Medallion Financial recorded fourth-quarter interest income of $74.5 million in its consumer lending segment, up 5% year over year, and achieved net interest income of $56.4 million, an 8% increase from the prior Q4. The company reported a 11.70% total interest yield with a borrowing cost of 4.24%, while net interest margin expanded 20 basis points to 8.04%.

Total loans at year-end climbed to $2.567 billion with full-year originations of $1.5 billion, including $421 million in Q4. Recreation loans grew 5% to $1.6 billion (63% of portfolio) with $97.2 million Q4 originations, and home improvement reached $810.2 million (32% of portfolio) with $61.7 million in Q4 originations. Commercial originations totaled $4.1 million in Q4 and $40.6 million for the year.

The fourth-quarter provision for credit losses rose to $27.7 million, driven by a $7.1 million allowance build in recreation and a $1.6 million provision for commercial loans, while net charge-offs in recreation totaled $17.9 million. Delinquencies over 90 days were 0.82% in recreation and 0.16% in home improvement, with allowances of 5.32% and 2.41% respectively, reflecting disciplined credit actions.

The strategic partnership program posted record Q4 originations of $258.3 million, with $15.1 million of loans held on the balance sheet, reducing income by $1.8 million in the quarter. Equity investment gains amounted to $8.8 million in Q4 and $24.6 million for 2025, supported by over two dozen strategic stakes valued at $8.1 million.