Financial Data and Key Metrics Changes - In 2025, Medallion Financial Corp reported record performance with increases in net interest income, net income, originations, and portfolio size compared to 2024 [4] - Net interest income grew 8% to $56.4 million for Q4 and 7% to $216.9 million for the full year [17] - Net income attributable to shareholders was $12.2 million for Q4, an increase of $2.1 million from the prior year, and $43 million for the full year, up $7.2 million [23] Business Line Data and Key Metrics Changes - Consumer lending, the largest business line, reported interest income of $74.5 million for Q4 and $289.9 million for the year, growing 5% and 8% respectively [5] - Home improvement loans stood at $810.2 million, with Q4 originations of $61.7 million, down from $82.5 million a year ago [7] - Commercial lending originations were $4.1 million for Q4, compared to $7.3 million the previous year, but total originations for the year increased to $40.6 million from $14.3 million [8] Market Data and Key Metrics Changes - Total loans reached $2.567 billion, with total originations of $421 million for Q4 and $1.5 billion for the full year, reflecting growth from the previous year [4] - The average interest rate on the total loan portfolio increased to 12.26% from 12.01% a year ago [19] - Delinquencies of ninety-plus days were 0.82% for recreational loans and 0.16% for home improvement loans, indicating strong credit quality [6][7] Company Strategy and Development Direction - The company aims to build on its strong foundation while refining strategic priorities, focusing on growth in the recreation and home improvement segments [13] - A disciplined origination strategy and prudent balance sheet management are prioritized to ensure sustainable growth [12] - The strategic partnership program has seen significant growth, with originations reaching a record level of $258.3 million [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changing environments and deliver consistent returns for shareholders [16] - The focus for 2026 includes targeting sustained growth in core business lines and expanding the home improvement segment [13] - Management acknowledged the potential for market conditions to evolve but emphasized a clear and consistent strategy [16] Other Important Information - The provision for credit loss was $27.7 million for Q4, reflecting an increase from previous quarters due to portfolio growth and adjustments in allowance coverage [20] - The company collected $2.5 million from its legacy Taxi Medallion business during Q4, with net recoveries and gains of $1.4 million [11] - The adjusted tangible book value per share increased to $12.12, up from $10.50 a year ago [24] Q&A Session Summary Question: How would you characterize the provision expense of $27.7 million? - Management explained that the increase was due to moving loans from held for sale to held for investment and adjustments in allowance coverage [26][27] Question: What were the nature of the equity gains recognized? - Management detailed that the $8.8 million in equity gains came from several exits, including gains on warrants and equity investments [32][34] Question: What is the growth outlook for the home improvement segment? - Management indicated a focus on mid-teens growth for home improvement, supported by new talent and improved capital availability [36][38] Question: Should we expect a growth in the reserve ratio in 2026? - Management stated that while the allowance will grow with the loan book, significant changes in the reserve ratio are not expected [46] Question: What were the net charge-offs for Q4? - Management provided details on net charge-offs, indicating $107 for home improvement and $441 for the recreational portfolio [48]

Financial Data and Key Metrics Changes - In 2025, Medallion Financial Corp reported record performance with increases in net interest income, net income, originations, and portfolio size compared to 2024 [4] - Net interest income grew 8% to $56.4 million for Q4 and 7% to $216.9 million for the full year [17] - Total loans reached $2.567 billion, with total originations of $421 million for Q4 and $1.5 billion for the full year, reflecting year-over-year increases [4][19] - Net income attributable to shareholders was $12.2 million for Q4, up $2.1 million from the prior year, and $43 million for the full year, an increase of $7.2 million [23] Business Line Data and Key Metrics Changes - Consumer lending, the largest business line, reported interest income of $74.5 million for Q4 and $289.9 million for the year, growing 5% and 8% respectively [5] - Home improvement loans stood at $810.2 million, with Q4 originations of $61.7 million, down from $82.5 million a year ago [6][7] - The commercial segment saw new originations of $4.1 million in Q4, with total originations for the year at $40.6 million, up from $14.3 million in 2024 [8][9] - The Strategic Partnership Program achieved record originations of $258.3 million in Q4, contributing to diversification of income sources [10][11] Market Data and Key Metrics Changes - Delinquencies of 90+ days were 0.82% for recreational loans and 0.16% for home improvement loans, with allowances for credit losses at 5.32% and 2.41% respectively [6][7] - Average FICO scores for new originations were 688 for recreational loans and 779 for home improvement loans, indicating strong credit quality [8] Company Strategy and Development Direction - The company aims to build on its strong foundation while refining strategic priorities, focusing on growth in recreation and home improvement segments [13][14] - A disciplined origination strategy and prudent balance sheet management are prioritized, with a commitment to capital allocation and risk management [12][16] - The company is exploring adjacent markets for potential growth opportunities while maintaining a long-term perspective on sustainable value creation [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changing environments and deliver consistent returns for shareholders [16] - The transition to a new CEO is seen as a continuation of leadership principles that have guided the company successfully [58] - The company recognizes evolving market conditions but remains committed to disciplined execution and capital allocation [16] Other Important Information - The company paid a quarterly dividend of $0.12 per share and continues to allocate earnings towards growth [12] - The legacy Taxi Medallion business has seen a decline in net assets, now representing less than 0.2% of total assets [11] Q&A Session Summary Question: How would you characterize the provision expense of $27.7 million? - The increase was due to moving REC loans back to held for investment and a step-up in allowance coverage [26][27][29] Question: Can you elaborate on the equity gains of $8.7 million? - The gains were from several exits, including a warrant gain and two equity gains from portfolio companies [32][33] Question: What is the growth outlook for the home improvement segment? - The company added experienced talent and expects mid-teens growth in this segment, which has strong credit quality [36][38] Question: Should we expect a growth in the reserve ratio in 2026? - A significant increase is not expected, but the allowance will grow as the loan book expands [46] Question: What were the net charge-offs for Q4? - Net charge-offs were $107,000 for home improvement and $441,000 for the REC portfolio [48] Question: Is there potential for acquisitions or a sale of the company? - Currently, there are no immediate plans for acquisitions or a sale, but the company is open to opportunities if favorable conditions arise [53][54]

Financial Data and Key Metrics Changes - In Q4 2025, net interest income grew 8% to $56.4 million from $52 million in the same quarter a year ago, and for the full year, it increased 7% to $216.9 million from $202.5 million in 2024 [16][22] - Net income attributable to shareholders was $12.2 million, or $0.50 per diluted share, an increase of $2.1 million or $0.07 per share over the prior year quarter, and for the full year, net income was $43 million, or $1.78 per share, an increase of $7.2 million or $0.26 per share from 2024 [22] - Total loans reached $2.567 billion, with total originations of $421 million for Q4 and $1.5 billion for the full year, reflecting increases from both the same quarter last year and year-over-year [4][18] Business Line Data and Key Metrics Changes - Consumer lending, the largest business line, reported interest income of $74.5 million for Q4 and $289.9 million for the year, growing 5% compared to the same period last year and 8% year-over-year [5] - The recreational loan book grew 5% to $1.6 billion, representing 63% of total loans, with Q4 originations of $97.2 million compared to $72.2 million a year ago [5][18] - The home improvement loan book stood at $810.2 million, representing 32% of total loans, with Q4 originations of $61.7 million versus $82.5 million last year [6] - The commercial segment had new originations of $4.1 million during Q4, compared to $7.3 million the same quarter a year ago, but total originations for the year were $40.6 million, up from $14.3 million in 2024 [7] Market Data and Key Metrics Changes - The average interest rate on the total loan portfolio increased to 12.26% from 12.01% a year ago, with the average interest rate on commercial loans at 14.22% compared to 12.97% a year ago [18] - Delinquencies of ninety-plus days were 0.82% of gross recreational loans and 0.16% of gross home improvement loans, with allowances for credit losses at 5.32% and 2.41% respectively [6][19] Company Strategy and Development Direction - The company aims to build upon its strong foundation while refining strategic priorities, focusing on sustained growth in the recreation and home improvement segments [12] - The strategic partnership program has seen record levels of originations, reaching $258.3 million in Q4, indicating diversification of income sources [9] - The company is committed to disciplined growth, operational excellence, and prudent capital allocation, with a focus on optimizing returns and improving margins [14][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changing environments and deliver consistent, attractive returns for shareholders [14] - The company recognizes the potential for market conditions to evolve but remains focused on sustainable value creation [14] - Management highlighted the importance of maintaining a strong balance sheet to support future investments and growth opportunities [14] Other Important Information - The provision for credit loss was $27.7 million for Q4, reflecting an increase from $18.6 million in Q3 and $20.6 million in the prior year quarter [19] - The company collected $2.5 million in cash from its legacy Taxi Medallion business during Q4, resulting in net recoveries and gains of $1.4 million [10] Q&A Session Summary Question: How would you characterize the provision expense of $27.7 million? - Management explained that the increase was due to moving loans from held for sale to held for investment, which accounted for a $2.2 million provision hit, and an increase in allowance coverage from 5% to 5.32% [26][27] Question: What were the nature of the equity gains of $8.7 million? - Management indicated that the gains were related to several exits, with about $8.5 million coming from three specific portfolio companies [31][32] Question: Should we expect a growth in the reserve ratio in 2026? - Management stated that while the allowance will grow with the loan book, they do not expect significant changes in the reserve ratio [45] Question: What is the growth outlook for the home improvement segment? - Management highlighted that they added experienced talent to support growth in the home improvement line and expect mid-teens growth, significantly above previous levels [36][38]

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]

Core Viewpoint - Long-term dividend growth is more valuable than high initial dividend yields for investors seeking sustainable returns over a decade or more [2][12] Company Overview - Nelnet is primarily known for its role in student loan financing but has diversified its operations significantly since the enactment of the Affordable Care Act, which restricted private companies from financing undergraduate student loans [4][5] - The company is transitioning away from its student loan portfolio while acquiring residual loans, expecting to generate $1 billion in cash flow from these loans, with $100 million anticipated in the latter half of 2025 and annually from 2026 to 2030 [5] Financial Performance - Nelnet Bank, a new lending operation, generated $14 million in net interest income, while the legacy undergraduate student loan portfolio generated $50 million in net interest income last quarter [6] - The educational software and payments processing division generated $486 million in revenue and $117 million in operating income in 2024, providing substantial cash flow for dividend payments [8] Asset Valuation - Nelnet holds a 22% stake in the private start-up Hudl, which could be worth hundreds of millions if it goes public, adding significant value to Nelnet's market cap of $4.7 billion [9] Dividend Growth Strategy - The company has a history of consistent dividend growth, with a 11% annual increase in dividend per share from 2014 to 2024, and plans to continue this trend alongside share repurchases [12]

Core Insights - Medallion Bank reported a net income of $17.3 million for Q2 2025, an increase from $15.0 million in the same quarter last year, highlighting strong earnings growth and significant capital market activities [3][6] - The bank's total loan portfolio grew by 1% year-over-year to $2.3 billion as of June 30, 2025, with strategic partnership volumes increasing by 24% from Q1 2025 [4][6] Financial Performance - Net interest income reached $53.9 million, up from $50.2 million in the prior year quarter, while total non-interest income increased to $2.7 million from $0.9 million [6] - The net interest margin slightly decreased to 8.54% from 8.55% year-over-year [6] - Annualized net charge-offs rose to 2.66% of average loans outstanding compared to 2.31% in the prior year quarter [6] Loan Portfolio Details - The recreation loan portfolio decreased by 0.8% to $1.486 billion, with loan originations at $142.8 million, down from $209.6 million in the prior year quarter [7] - The home improvement loan portfolio grew by 4% to $803.5 million, with loan originations at $54.3 million, compared to $68.0 million in the prior year quarter [12] - Delinquency rates for home improvement loans improved, remaining stable at 0.86%, while recreation loans saw an increase in delinquencies to 4.42% [7][12] Capital Market Activities - The bank completed a $77.5 million Series G preferred stock offering and redeemed $46 million of Series F preferred securities [3][4] - The Series F preferred stock was fully redeemed on July 1, 2025, with no further dividends to be paid [8] Strategic Partnerships - Strategic partnership volumes reached $169 million in Q2 2025, reflecting a 24% increase from $136 million in Q1 2025 [4]