2026 First Quarter Highlights
Total net income attributable to stockholders for the first quarter was $5.0 million, or $0.20 per share, compared to $12.0 million, or $0.50 per share, in the prior year quarter. Total net income for the prior year quarter included a $9.4 million gain on equity investments, compared to $0.3 million in the current quarter.
Net interest income grew 5% to $54.1 million from $51.4 million in the prior year quarter.
Net interest margin ("NIM") on gross loans was 8.00%, compared to 7.94% in the prior year quarter, and NIM on net loans was 8.35%, compared to 8.25% in the prior year quarter.
Loan originations grew 34% to $376.9 million, compared to $281.6 million in the prior year quarter, and included $170.0 million of strategic partnership loan originations in the current quarter, compared to $136.2 million in the prior year quarter.
Credit loss provision was $22.5 million, compared to $22.0 million in the prior year quarter.
The loan portfolio, including loans held for sale, as of March 31, 2026, was $2.618 billion, up 5% from $2.486 billion a year ago.
Net book value per share at March 31, 2026 was $17.10 compared to $16.36 a year ago.
The Company declared and paid a quarterly cash dividend of $0.12 per share.
Subsequent to March 31, 2026, the Board of Directors increased the quarterly cash dividend to $0.14 per share.
Executive Commentary
Andrew Murstein, President and Chief Executive Officer of Medallion Financial Corp., commented, "Following the strong results we achieved in 2025, Medallion continued that momentum in the first quarter 2026, demonstrating our ability to achieve growth across our lending segments. Loan originations grew 64% year-over-year in our recreation segment and 32% year-over-year in our home improvement segment, reflecting healthy demand and the strength of our platform. We saw year-over-year increases in our total portfolio, which expanded to a record $2.618 billion, net interest income, which increased to $54.1 million, and net book value per share, which grew to $17.10.
We continue to see both strong consumer demand for our loan products and improved credit performance. Credit losses in our recreation segment fell to 4.38% in the quarter compared to 4.67% in the 2025 quarter, while credit losses in our home improvement segment extended their multi-quarter decline. We continue to closely monitor the economic environment while remaining disciplined in our underwriting and focused on appropriate risk-adjusted returns.
As we continue to invest in our platform, we are implementing significant technological change and adding talented employees. This effort is designed to help create sustained loan origination growth in the coming periods. Ultimately, our business and lending model is designed to perform across cycles, and organic growth in high-quality assets will create resilience in varying market conditions.
We delivered one of our strongest loan volume quarters on record, reflecting exceptional demand for our products and the success of our origination efforts. We're excited about the underlying business momentum and confident this strong volume positions us well for solid returns ahead."
Business Highlights
Recreation Lending
Originations were $142.5 million during the quarter, compared to $86.8 million a year ago.
Recreation loans, including loans held for investment and loans held for sale, grew 7.5% to $1.672 billion, or 64% of total loans, as of March 31, 2026, compared to $1.546 billion, or 62%, a year ago.
Average loan size as of March 31, 2026 was $22,600 with a weighted average FICO score, measured at the time of loan origination, of 687.
Interest income grew 7% to $54.0 million for the quarter, from $50.5 million in the prior year quarter.
The average interest rate was 15.11% at quarter-end, compared to 15.01% a year ago.
Recreation loans 90 days or more past due were $9.2 million, or 0.57% of gross recreation loans, as of March 31, 2026, compared to $7.1 million, or 0.48%, a year ago.
Allowance for credit losses as of March 31, 2026 was 5.19%, compared to 5.00% a year ago.
Home Improvement Lending
Originations were $64.4 million during the quarter, compared to $48.8 million a year ago.
Home improvement loans were $814.9 million, or 31% of total loans, as of March 31, 2026, compared to $812.4 million, or 33%, a year ago.
Average loan size as of March 31, 2026 was $22,900 with a weighted average FICO score, measured at the time of loan origination, of 781.
Interest income was $19.4 million for the quarter, compared to $19.8 million in the prior year quarter.
The average interest rate was 9.82% at quarter-end, relatively unchanged as compared to 9.83% a year ago.
Home improvement loans 90 days or more past due were $1.4 million, or 0.17% of gross home improvement loans, as of March 31, 2026, compared to $1.5 million, or 0.19%, a year ago.
Allowance for credit losses as of March 31, 2026 was 2.49%, unchanged from a year ago.
Commercial Lending
Commercial loans were $119.6 million as of March 31, 2026, compared to $116.1 million a year ago.
Average loan size was $4.2 million as of March 31, 2026, invested across 28 portfolio companies.
The average interest rate on the portfolio was 14.18% as of March 31, 2026, compared to 13.14% a year ago.
We recognized $0.3 million of net equity gains during the quarter, compared to $9.4 million a year ago.
Strategic Partnerships
Originations were $170.0 million during the quarter, compared to $136.2 million a year ago.
Total strategic partnership loans held as of March 31, 2026 were $10.8 million, compared to $10.5 million a year ago.
Fees generated from strategic partnerships were $0.8 million for the quarter, compared to $0.7 million in the prior year quarter.
The average holding period of strategic partnership loans was approximately five days.
Taxi Medallion Lending
The Company collected $1.7 million of cash on taxi medallion-related assets during the quarter, which resulted in net recoveries and gains of $1.1 million.
Total net taxi medallion-related assets declined to $3.8 million, a 45% reduction from a year ago, and represented less than 0.2% of the Company's total assets, as of March 31, 2026.
Average Balance Sheet
The following table presents our consolidated average balance sheets, interest income and expense, and the average interest earning/bearing assets and liabilities, and which reflects the average yield on assets and average costs on liabilities as of and for the three months ended March 31, 2026 and 2025.
Three Months Ended March 31,
2026
2025
(Dollars in thousands)
AverageBalance
Interest
AverageYield/Cost
AverageBalance
Interest
AverageYield/Cost
Interest-earning assets
Interest earning cash equivalents
$
35,577
$
268
3.06
%
$
37,291
$
352
3.83
%
Federal funds sold
60,605
859
5.75
46,665
817
7.10
Investment securities
62,200
605
3.94
57,960
519
3.63
Loans
Recreation
1,636,409
54,034
13.39
1,542,323
50,466
13.25
Home improvement
812,577
19,376
9.67
820,012
19,771
9.78
Commercial
120,876
3,449
11.57
112,557
3,098
11.16
Taxi medallion
1,171
59
20.43
1,697
80
19.12
Strategic partnerships
10,066
418
16.84
8,050
322
16.22
Total loans
2,581,099
77,336
12.15
2,484,639
73,737
12.04
Total interest-earning assets, before allowance
2,739,481
11.70
2,626,555
11.65
Allowance for credit losses
(115,560
)
(98,261
)
Total interest-earning assets, net of allowance
$
2,623,921
$
79,068
12.21
%
$
2,528,294
$
75,425
12.10
%
Non-interest-earning assets
Cash
59,936
65,941
Equity investments
8,099
9,117
Loan collateral in process of foreclosure
6,972
9,547
Goodwill and intangible assets
168,325
169,770
Other assets
57,196
56,616
Total non-interest-earning assets
300,528
310,991
Total assets
$
2,924,449
$
2,839,285
