Medallion Financial Corp. reported third‑quarter 2025 earnings with net income of $7.8 million and earnings per share of 32 cents. After excluding a $3.5 million non‑recurring charge related to the redemption of Medallion Bank’s series F preferred stock, net income rose 31% year‑over‑year to $11.3 million, compared with $8.6 million in Q3 2024.
The company achieved record highs in key metrics: net interest income reached $52.7 million, the loan portfolio totaled $2.56 billion, and new originations amounted to $427.4 million. Originations through the strategic partnership loan program grew to $208.4 million, up from $39.9 million in Q3 2024. Recoveries from taxi medallion assets totaled $6.1 million, contributing $3.4 million in net recoveries and gains.
Nine‑month earnings for the first nine months of 2025 totaled $23.4 million, a 20% increase from $19.6 million in the same period of 2024. Net interest margin on net loans improved to 8.56%, reflecting higher net interest income and efficient loan growth.
Segment analysis shows recreation loans comprised 63% of total loans ($1.61 billion) and home improvement loans totaled $804 million. Other segments contributed the remaining balance of the portfolio.
Medallion has deployed digital underwriting, origination, servicing, and portfolio‑management tools in partnership with fintech firms. The strategic partnership program now holds loans for an average of five days, creating a fee‑based revenue stream and accelerating loan volume.
The strategic partnership program’s originations increased from $39.9 million in Q3 2024 to $208.4 million in Q3 2025, underscoring its role as a primary growth driver.
Taxi medallion assets now represent less than 0.2% of total assets. Recoveries from these assets continue to generate gains, but the exposure is diminishing as the company winds down the segment.
Credit performance remains strong, with an allowance of 5.10% for recreation loans. Overall loan quality metrics indicate stable credit risk.
Medallion Bank, a subsidiary, reported Q3 2025 net income of $19.8 million and net interest income of $55.9 million. The bank’s strategic partnership originations matched the parent company’s $208 million figure.
The company declared a quarterly dividend of $0.12 per share, payable on November 24 2025.
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