Medallion Financial Corp. Reports 2025 Third Quarter Results

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]