Medallion Financial Corp.

Net interest income rose 7% year over year to a quarterly record $57.2 million from $53.4 million. Net interest margin was 7.94%, down 15 basis points year over year and down 60 basis points sequentially. Net income attributable to shareholders was $7.4 million, or $0.31 per diluted share, versus $11.1 million, or $0.46 per diluted share a year ago. Tangible book value per share was $12.17, up from $11.32 a year ago, while net book value per share was $17.62 versus $17.66 a year ago. For guidance, management said loan origination trends look sustainable, expects Q2 and Q3 to remain the stronger origination seasons, still targets mid-teens loan growth for the full year, and said the business is investing in talent and systems ahead of a loan origination system replacement expected in Q1 2027.

Andrew Murstein framed the quarter as evidence of a stronger, scalable lending platform, emphasizing record originations, stable credit quality, and continued momentum through July. He said the company is being methodical about growth in its strategic partnership program, but expects that program to scale over time. His tone was upbeat and confident, especially around the company’s ability to grow assets, book value, and shareholder returns at the same time.

Anthony Cutrone focused on the financial mechanics of growth: net interest income rose to $57.2 million, net interest margin was 7.94%, and the quarter included $22.3 million of provision for credit losses, including about $6.5 million of Day 1 provisioning tied to originations. He said operating costs were $25 million, up from $21.5 million a year ago, due to employee, servicing, and proxy-related costs, but reiterated that net interest income should grow faster than operating costs over time. He also noted the company’s capital actions: a $0.14 dividend, nearly 780,000 shares repurchased, and a buyback plan with about $6 million remaining.

Analysts focused on whether the very strong originations were sustainable, what was driving growth in home improvement and recreation, and how management views credit trends into the second half of 2026. Management said the volumes are sustainable, pointed to seasonality with Q2 and Q3 strongest, and explained that growth came from more competitive pricing, better partner execution, new hires, and expanded contractor acquisition. They also said rec credit is still elevated but not worsening, the pricing changes should improve charge-off-adjusted NIM over time, and the company sold about $50 million of recreation loans to manage capital while still growing the portfolio.