Medallion Financial Reports $12M Net Income and Increased Interest Income for Q1 2025

Medallion Financial Corp. reported a net income of $12.0 million, or $0.50 per diluted share, for the three months ended March 31, 2025, marking an increase from $10.0 million, or $0.42 per diluted share, in the same period last year. Total interest income rose to $75.4 million, up from $67.1 million, driven by growth in the company's recreation and home improvement lending segments and higher interest rates on new loans. The yield on interest-earning assets increased to 11.65% from 11.34% year-over-year, reflecting the company's strategy to adjust rates in response to market conditions.

The company's total assets decreased slightly to $2.85 billion as of March 31, 2025, down from $2.87 billion at the end of 2024. Loans, including those held for investment and sale, totaled $2.4 billion, with the recreation segment accounting for $1.5 billion and home improvement loans at $812.4 million. The allowance for credit losses increased to $100.4 million, representing 4.25% of total loans held for investment, compared to 4.12% at the end of 2024. The provision for credit losses for the quarter was $22.0 million, up from $17.2 million in the prior year, reflecting rising loss rates and economic uncertainties.

Operationally, Medallion Financial continues to focus on its consumer finance and commercial lending businesses through its subsidiaries, including Medallion Bank and Medallion Capital. The company has maintained a strategic partnership program with fintech companies, which has contributed to its loan origination efforts. During the first quarter of 2025, the company originated $281.7 million in loans, including $136.2 million from its strategic partnership program, although overall originations were lower compared to the previous year due to restrictive underwriting standards and economic conditions.

In terms of strategic developments, Medallion Financial has been actively managing its capital structure, including a recent increase in its quarterly dividend to $0.12 per share, effective May 30, 2025. The company also repurchased 60,185 shares of its common stock during the quarter, with approximately $14.9 million remaining under its stock repurchase program. Looking ahead, the company anticipates continued pressure on net interest margins due to rising borrowing costs, while also focusing on maintaining credit quality in its loan portfolio amid a challenging economic environment.