Medallion Financial Corp. Reports 2025 First Quarter Results

Core Viewpoint - Medallion Financial Corp. reported strong financial results for the first quarter of 2025, highlighting a successful transition away from its legacy taxi medallion lending business and robust performance in consumer and commercial lending sectors [1][3]. Financial Performance - Net income increased by 20% to $12.0 million, or $0.50 per share, compared to $10.0 million, or $0.42 per share, in the same quarter last year [7]. - Net interest income rose by 7% to $51.4 million from $47.9 million in the prior year quarter [7]. - Total interest income grew to $75.4 million, up from $67.1 million in the previous year [23]. - Loan originations reached $281.6 million, compared to $173.1 million in the prior year quarter, with strategic partnership loans accounting for $136.2 million, a significant increase from $15.7 million a year ago [4][7]. Business Segments - The recreation lending segment saw loans grow by 13% to $1.5 billion, representing 62% of total loans, while home improvement loans increased by 8% to $812.4 million, making up 33% of total loans [8]. - The commercial division, Medallion Capital, generated strong equity gains and has contributed $67 million in earnings since its acquisition in 1998 [3]. Dividend and Shareholder Returns - The board of directors declared a quarterly cash dividend of $0.12 per share, an increase from the previous $0.11 per share, payable on May 30, 2025 [5][9]. - The company repurchased 60,185 shares at an average cost of $8.83 per share during the quarter, with $14.9 million remaining under its $40 million stock repurchase program [14]. Credit Quality - Delinquencies in both consumer loan portfolios improved compared to the previous quarter, with the allowance for credit loss at 5.00% for loans held for investment, up from 4.40% a year ago [8][7]. - Credit loss provision increased to $22.0 million from $17.2 million in the prior year quarter [7].