v3.25.4
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

(9) SEGMENT REPORTING

The Company has five business segments, which include four lending segments and one non-operating segment, which are reflective of how Company management makes decisions about its business and operations.

The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and taxi medallion lending. The recreation and home improvement lending segments are operated by the Bank and loans are made to borrowers residing nationwide. The recreation lending segment is a consumer finance business that works with third-party dealers and financial service providers to finance RVs, boats, collector cars, and other consumer recreational equipment, of which RVs, boats, and collector cars make up 54%, 21%, and 13% of the segment portfolio, with no other product lines at or above 10%, as of December 31, 2025. The highest concentrations of recreation loans are in Texas and Florida at 17% and 10% of loans outstanding and with no other states at or above 10% as of December 31, 2025. The home improvement lending segment works with contractors and financial service providers to finance residential home improvement with the largest product lines being swimming pools, roofs, and windows at 32%, 28%, and 11% of total home improvement loans outstanding, and with no other product lines at or above 10% as of December 31, 2025. The highest concentrations of home improvement loans are in Florida and Texas at 14% and 12% of loans outstanding and with no other states at or above 10% as of December 31, 2025. The commercial lending segment focuses on serving a wide variety of industries, with concentrations in manufacturing, wholesale trade, and construction making up 63%, 11%, and 10% of the loans outstanding as of December 31, 2025, with no other product lines exceeding 10% as of December 31, 2025. The commercial lending segment invests across the United States with concentrations in California, Wisconsin, and New York having 20%, 12%, and 11% of the segment portfolio, and no other states having a concentration at or greater than 10% as of December 31, 2025. The taxi medallion lending segment arose in connection with the financing of taxi medallions, taxis, and related assets, primarily all of which are located in the New York City metropolitan area as of December 31, 2025.

The Company's corporate and other investments segment is a non-operating segment that includes items not allocated to the Company's operating segments such as investment securities, equity investments, intercompany eliminations, goodwill, and other corporate elements. The Company allocates portions of centrally incurred costs inclusive of overhead and interest expense formulaically based upon overall capital allocated to the lending segments.

As part of segment reporting, capital ratios for all operating segments have been normalized as a percentage of consolidated total equity divided by total assets, with the net adjustment applied to corporate and other investments. In addition, the commercial segment primarily represents the mezzanine lending business, with certain legacy commercial loans (immaterial to total) allocated to corporate and other investments.

The Company's chief operating decision maker (CODM) is a group comprised of the Executive Chairman, Chief Executive Officer, and Chief Financial Officer, and other senior members of management. The CODM primarily uses segment information to identify areas to improve efficiency of resources allocation, determine where to reinvest profits, and minimize unnecessary expenses. The CODM assesses segment performance mainly through selected financial ratios such as returns on average assets and net interest margin, which identifies areas requiring action.

The following table presents segment data as of and for the year ended December 31, 2025.

Year Ended December 31, 2025

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

209,321

 

 

$

80,624

 

 

$

15,904

 

 

$

432

 

 

$

9,039

 

 

$

315,320

 

Total interest expense

 

 

51,966

 

 

 

28,931

 

 

 

4,824

 

 

 

73

 

 

 

12,633

 

 

 

98,427

 

Net interest income (loss)

 

 

157,355

 

 

 

51,693

 

 

 

11,080

 

 

 

359

 

 

 

(3,594

)

 

 

216,893

 

Provision (benefit) for credit losses

 

 

73,908

 

 

 

10,181

 

 

 

9,027

 

 

 

(3,294

)

 

 

—

 

 

 

89,822

 

Net interest income (loss) after loss provision

 

 

83,447

 

 

 

41,512

 

 

 

2,053

 

 

 

3,653

 

 

 

(3,594

)

 

 

127,071

 

Other income

 

 

1,937

 

 

 

12

 

 

 

25,249

 

 

 

4,671

 

 

 

6,124

 

 

 

37,993

 

Operating expenses

 

 

(40,567

)

 

 

(19,246

)

 

 

(6,201

)

 

 

(3,647

)

 

 

(15,518

)

 

 

(85,179

)

Net income (loss) before taxes

 

 

44,817

 

 

 

22,278

 

 

 

21,101

 

 

 

4,677

 

 

 

(12,988

)

 

 

79,885

 

Income tax (provision) benefit

 

 

(13,770

)

 

 

(6,845

)

 

 

(6,497

)

 

 

(1,438

)

 

 

4,006

 

 

 

(24,544

)

Net income (loss) after taxes

 

 

31,047

 

 

 

15,433

 

 

 

14,604

 

 

 

3,239

 

 

 

(8,982

)

 

 

55,341

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,782

 

Less: redemption of Series F preferred stock -
    funds paid in excess of carrying value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,515

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

43,044

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loan, gross (1)

 

$

1,617,221

 

 

$

810,237

 

 

$

123,068

 

 

$

1,179

 

 

$

15,144

 

 

$

2,566,849

 

Total assets

 

 

1,552,257

 

 

 

796,254

 

 

 

115,601

 

 

 

4,329

 

 

 

487,023

 

 

 

2,955,464

 

Total funds borrowed (2)

 

 

1,262,575

 

 

 

647,657

 

 

 

94,028

 

 

 

3,521

 

 

 

396,135

 

 

 

2,403,916

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

2.05

%

 

 

1.94

%

 

 

12.80

%

 

NM

 

 

NM

 

 

 

1.93

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

NM

 

 

NM

 

 

 

11.06

 

Return on average equity

 

 

12.00

 

 

 

11.36

 

 

 

76.06

 

 

NM

 

 

NM

 

 

 

11.43

 

Interest yield

 

 

13.37

 

 

 

9.95

 

 

 

13.00

 

 

NM

 

 

NM

 

 

 

11.74

 

Net interest margin, gross

 

 

10.05

 

 

 

6.38

 

 

 

9.09

 

 

NM

 

 

NM

 

 

 

8.06

 

Net interest margin, net of allowance

 

 

10.56

 

 

 

6.54

 

 

 

9.78

 

 

NM

 

 

NM

 

 

 

8.40

 

Reserve coverage (3)

 

 

5.32

 

 

 

2.41

 

 

 

7.36

 

 

NM

 

 

NM

 

 

 

4.50

 

Delinquency status (4)

 

 

0.82

 

 

 

0.16

 

 

 

8.34

 

 

NM

 

 

NM

 

 

 

0.97

 

Charge-off (recovery) ratio (5)

 

 

3.77

 

 

 

1.38

 

 

 

4.22

 

 

NM

 

 

NM

 

 

 

2.88

 

 

(1) Inclusive of recreation and strategic partnership loans held for sale, at lower of amortized cost or fair value.

(2) Excludes deferred financing costs of $8.4 million as of December 31, 2025.

(3) Allowance for credit loss as a percent of gross loans held for investment and excludes loans held for sale.

(4) Loans 90 days or more past due as a percent of total gross loans.

(5) Net charge-offs as a percent of annual average gross loans. Charge-off ratio in the recreation lending segment was 3.95% when excluding loans held for sale.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

The following table presents segment data as of and for the year ended December 31, 2024.

Year Ended December 31, 2024

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

194,131

 

 

$

74,036

 

 

$

14,007

 

 

$

659

 

 

$

7,869

 

 

$

290,702

 

Total interest expense

 

 

46,123

 

 

 

26,277

 

 

 

4,294

 

 

 

102

 

 

 

11,371

 

 

 

88,167

 

Net interest income (loss)

 

 

148,008

 

 

 

47,759

 

 

 

9,713

 

 

 

557

 

 

 

(3,502

)

 

 

202,535

 

Provision (benefit) for credit losses

 

 

67,995

 

 

 

13,458

 

 

 

1,093

 

 

 

(6,035

)

 

 

(9

)

 

 

76,502

 

Net interest income (loss) after loss provision

 

 

80,013

 

 

 

34,301

 

 

 

8,620

 

 

 

6,592

 

 

 

(3,493

)

 

 

126,033

 

Other income

 

 

756

 

 

 

11

 

 

 

7,860

 

 

 

910

 

 

 

1,793

 

 

 

11,330

 

Operating expenses

 

 

(33,128

)

 

 

(15,586

)

 

 

(4,992

)

 

 

(4,573

)

 

 

(16,148

)

 

 

(74,427

)

Net income (loss) before taxes

 

 

47,641

 

 

 

18,726

 

 

 

11,488

 

 

 

2,929

 

 

 

(17,848

)

 

 

62,936

 

Income tax (provision) benefit

 

 

(15,181

)

 

 

(5,967

)

 

 

(3,661

)

 

 

(933

)

 

 

4,731

 

 

 

(21,011

)

Net income (loss) after taxes

 

 

32,460

 

 

 

12,759

 

 

 

7,827

 

 

 

1,996

 

 

 

(13,117

)

 

 

41,925

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,047

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

35,878

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loan, gross (1)

 

$

1,543,243

 

 

$

827,211

 

 

$

111,273

 

 

$

1,909

 

 

$

7,386

 

 

$

2,491,022

 

Total assets

 

 

1,494,445

 

 

 

811,442

 

 

 

106,258

 

 

 

6,573

 

 

 

449,888

 

 

 

2,868,606

 

Total funds borrowed (2)

 

 

1,239,592

 

 

 

673,064

 

 

 

88,137

 

 

 

5,452

 

 

 

373,168

 

 

 

2,379,413

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

2.29

%

 

 

1.66

%

 

 

7.38

%

 

 

24.25

%

 

 

(2.95

)%

 

 

1.54

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

10.12

 

Return on average equity

 

 

15.11

 

 

 

10.76

 

 

 

47.93

 

 

 

151.76

 

 

 

(18.94

)

 

 

9.89

 

Interest yield

 

 

13.30

 

 

 

9.45

 

 

 

12.71

 

 

 

23.39

 

 

NM

 

 

 

11.58

 

Net interest margin, gross

 

 

10.14

 

 

 

6.09

 

 

 

8.81

 

 

 

16.99

 

 

NM

 

 

 

8.05

 

Net interest margin, net of allowance

 

 

10.58

 

 

 

6.24

 

 

 

9.18

 

 

 

28.15

 

 

NM

 

 

 

8.35

 

Reserve coverage (3)

 

 

5.00

 

 

 

2.48

 

 

 

4.66

 

 

 

28.29

 

 

NM

 

 

 

4.12

 

Delinquency status (4)

 

 

0.67

 

 

 

0.17

 

 

 

14.66

 

 

 

—

 

 

NM

 

 

 

1.13

 

Charge-off (recovery) ratio (5)

 

 

3.72

 

 

 

1.78

 

 

 

0.04

 

 

 

(153.72

)

 

NM

 

 

 

2.69

 

 

(1) Inclusive of recreation and strategic partnership loans held for sale, at lower of amortized cost or fair value.

(2) Excludes deferred financing costs of $8.2 million as of December 31, 2024.

(3) Allowance for credit loss as a percent of gross loans held for investment and excludes loans held for sale.

(4) Loans 90 days or more past due as a percent of total gross loans.

(5) Net charge-offs as a percent of annual average gross loans.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

The following table presents segment data as of and for the year ended December 31, 2023.

Year Ended December 31, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

167,765

 

 

$

62,703

 

 

$

12,719

 

 

$

1,596

 

 

$

6,257

 

 

$

251,040

 

Total interest expense

 

 

31,436

 

 

 

18,137

 

 

 

3,597

 

 

 

72

 

 

 

9,704

 

 

 

62,946

 

Net interest income (loss)

 

 

136,329

 

 

 

44,566

 

 

 

9,122

 

 

 

1,524

 

 

 

(3,447

)

 

 

188,094

 

Provision (benefit) for credit losses

 

 

44,592

 

 

 

17,583

 

 

 

1,988

 

 

 

(26,318

)

 

 

(35

)

 

 

37,810

 

Net interest income (loss) after loss provision

 

 

91,737

 

 

 

26,983

 

 

 

7,134

 

 

 

27,842

 

 

 

(3,412

)

 

 

150,284

 

Other income

 

 

376

 

 

 

6

 

 

 

5,971

 

 

 

3,358

 

 

 

1,609

 

 

 

11,320

 

Operating expenses

 

 

(32,601

)

 

 

(16,752

)

 

 

(3,547

)

 

 

(7,256

)

 

 

(15,412

)

 

 

(75,568

)

Net income (loss) before taxes

 

 

59,512

 

 

 

10,237

 

 

 

9,558

 

 

 

23,944

 

 

 

(17,215

)

 

 

86,036

 

Income tax (provision) benefit

 

 

(17,231

)

 

 

(2,964

)

 

 

(2,767

)

 

 

(6,933

)

 

 

4,985

 

 

 

(24,910

)

Net income (loss) after taxes

 

 

42,281

 

 

 

7,273

 

 

 

6,791

 

 

 

17,011

 

 

 

(12,230

)

 

 

61,126

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,047

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

55,079

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, gross

 

$

1,336,222

 

 

$

760,621

 

 

$

114,827

 

 

$

3,663

 

 

$

553

 

 

$

2,215,886

 

Total assets

 

 

1,297,870

 

 

 

744,904

 

 

 

110,850

 

 

 

12,247

 

 

 

421,956

 

 

 

2,587,827

 

Total funds borrowed (1)

 

 

1,062,584

 

 

 

609,863

 

 

 

90,754

 

 

 

10,027

 

 

 

345,462

 

 

 

2,118,690

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.36

%

 

 

1.04

%

 

 

6.65

%

 

 

91.25

%

 

 

(3.13

)%

 

 

2.51

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

17.33

 

Return on average equity

 

 

21.24

 

 

 

6.60

 

 

 

41.51

 

 

 

574.86

 

 

 

(19.78

)

 

 

15.79

 

Interest yield

 

 

13.07

 

 

 

8.86

 

 

 

12.80

 

 

 

26.94

 

 

NM

 

 

 

11.19

 

Net interest margin, gross

 

 

10.62

 

 

 

6.29

 

 

 

9.18

 

 

 

25.73

 

 

NM

 

 

 

8.38

 

Net interest margin, net of allowance

 

 

11.09

 

 

 

6.45

 

 

 

9.45

 

 

 

61.60

 

 

NM

 

 

 

8.68

 

Reserve coverage (2)

 

 

4.31

 

 

 

2.76

 

 

 

3.61

 

 

 

41.93

 

 

NM

 

 

 

3.80

 

Delinquency status (3)

 

 

0.70

 

 

 

0.20

 

 

 

5.40

 

 

 

—

 

 

NM

 

 

 

0.77

 

Charge-off (recovery) ratio (4)

 

 

3.04

 

 

 

1.33

 

 

 

1.02

 

 

 

(309.96

)

 

NM

 

 

 

1.48

 

 

(1) Excludes deferred financing costs of $8.5 million as of December 31, 2023.

(2) Allowance for credit loss as a percent of gross loans.

(3) Loans 90 days or more past due as a percent of total gross loans.

(4) Net charge-offs as a percent of annual average gross loans.

(NM) Not meaningful.

(*) Line item is not applicable to segments.