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 for the purpose of financing RVs, boats, collector automobiles, and other consumer recreational equipment, of which RVs, boats, and collector automobiles make up 54%, 21%, and 11% of the segment portfolio, with no other product lines equal to or exceeding 10%, as of June 30, 2024. The highest concentrations of recreation loans are in Texas and Florida at 16% and 10% of loans outstanding and with no other states at or above 10% as of June 30, 2024. The home improvement lending segment works with contractors and financial service providers to finance residential home improvement with the largest product lines being roofs, swimming pools, and windows at 40%, 21%, and 13% of total home improvement loans outstanding, and with no other product lines exceeding 10% as of June 30, 2024. The highest concentrations of home improvement loans are in Texas and Florida both at 10% of loans outstanding and with no other states at or above 10% as of June 30, 2024. The commercial lending segment focuses on serving a wide variety of industries, with concentrations in manufacturing, construction, and wholesale trade making up 55%, 14%, and 11% of the loans outstanding as of June 30, 2024, with no other product lines exceeding 10% as of June 30, 2024. The commercial lending segment invests across the United States with concentrations in California, Wisconsin, and Texas each having 30%, 10%, and 10% of the segment portfolio, and no other states having a concentration at or greater than 10% as of June 30, 2024. 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 June 30, 2024.

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, and other corporate elements.

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 following tables present segment data as of and for the three and six months ended June 30, 2024.


Three Months Ended June 30, 2024	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	47,490		$	17,651		$	3,538		$	190		$	1,835		$	70,704
Total interest expense		10,960			6,106			1,056			25			2,689			20,836
Net interest income (loss)		36,530			11,545			2,482			165			(854	)		49,868
Provision (benefit) for credit losses		15,795			3,279			478			(975	)		—			18,577
Net interest income (loss) after loss provision		20,735			8,266			2,004			1,140			(854	)		31,291
Other income (loss), net		306			3			(14	)		334			470			1,099
Operating expenses		(11,236	)		(5,457	)		(1,437	)		(1,373	)		(492	)		(19,995	)
Net income (loss) before taxes		9,805			2,812			553			101			(876	)		12,395
Income tax (provision) benefit		(3,094	)		(802	)		(72	)		(14	)		200			(3,782	)
Net income (loss) after taxes	$	6,711		$	2,010		$	481		$	87		$	(676	)	$	8,613
Income attributable to the non-controlling interest																	1,512
Total net income attributable to Medallion Financial Corp.																$	7,101
Balance Sheet Data
Total loans	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590
Total assets		1,451,947			758,840			105,548			7,511			437,030			2,760,876
Total funds borrowed		1,200,977			627,674			87,304			6,213			361,488			2,283,656
Selected Financial Ratios
Return on average assets		1.95	%		1.08	%		1.86	%		4.29	%		(0.61	)%		1.30	%
Return on average stockholders' equity	*			*			*			*			*				8.14
Return on average equity		13.05			7.00			12.09			25.69			(3.88	)		8.25
Interest yield		13.30			9.32			13.08			21.62		NM				11.52
Net interest margin, gross		10.23			6.10			9.18			18.78		NM				8.12
Net interest margin, net of allowance		10.69			6.25			9.57			31.77		NM				8.42
Reserve coverage		4.35			2.38			4.41			40.18		NM				3.76
Delinquency status (1)		0.41			0.17			7.52			—		NM				0.67
Charge-off (recovery) ratio (2)		2.99			1.49			—			(98.90	)	NM				2.20

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.


Six Months Ended June 30, 2024	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	91,417		$	35,098		$	7,183		$	330		$	3,746		$	137,774
Total interest expense		20,605			11,740			2,154			53			5,437			39,989
Net interest income (loss)		70,812			23,358			5,029			277			(1,691	)		97,785
Provision (benefit) for credit losses		32,825			4,177			694			(1,918	)		—			35,778
Net interest income (loss) after loss provision		37,987			19,181			4,335			2,195			(1,691	)		62,007
Other income, net		556			5			4,188			973			780			6,502
Operating expenses		(19,523	)		(9,571	)		(2,422	)		(2,116	)		(4,588	)		(38,220	)
Net income (loss) before taxes		19,020			9,615			6,101			1,052			(5,499	)		30,289
Income tax (provision) benefit		(6,368	)		(3,219	)		(2,043	)		(352	)		1,842			(10,140	)
Net income (loss) after taxes	$	12,652		$	6,396		$	4,058		$	700		$	(3,657	)	$	20,149
Income attributable to the non-controlling interest																	3,024
Total net income attributable to Medallion Financial Corp.																$	17,125
Balance Sheet Data
Total loans	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590
Total assets		1,451,947			758,840			105,548			7,511			437,030			2,760,876
Total funds borrowed		1,200,977			627,674			87,304			6,213			361,488			2,283,656
Selected Financial Ratios
Return on average assets		1.87	%		1.72	%		7.68	%		14.89	%		(1.69	)%		1.55	%
Return on average stockholders' equity	*			*			*			*			*				9.89
Return on average equity		12.31			11.04			49.32			90.99			(10.64	)		9.70
Interest yield		13.20			9.29			12.97			18.78		NM				11.42
Net interest margin, gross		10.23			6.18			9.08			15.59		NM				8.11
Net interest margin, net of allowance		10.69			6.34			9.45			26.61		NM				8.40
Reserve coverage		4.35			2.38			4.41			40.18		NM				3.76
Delinquency status(1)		0.41			0.17			7.52			—		NM				0.67
Charge-off (recovery) ratio(2)		3.64			1.80			(0.04	)		(100.16	)	NM				2.68

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

The following tables present segment data as of and for the three and six months ended June 30, 2023.


Three Months June 30, 2023	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	41,109		$	15,292		$	2,814		$	787		$	1,724		$	61,726
Total interest expense		7,580			4,194			852			46			2,363			15,035
Net interest income (loss)		33,529			11,098			1,962			741			(639	)		46,691
Provision (benefit) for credit losses		10,135			3,739			(113	)		(5,311	)		26			8,476
Net interest income (loss) after loss provision		23,394			7,359			2,075			6,052			(665	)		38,215
Other income, net		—			2			343			1,304			293			1,942
Operating expenses		(8,444	)		(4,388	)		(1,147	)		(743	)		(4,281	)		(19,003	)
Net income (loss) before taxes		14,950			2,973			1,271			6,613			(4,653	)		21,154
Income tax (provision) benefit		(3,867	)		(769	)		(329	)		(1,713	)		1,206			(5,472	)
Net income (loss) after taxes	$	11,083		$	2,204		$	942		$	4,900		$	(3,447	)	$	15,682
Income attributable to the non-controlling interest																	1,512
Total net income attributable to Medallion Financial Corp.																$	14,170
Balance Sheet Data
Total loans, gross	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998
Total assets		1,294,925			718,383			99,713			18,724			387,392			2,519,137
Total funds borrowed		1,062,309			589,335			81,801			15,360			317,802			2,066,607
Selected Financial Ratios
Return on average assets		3.59	%		1.28	%		3.76	%		100.63	%		(3.69	)%		2.60	%
Return on average stockholders' equity	*			*			*			*			*				18.24
Return on average equity		22.94			8.19			23.97			641.63			(22.83	)		16.52
Interest yield		13.03			8.79			11.87			83.55		NM				11.21
Net interest margin, gross		10.63			6.38			8.28			78.67		NM				8.48
Net interest margin, net of allowance		11.08			6.53			8.54			166.23		NM				8.77
Reserve coverage		4.07			2.26			2.72			52.76		NM				3.48
Delinquency status (1)		0.39			0.16			0.08			—		NM				0.29
Charge-off (recovery) ratio (2)		1.86			1.12			3.80			(525.21	)	NM				0.74

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.


Six Months Ended June 30, 2023	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	79,008		$	28,941		$	5,515		$	1,097		$	3,007		$	117,568
Total interest expense		13,484			7,473			1,661			113			4,544			27,275
Net interest income (loss)		65,524			21,468			3,854			984			(1,537	)		90,293
Provision (benefit) for credit losses		17,886			6,820			214			(12,395	)		(11	)		12,514
Net interest income (loss) after loss provision		47,638			14,648			3,640			13,379			(1,526	)		77,779
Other income, net		—			3			614			2,923			485			4,025
Operating expenses		(16,247	)		(8,382	)		(1,567	)		(2,770	)		(8,429	)		(37,395	)
Net income (loss) before taxes		31,391			6,269			2,687			13,532			(9,470	)		44,409
Income tax (provision) benefit		(8,380	)		(1,674	)		(718	)		(3,612	)		2,530			(11,854	)
Net income (loss) after taxes	$	23,011		$	4,595		$	1,969		$	9,920		$	(6,940	)	$	32,555
Income attributable to the non-controlling interest																	3,024
Total net income attributable to Medallion Financial Corp.																$	29,531
Balance Sheet Data
Total loans, gross	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998
Total assets		1,294,925			718,383			99,713			18,724			387,392			2,519,137
Total funds borrowed		1,062,309			589,335			81,801			15,360			317,802			2,066,607
Selected Financial Ratios
Return on average assets		3.84	%		1.39	%		3.94	%		94.20	%		(3.70	)%		2.79	%
Return on average stockholders' equity	*			*			*			*			*				19.45
Return on average equity		24.13			8.76			24.74			590.25			(23.24	)		17.49
Interest yield		12.93			8.66			11.71			28.80		NM				11.01
Net interest margin, gross		10.72			6.43			8.18			25.84		NM				8.45
Net interest margin, net of allowance		11.18			6.57			8.43			73.52		NM				8.75
Reserve coverage		4.07			2.26			2.72			52.76		NM				3.48
Delinquency status(1)		0.39			0.16			0.08			—		NM				0.29
Charge-off (recovery) ratio (2)		2.57			0.97			1.89			(124.01	)	NM				1.51

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.