% [22]. - Total liabilities decreased to $2,403,510 thousand as of September 30, 2025, from $2,429,648 thousand at December 31, 2024, reflecting a reduction of 1.1% [22]. - Total stockholders' equity increased to $397,448 thousand as of September 30, 2025, compared to $370,170 thousand at December 31, 2024, marking a growth of 7.4% [22]. Cash and Dividend Information - Cash and cash equivalents were $212.1 million as of September 30, 2025, down from $244.7 million a year ago [13]. - The company declared a quarterly cash dividend of $0.12 per share, unchanged from previous quarters and 20% higher than the same quarter last year [11]. Credit Quality - Provision for credit losses decreased to $18,556 thousand for the three months ended September 30, 2025, down from $20,151 thousand in 2024, indicating improved credit quality [24]. - Total strategic partnership loans held as of quarter-end were $15.3 million, compared to $3.2 million a year ago [9]. Portfolio Growth - The loan portfolio reached $2.56 billion, a 3% increase from $2.485 billion a year ago [6]. - The number of shares outstanding increased to 23,279,435 as of September 30, 2025, from 23,135,624 at December 31, 2024, indicating a growth in equity participation [22].

Core Insights - Medallion Financial Corp. reported strong financial results for Q3 2025, achieving record highs in net interest income, loan volume, and total assets, with a 31% increase in net income year-over-year when excluding non-recurring charges [3][7][18] Financial Performance - Total net income attributable to stockholders for Q3 2025 was $7.8 million, or $0.32 per share, which includes a non-recurring charge of $3.5 million; excluding this charge, net income was $11.3 million compared to $8.6 million in the prior year [7] - Net interest income grew by 6% to $55.7 million from $52.7 million in the prior year quarter, with a net interest margin (NIM) on gross loans of 8.21% and on net loans of 8.56% [7][12] - Loan originations increased to $427.4 million, up from $275.6 million in the prior year quarter, with strategic partnership loan originations reaching $208.4 million compared to $39.9 million a year ago [7][12] Loan Portfolio and Segments - The loan portfolio reached $2.56 billion, a 3% increase from $2.49 billion a year ago, with recreation loans comprising 63% of total loans [7][8] - The recreation lending segment saw a 3% growth to $1.60 billion, while home improvement loans accounted for 31% of total loans, totaling $804 million [8][12] - The commercial lending segment grew to $135.1 million, with an average loan size of $3.8 million [12] Strategic Partnerships and Growth - The strategic partnership loan program originated $208 million this quarter, significantly up from $169 million in the prior quarter and $40 million a year ago, indicating strong growth potential [4][12] - The company collected over $6 million from taxi medallion-related assets, resulting in net recoveries and gains of $3.4 million for the period [4][12] Balance Sheet and Capital Allocation - Total assets as of September 30, 2025, amounted to $2.90 billion, up from $2.88 billion a year ago, while total liabilities decreased to $2.40 billion from $2.45 billion [18][26] - The company declared a quarterly cash dividend of $0.12 per share, which is 20% higher than the same quarter last year [15][16] Operational Efficiency - The company is enhancing its analytical and data-driven approach to lending, supported by digital tools that improve various stages of the lending process, contributing to strong credit performance [5][12]

Core Insights - Medallion Bank reported a net income of $19.8 million for Q3 2025, an increase from $15.5 million in the same quarter last year, driven by growth in recreation loans and stable performance in home improvement loans [3][6] - The bank's total loan portfolio was $2.3 billion as of September 30, 2025, down from $2.4 billion a year earlier, with recreation loans making up 66% of the total [6][7] - Strategic partnership loan originations reached a record $208 million in the quarter, indicating strong demand for consumer loans [3] Financial Performance - Net interest income increased to $55.9 million from $53.2 million year-over-year, with a net interest margin of 8.64%, up from 8.44% [6] - Total non-interest income rose to $2.3 million compared to $0.6 million in the prior year quarter [6] - The provision for credit losses decreased to $17.2 million from $20.2 million in the prior year quarter, reflecting improved asset quality [6] Loan Segments - The recreation loan portfolio was $1.546 billion as of September 30, 2025, with loan originations of $141.7 million, slightly up from $139.1 million in the prior year quarter [7] - Home improvement loan portfolio size was $804.0 million, down from $814.1 million a year earlier, with loan originations of $59.7 million [5][14] - Delinquencies for recreation loans increased to 4.97% from 4.15% year-over-year, while home improvement loans saw a decrease in delinquencies to 0.92% from 1.02% [7][14] Capital and Dividends - The bank's Tier 1 leverage ratio was 17.5% as of September 30, 2025, indicating strong capital position [6] - A quarterly cash dividend of $0.5625 per share on Series G preferred stock was declared, payable on January 2, 2026 [9]