Medallion Financial Corp., a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic partners, announced its financial results for the quarter ended June 30 .
2026 Second Quarter Highlights
- Total net income attributable to stockholders for the second quarter was $7.4 million, or $0.31 per share, compared to $11.1 million, or $0.46 per share, in the prior year quarter. Total net income for the quarter included a $0.2 million gain on equity investments, compared to a $6.1 million gain on equity in the prior year quarter.
- Net interest income grew 7% to $57.2 million from $53.4 million in the prior year quarter.
- Net interest margin (NIM) on gross loans was 7.94%, compared to 8.09% in the prior year quarter, and NIM on net loans was 8.28%, compared to 8.42% in the prior year quarter.
- Total assets exceeded $3.0 billion for the first time in company history.
- Loan originations grew 63% to $611.6 million, compared to $375.0 million in the prior year quarter, and included $247.1 million of strategic partnership loan originations in the current quarter, compared to $168.6 million in the prior year quarter.
- Total loan portfolio as of June 30 was $2.795 billion, up 12.5% compared to $2.485 billion a year ago.
- Credit loss provision was $22.3 million, compared to $21.6 million in the prior year quarter.
- Net book value per share at June 30 was $17.62 compared to $16.77 a year ago.
- The company declared and paid a quarterly cash dividend of $0.14 per share.
- The company repurchased 779,799 shares of its common stock at an average cost of $9.85 per share for $7.7 million.
Executive Commentary
Andrew Murstein, president and chief executive officer of Medallion Financial Corp., commented, “Our second quarter results further demonstrate the strength and scalability of our lending platform. We achieved record assets of more than $3.0 billion, increased loan originations by 63%, grew net interest income by 7% and continued to build book value while maintaining disciplined underwriting standards.
“Demand across our recreation and home improvement lending businesses remains healthy, and our strategic partnership business continues to expand with strategic partnership originations reaching $247 million during the quarter. Additionally, we repurchased nearly 780,000 shares during the quarter at an average price of $9.85 per share, which we believe creates meaningful long-term shareholder value.
“Despite the absence of significant gains on equity investments in the quarter, our core lending franchise continued to produce meaningful operating results supporting our earnings. As our loan portfolio expanded, we recorded higher credit provisions to support that growth, reflecting the up front reserve requirements associated with new loan originations. These originations provide visibility into future portfolio and earnings growth.
“We believe Medallion is well positioned for continued profitable growth through disciplined underwriting, a strong funding base, expanding strategic partnerships, and prudent capital allocation.”
Business Highlights
Recreation Lending
- Originations were $228.5 million during the quarter, up 63.0% compared to $142.8 million a year ago.
- Recreation loans, including loans held for investment and loans held for sale, grew 14% to $1.760 billion, or 63% of total loans, as of June 30, compared to $1.546 billion, or 62%, a year ago.
- Average loan size as of June 30 was $22,300 with a weighted average FICO score, measured at the time of loan origination, of 686.
- Interest income grew 12% to $57.1 million for the quarter, from $51.1 million in the prior year quarter.
- The average interest rate was 15.06% at quarter-end, compared to 15.12% a year ago.
- Recreation loans 90 days or more past due were $9.7 million, or 0.57% of gross recreation loans, as of June 30, compared to $7.3 million, or 0.49%, a year ago.
- Allowance for credit losses as of June 30 was 5.16%, compared to 5.05% a year ago.
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