2026 Third Quarter
Filed Oct 29, 2026Medallion Financial Corp. reported third-quarter net income attributable to Medallion Financial Corp. of $2.4 million, or $0.10 per diluted share, as loan originations grew 41% to $603.9 million and credit-loss provision rose to $30.8 million.
Loan originations, the loan portfolio, and net interest income increased, but higher credit-loss provisioning and lower net interest margin reduced net income attributable to stockholders to $2.4 million from $7.8 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total interest income, three months ended September 30, 2026 (Dollars in thousands)GAAP | $88.89M | – | – |
| Total interest expense, three months ended September 30, 2026 (Dollars in thousands)GAAP | $30.51M | – | – |
| Net interest income, three months ended September 30, 2026 (Dollars in thousands)GAAP | $58.38M | – | 5% |
| Net interest margin, three months ended September 30, 2026GAAP | 7.34% | – | – |
| Provision for credit losses, three months ended September 30, 2026 (Dollars in thousands)GAAP | $30.77M | – | – |
| Net interest income after provision for credit losses, three months ended September 30, 2026 (Dollars in thousands)GAAP | $27.61M | – | – |
| Gain on taxi medallion assets, net, three months ended September 30, 2026 (Dollars in thousands)GAAP | $1.09M | – | – |
| Strategic partnership fees, three months ended September 30, 2026 (Dollars in thousands)GAAP | $762K | – | – |
| Gain on sale of recreation and home improvement loans, three months ended September 30, 2026 (Dollars in thousands)GAAP | $1.68M | – | – |
| Gain (loss) on equity investments, net, three months ended September 30, 2026 (Dollars in thousands)GAAP | −$217K | – | – |
| Other income, three months ended September 30, 2026 (Dollars in thousands)GAAP | $107K | – | – |
| Total other income, net, three months ended September 30, 2026 (Dollars in thousands)GAAP | $3.42M | – | – |
| Salaries and employee benefits, three months ended September 30, 2026 (Dollars in thousands)GAAP | $10.80M | – | – |
| Loan servicing fees, three months ended September 30, 2026 (Dollars in thousands)GAAP | $3.99M | – | – |
| Collection costs, three months ended September 30, 2026 (Dollars in thousands)GAAP | $1.87M | – | – |
| Professional fee costs, net, three months ended September 30, 2026 (Dollars in thousands)GAAP | $1.59M | – | – |
| Regulatory fees, three months ended September 30, 2026 (Dollars in thousands)GAAP | $1.12M | – | – |
| Rent expense, three months ended September 30, 2026 (Dollars in thousands)GAAP | $710K | – | – |
| Depreciation, three months ended September 30, 2026 (Dollars in thousands)GAAP | $661K | – | – |
| Director compensation, three months ended September 30, 2026 (Dollars in thousands)GAAP | $467K | – | – |
| Amortization of intangible assets, three months ended September 30, 2026 (Dollars in thousands)GAAP | $361K | – | – |
| Other expenses, three months ended September 30, 2026 (Dollars in thousands)GAAP | $2.40M | – | – |
| Total other expenses, three months ended September 30, 2026 (Dollars in thousands)GAAP | $23.97M | – | – |
| Income before income taxes, three months ended September 30, 2026 (Dollars in thousands)GAAP | $7.07M | – | – |
| Income tax provision, three months ended September 30, 2026 (Dollars in thousands)GAAP | $2.34M | – | – |
| Net income, three months ended September 30, 2026 (Dollars in thousands)GAAP | $4.73M | – | – |
| Income attributable to the non-controlling interest, three months ended September 30, 2026 (Dollars in thousands)GAAP | $2.33M | – | – |
| Net income attributable to Medallion Financial Corp., three months ended September 30, 2026 (Dollars in thousands)GAAP | $2.40M | – | – |
| Basic net income per share, three months ended September 30, 2026GAAP | $ 0.11 | – | – |
| Diluted net income per share, three months ended September 30, 2026GAAP | $ 0.10 | – | – |
| Weighted average common shares outstanding, basic, three months ended September 30, 2026GAAP | 22,686,300 | – | – |
| Weighted average common shares outstanding, diluted, three months ended September 30, 2026GAAP | 23,647,271 | – | – |
| Net interest income, nine months ended September 30, 2026 (Dollars in thousands)GAAP | $169.7M | – | – |
| Provision for credit losses, nine months ended September 30, 2026 (Dollars in thousands)GAAP | $75.52M | – | – |
| Net income attributable to Medallion Financial Corp., nine months ended September 30, 2026 (Dollars in thousands)GAAP | $14.79M | – | – |
| Diluted net income per share, nine months ended September 30, 2026GAAP | $ 0.61 | – | – |
| Total loans and loans held for sale, September 30, 2026GAAP | $2.94B | – | 15% |
| Total assets, September 30, 2026GAAP | $3.36B | – | – |
| Total liabilities, September 30, 2026GAAP | $2.81B | – | – |
| Total stockholders’ equity, September 30, 2026GAAP | $399.8M | – | – |
| Book value per share, September 30, 2026GAAP | $ 17.73 | – | – |
| Cash, cash equivalents, and federal funds sold, September 30, 2026GAAP | $243.1M | – | – |
| Investment securities, September 30, 2026GAAP | $63.85M | – | – |
| Deposits, September 30, 2026GAAP | $2.39B | – | – |
| Long-term debt, September 30, 2026GAAP | $287.8M | – | – |
| Short-term borrowings, September 30, 2026GAAP | $ 77,000 | – | – |
| Allowance for credit losses, September 30, 2026GAAP | −$133.9M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Recreation LendingOriginations were $198.2 million during the quarter, up 40% compared to $141.7 million a year ago. Recreation loans grew 16% to $1.853 billion. | Interest income grew 14% to $61.0 million for the quarter, from $53.6 million in the prior year quarter. | – | 14% |
| Home Improvement LendingOriginations were $146.3 million during the quarter, up 145% compared to $59.7 million a year ago. Home improvement loans grew 18% to $947.5 million. | Interest income grew 5% to $21.4 million for the quarter, compared to $20.5 million in the prior year quarter. | – | 5% |
| Commercial LendingCommercial loans were $118.7 million as of September 30, 2026, compared to $135.1 million a year ago. | Interest income was $3.2 million for the quarter, compared to $4.2 million in the prior year quarter. | – | – |
| Strategic PartnershipsOriginations were $259.4 million during the quarter, up 25% compared to $208.4 million a year ago. rFinance Credit Company was added as the sixth partner in September 2026. | Fees generated from strategic partnerships were $0.8 million for the quarter, compared to $1.0 million in the prior year quarter. | – | – |
| Taxi Medallion LendingTotal net taxi medallion-related assets declined to $3.0 million, a 42% reduction from a year ago. | 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. | – | – |
Capital returns
- The Company declared and paid a quarterly cash dividend of $0.14 per share.
- The Board of Directors declared a quarterly dividend of $0.14 per share, payable on November 19, 2026, to stockholders of record at the close of business on November 9, 2026.
- During the quarter ended September 30, 2026, the Company repurchased 483,871 shares of its common stock at an average cost of $11.48 per share for $5.6 million.
- As of September 30, 2026, the Company had $1.2 million remaining under its $40 million stock repurchase program, all of which was utilized subsequent to quarter end.
- On October 27, 2026, the Board of Directors approved a new stock repurchase plan in the amount of $40 million.
What drove it
- Loan originations grew 41% to $603.9 million, compared to $427.4 million in the prior year quarter.
- Strategic partnership loan originations were $259.4 million, compared to $208.4 million in the prior year quarter.
- Recreation and home improvement loans increased 5% and 7%, respectively, from last quarter, according to the Chief Executive Officer.
- The current-quarter credit-loss provision included approximately $5.6 million related to allowance for credit losses tied to consumer loan growth, compared to $1.9 million in the prior year quarter.
- Total loan portfolio as of September 30, 2026 was $2.936 billion, up 15% compared to $2.559 billion a year ago.
Concerns
- Net income attributable to Medallion Financial Corp. was $2.4 million, or $0.10 per share, compared to $7.8 million, or $0.32 per share, in the prior year quarter.
- Net interest margin was 7.34% compared to 8.21% in the prior year quarter.
- Credit loss provision was $30.8 million, compared to $18.6 million in the prior year quarter.
- Recreation loans 90 days or more past due were $11.9 million, or 0.66% of gross recreation loans, compared to $8.9 million, or 0.57%, a year ago.
- Home improvement loans 90 days or more past due were $1.7 million, or 0.18% of gross home improvement loans, compared to $1.3 million, or 0.16%, a year ago.
- Strategic partnership fees were $0.8 million for the quarter, compared to $1.0 million in the prior year quarter.
What to watch
- Deployment of the additional $55 million of preferred stock in the consumer lending business in coming quarters.
- The fourth-quarter gain on extinguishment of debt expected from the October repurchase of $15 million of trust preferred securities.
- Credit-loss provisioning associated with continued consumer loan growth.
- Net interest margin following the decline to 7.34% from 8.21% in the prior year quarter.
- Repurchases under the new $40 million stock repurchase program.
Balance sheet and cash flow
- Cash and cash equivalents, including investment securities, as of September 30, 2026, were $306.9 million, compared to $212.1 million as of September 30, 2025.
- As of September 30, 2026, total assets were $3.361 billion, up from $2.900 billion as of September 30, 2025.
- As of September 30, 2026, total liabilities were $2.810 billion, up from $2.404 billion as of September 30, 2025.
- The Company successfully raised an additional $55 million of preferred stock at Medallion Bank through the reopening of its Series G Preferred Stock.
- The Company repurchased $15 million of its trust preferred securities in October at a meaningful discount, which it stated will result in a gain on the extinguishment of that debt in the upcoming fourth quarter.
Analysis
Medallion reported a mixed third quarter. Net interest income grew 5% to $58.4 million from $55.7 million, supported by a 41% increase in loan originations to $603.9 million and a 15% increase in the total loan portfolio to $2.936 billion. However, net interest margin declined to 7.34% from 8.21%, while total interest expense was $30.511 million compared with $25.085 million in the prior-year quarter.
Credit provisioning was the principal earnings headwind. Provision for credit losses increased to $30.8 million from $18.6 million, including approximately $5.6 million tied to allowance for credit losses associated with consumer loan growth, compared with $1.9 million in the prior-year quarter. As a result, net interest income after provision for credit losses was $27.610 million versus $37.130 million. Net income attributable to Medallion Financial Corp. declined to $2.397 million from $7.763 million, and diluted net income per share was $0.10 compared with $0.32.
Consumer lending expansion was concentrated in recreation and home improvement. Recreation originations were $198.2 million, up 40%, and home improvement originations were $146.3 million, up 145%. Recreation loans grew 16% to $1.853 billion and home improvement loans grew 18% to $947.5 million. Commercial loans declined to $118.7 million from $135.1 million. Credit indicators warrant attention: recreation loans 90 days or more past due were 0.66% of gross recreation loans versus 0.57%, while home improvement loans 90 days or more past due were 0.18% versus 0.16%.
The balance sheet expanded alongside lending. Total assets were $3.361 billion, total liabilities were $2.810 billion, and cash and cash equivalents including investment securities were $306.9 million. The company raised an additional $55 million of preferred stock at Medallion Bank, repurchased 483,871 common shares for $5.6 million during the quarter, completed the prior $40 million authorization subsequent to quarter end, and received a new $40 million authorization on October 27, 2026. It also stated that the October repurchase of $15 million of trust preferred securities will produce a fourth-quarter gain on extinguishment of debt.
No quantitative earnings outlook was provided. The disclosed forward items are the intended deployment of the additional preferred capital in consumer lending, repurchases under the new $40 million authorization, and the expected fourth-quarter gain on extinguishment of debt. The key reported trade-off is rapid loan growth against lower reported quarterly earnings caused by larger upfront provisions and lower net interest margin.
Management, verbatim
While these provisions result in an immediate impact on reported earnings, they reflect the expansion of our loan portfolio and position us to generate increased earnings and shareholder value over time.
Andrew Murstein, President and Chief Executive Officer of Medallion Financial Corp.
We expect this additional capital to be accretive to our shareholders as we deploy it in our consumer lending business in the coming quarters.
Andrew Murstein, President and Chief Executive Officer of Medallion Financial Corp.
Lastly, we were able to repurchase $15 million of our trust preferred securities in October at a meaningful discount, which will result in a gain on the extinguishment of that debt in the upcoming fourth quarter.
Andrew Murstein, President and Chief Executive Officer of Medallion Financial Corp.
Not in the filing
stated, not guessed- Total revenue was not reported.
- Gross margin was not reported.
- Operating income was not reported.
- Non-GAAP financial measures, including non-GAAP EPS, were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Quantitative forward guidance was not provided.
- Previous-period outlook was not provided.
- A prior-quarter comparison for the reported income-statement metrics was not provided.
- A total company tax rate was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.