MFIN · Medallion Bank

Medallion Financial Corp. announced its Q1 2026 results, showing resilience in core lending operations despite a decline in net income to $5.0 million or $0.20 per share from $12.0 million or $0.50 per share in Q1 2025, primarily due to a one-time $9.4 million gain on equity investments in the prior period versus $0.3 million this quarter. Net interest income rose 5% to $54.1 million, supported by a 34% increase in loan originations to $376.9 million, including strong growth in recreation lending (64% YoY to $142.5 million) and home improvement (32% YoY to $64.4 million). The total loan portfolio expanded 5% to a record $2.618 billion, with recreation loans comprising 64% at $1.672 billion (up 7.5% YoY) and improved credit metrics, such as recreation credit losses falling to 4.38% from 4.67%. NIM on gross loans improved to 8.00% from 7.94%, reflecting higher yields in recreation (15.11% average rate) and commercial lending (14.18%). CEO Andrew Murstein highlighted sustained momentum from 2025, robust consumer demand, platform investments in technology and talent, and disciplined underwriting for risk-adjusted returns. Credit provision remained stable at $22.5 million. Balance sheet strength is evident with total assets at $2.950 billion (up from $2.848 billion YoY), net book value per share at $17.10 (up from $16.36), and cash equivalents at $206.6 million. The Board raised the quarterly dividend to $0.14 per share from $0.12, signaling confidence, with no share repurchases this quarter but $14.4 million remaining in authorization. Taxi medallion assets continued to shrink to $3.8 million (<0.2% of total assets). Management emphasized cycle-resilient growth in high-quality assets amid economic monitoring.