v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
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, collector cars, and trailers make up 54%, 21%, 13%, and 11% of the segment portfolio, with no other product lines at or above 10%, as of March 31, 2026. The highest concentrations of recreation loans are in Texas and Florida at 17% and 10% of loans outstanding with no other states at or above 10%, as of March 31, 2026. 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 35%, 27%, and 11% of total home improvement loans outstanding, and with no other product lines at or above 10% as of March 31, 2026. The highest concentrations of home improvement loans are in Florida and Texas at 14% and 13% of loans outstanding, with no other states at or above 10%, as of March 31, 2026. The commercial lending segment focuses on serving a wide variety of industries, with concentrations in manufacturing, wholesale trade, and construction making up 62%, 11%, and 10%, of the loans outstanding, with no other product lines at or above 10% as of March 31, 2026. The commercial lending segment invests across the United States with concentrations in California, Wisconsin, and New York having 21%, 12%, and 11% of the segment portfolio, with no other states having a concentration at or above 10%, as of March 31, 2026. 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 March 31, 2026.

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, or 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 three months ended March 31, 2026.

Three Months Ended March 31, 2026

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and
Other Investments

 

 

Consolidated

 

Total interest income

 

$

54,034

 

 

$

19,376

 

 

$

3,449

 

 

$

59

 

 

$

2,150

 

 

$

79,068

 

Total interest expense

 

 

14,292

 

 

 

7,370

 

 

 

1,392

 

 

 

30

 

 

 

1,925

 

 

 

25,009

 

Net interest income

 

 

39,742

 

 

 

12,006

 

 

 

2,057

 

 

 

29

 

 

 

225

 

 

 

54,059

 

Provision (benefit) for credit losses

 

 

18,445

 

 

 

3,618

 

 

 

459

 

 

 

(46

)

 

 

—

 

 

 

22,476

 

Net interest income after credit loss provision

 

 

21,297

 

 

 

8,388

 

 

 

1,598

 

 

 

75

 

 

 

225

 

 

 

31,583

 

Other income, net

 

 

26

 

 

 

7

 

 

 

448

 

 

 

1,117

 

 

 

810

 

 

 

2,408

 

Other expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries

 

 

4,105

 

 

 

2,352

 

 

 

739

 

 

 

701

 

 

 

3,103

 

 

 

11,000

 

Loan servicing fees, credit, and collection costs

 

 

4,290

 

 

 

1,141

 

 

 

—

 

 

 

28

 

 

 

15

 

 

 

5,474

 

Other costs

 

 

2,683

 

 

 

1,378

 

 

 

543

 

 

 

34

 

 

 

1,262

 

 

 

5,900

 

Total other expenses

 

 

11,078

 

 

 

4,871

 

 

 

1,282

 

 

 

763

 

 

 

4,380

 

 

 

22,374

 

Net income (loss) before taxes

 

 

10,245

 

 

 

3,524

 

 

 

764

 

 

 

429

 

 

 

(3,345

)

 

 

11,617

 

Income tax (provision) benefit

 

 

(3,817

)

 

 

(1,313

)

 

 

(310

)

 

 

(160

)

 

 

1,272

 

 

 

(4,328

)

Net income (loss) after taxes

 

$

6,428

 

 

$

2,211

 

 

$

454

 

 

$

269

 

 

$

(2,073

)

 

$

7,289

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,336

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,953

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, gross (1)

 

$

1,671,538

 

 

$

814,933

 

 

$

119,612

 

 

$

1,126

 

 

$

10,786

 

 

$

2,617,995

 

Total assets

 

 

1,606,691

 

 

 

802,126

 

 

 

111,561

 

 

 

3,836

 

 

 

426,272

 

 

 

2,950,486

 

Total funds borrowed (2)

 

 

1,304,451

 

 

 

651,235

 

 

 

90,575

 

 

 

3,114

 

 

 

346,085

 

 

 

2,395,460

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.65

%

 

 

1.12

%

 

 

1.60

%

 

NM

 

 

NM

 

 

 

1.01

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

4.91

 

Return on average equity

 

 

9.60

 

 

 

6.52

 

 

 

9.32

 

 

NM

 

 

NM

 

 

 

5.80

 

Interest yield

 

 

13.39

 

 

 

9.67

 

 

 

11.57

 

 

NM

 

 

NM

 

 

 

11.70

 

Net interest margin, gross

 

 

9.85

 

 

 

5.99

 

 

 

6.90

 

 

NM

 

 

NM

 

 

 

8.00

 

Net interest margin, net of allowance

 

 

10.40

 

 

 

6.14

 

 

 

7.47

 

 

NM

 

 

NM

 

 

 

8.35

 

Reserve coverage (3)

 

 

5.19

 

 

 

2.49

 

 

 

7.96

 

 

NM

 

 

NM

 

 

 

4.48

 

Delinquency status (4)

 

 

0.57

 

 

 

0.17

 

 

 

8.58

 

 

NM

 

 

NM

 

 

 

0.81

 

Charge-off ratio (5)

 

 

4.38

 

 

 

1.44

 

 

NM

 

 

NM

 

 

NM

 

 

 

3.23

 

 

(1)
Inclusive of 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 March 31, 2026.
(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 loans.
(5)
Net charge-offs as a percent of average gross loss.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

 

The following table presents segment data as of and for the three months ended March 31, 2025.

Three Months Ended March 31, 2025

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and
Other Investments

 

 

Consolidated

 

Total interest income

 

$

50,466

 

 

$

19,771

 

 

$

3,343

 

 

$

80

 

 

$

1,765

 

 

$

75,425

 

Total interest expense

 

 

12,041

 

 

 

6,964

 

 

 

1,053

 

 

 

12

 

 

 

3,943

 

 

 

24,013

 

Net interest income (expense)

 

 

38,425

 

 

 

12,807

 

 

 

2,290

 

 

 

68

 

 

 

(2,178

)

 

 

51,412

 

Provision (benefit) for credit losses

 

 

16,870

 

 

 

2,845

 

 

 

3,114

 

 

 

(815

)

 

 

—

 

 

 

22,014

 

Net interest income (loss) after credit loss provision

 

 

21,555

 

 

 

9,962

 

 

 

(824

)

 

 

883

 

 

 

(2,178

)

 

 

29,398

 

Other income, net

 

 

400

 

 

 

2

 

 

 

9,642

 

 

 

844

 

 

 

711

 

 

 

11,599

 

Other expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries

 

 

3,642

 

 

 

2,377

 

 

 

1,142

 

 

 

650

 

 

 

2,182

 

 

 

9,993

 

Loan servicing fees, credit, and collection costs

 

 

3,182

 

 

 

777

 

 

 

—

 

 

 

149

 

 

 

448

 

 

 

4,556

 

Other costs

 

 

3,140

 

 

 

1,830

 

 

 

331

 

 

 

184

 

 

 

724

 

 

 

6,209

 

Total other expenses

 

 

9,964

 

 

 

4,984

 

 

 

1,473

 

 

 

983

 

 

 

3,354

 

 

 

20,758

 

Net income (loss) before taxes

 

 

11,991

 

 

 

4,980

 

 

 

7,345

 

 

 

744

 

 

 

(4,821

)

 

 

20,239

 

Income tax (provision) benefit

 

 

(3,977

)

 

 

(1,652

)

 

 

(2,436

)

 

 

(247

)

 

 

1,599

 

 

 

(6,713

)

Net income (loss) after taxes

 

$

8,014

 

 

$

3,328

 

 

$

4,909

 

 

$

497

 

 

$

(3,222

)

 

$

13,526

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

12,014

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, gross

 

$

1,545,844

 

 

$

812,381

 

 

$

116,059

 

 

$

1,650

 

 

$

10,499

 

 

$

2,486,433

 

Total assets

 

 

1,495,150

 

 

 

795,868

 

 

 

109,565

 

 

 

6,855

 

 

 

440,300

 

 

 

2,847,738

 

Total funds borrowed (2)

 

 

1,229,818

 

 

 

654,632

 

 

 

90,121

 

 

 

5,638

 

 

 

362,164

 

 

 

2,342,373

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

2.17

%

 

 

1.68

%

 

 

18.45

%

 

NM

 

 

NM

 

 

 

1.93

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

12.96

 

Return on average equity

 

 

13.37

 

 

 

10.33

 

 

 

113.46

 

 

NM

 

 

NM

 

 

 

12.32

 

Interest yield

 

 

13.25

 

 

 

9.78

 

 

 

11.16

 

 

NM

 

 

NM

 

 

 

11.65

 

Net interest margin, gross

 

 

10.10

 

 

 

6.33

 

 

 

8.25

 

 

NM

 

 

NM

 

 

 

7.94

 

Net interest margin, net of allowance

 

 

10.59

 

 

 

6.50

 

 

 

8.71

 

 

NM

 

 

NM

 

 

 

8.25

 

Reserve coverage (3)

 

 

5.00

 

 

 

2.49

 

 

 

7.04

 

 

NM

 

 

NM

 

 

 

4.25

 

Delinquency status (4)

 

 

0.48

 

 

 

0.19

 

 

 

17.63

 

 

NM

 

 

NM

 

 

 

1.20

 

Charge-off ratio (5)

 

 

4.32

 

 

 

1.55

 

 

 

0.47

 

 

NM

 

 

NM

 

 

 

3.10

 
(1)
Inclusive of strategic partnership loans held for sale, at lower of amortized cost or fair value.
(2)
Excludes deferred financing costs of $8.1 million as of March 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 loans.
(5)
Net charge-offs as a percent of average gross loss. Charge-off ratio in the recreation lending segment was 4.67% when excluding loans held for sale

(NM) Not meaningful.

(*) Line item is not applicable to segments.