Earnings

Medallion Originations Accelerate as Assets Cross $3 Billion

The Tip Desk · October 27, 2026 · 4 min read

Loan originations reached $611.6 million in the second quarter, up 63% from a year earlier, as total assets topped $3.0 billion for the first time.

Medallion Financial Corp. (MFIN), a specialty finance company that originates and services consumer and commercial loans, posted loan originations of $611.6 million in the quarter ended June 30, 2026, up 63% from $375.0 million a year earlier. That pace quickened from the first quarter, when originations were $376.9 million, up 34% year over year, and from $421.3 million in the fourth quarter of 2025.

Total assets exceeded $3.0 billion for the first time in company history, reaching $3.194 billion at June 30, 2026, from $2.955 billion at year-end 2025. The loan portfolio, including loans held for sale, was $2.795 billion, up 12.5% from $2.485 billion a year ago, after $2.618 billion at March 31, 2026.

Strategic partnership originations were $247.1 million, compared with $170.0 million in the first quarter. Recreation originations were $228.5 million. Home improvement originations were $128.6 million.

Net interest income rose 7% year over year to $57.2 million from $53.4 million. Net interest margin on gross loans was 7.94%, compared with 8.00% in the first quarter and 8.04% in the fourth quarter of 2025. Net interest margin on net loans was 8.28%.

Recreation loans, including loans held for investment and loans held for sale, grew 14% year over year to $1.760 billion, or 63% of total loans, from $1.546 billion, or 62%, a year earlier. Home improvement loans were $885.6 million, or 32% of total loans, compared with $803.5 million, or 32%, a year earlier. Commercial loans were $126.2 million, or 5% of total loans, compared with $121.4 million a year earlier.

Recreation interest income grew 12% year over year to $57.1 million, with an average interest rate of 15.06% at quarter-end versus 15.12% a year earlier. Home improvement interest income was $20.9 million versus $20.1 million a year earlier; the average rate was 9.69% versus 9.87%. Commercial interest income was $3.5 million versus $3.8 million a year earlier; the average portfolio rate was 14.37% versus 13.43%.

Recreation loans 90 days or more past due were $9.7 million, or 0.57% of gross recreation loans, versus $7.3 million, or 0.49%, a year earlier. The allowance for credit losses on recreation loans was 5.16%, compared with 5.05% a year earlier. Home improvement loans 90 days or more past due were $1.5 million, or 0.17%, versus $1.3 million, or 0.16%, a year earlier; the allowance was 2.42% versus 2.54%.

The credit loss provision was $22.3 million, compared with $21.6 million in the prior year quarter. President and Chief Executive Officer Andrew Murstein said the company recorded higher credit provisions as the loan portfolio expanded, reflecting the up-front reserve requirements associated with new loan originations.

Net income attributable to stockholders was $7.4 million, or $0.31 a share, versus $11.1 million, or $0.46 a share, in the prior year quarter. The quarter included a $0.2 million gain on equity investments, compared with a $6.1 million gain a year earlier. Murstein said the core lending franchise continued to produce operating results supporting earnings despite the absence of significant gains on equity investments.

Taxi medallion-related assets declined to $3.5 million, a 42% reduction from a year ago, after $1.8 million of cash collections and $1.4 million of net recoveries and gains in the quarter. Strategic partnership loans held for sale were $21.4 million as of June 30, 2026, compared with $12.3 million a year earlier. Fees from strategic partnerships were $1.1 million for the quarter.

Net book value per share was $17.62 at June 30, 2026, versus $16.77 a year earlier. The company declared a quarterly cash dividend of $0.14 a share, up from $0.12 in the prior quarter. It repurchased 779,799 shares at an average cost of $9.85 a share for $7.7 million, leaving $6.7 million remaining under its $40 million stock repurchase program. Murstein said the company believes it is well positioned for continued profitable growth through disciplined underwriting, a strong funding base, expanding strategic partnerships, and prudent capital allocation.

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