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]