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]