Segment Reporting

6 Months Ended

Jun. 30, 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 12% of the segment portfolio, with no other product lines at or above 10%, as of June 30, 2025. 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, 2025. 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 30%, 30%, and 11% of total home improvement loans outstanding, and with no other product lines at or above 10% as of June 30, 2025. The highest concentrations of home improvement loans are in Florida and Texas at 13% and 12% of loans outstanding, with no other states at or above 10% as of June 30, 2025. The commercial lending segment focuses on serving a wide variety of industries, with concentrations in manufacturing, construction, and wholesale trade making up 57%, 18%, and 11% of the loans outstanding as of June 30, 2025, with no other product lines exceeding 10% as of June 30, 2025. The commercial lending segment invests across the United States with a concentration in California having 29% of the segment portfolio, with no other states having a concentration at or above 10% as of June 30, 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 June 30, 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 percent 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 Chief Executive Officer, Chief Financial Officer, President and Chief Operating 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 June 30, 2025.

Three Months Ended June 30, 2025	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	51,101		$	20,133		$	3,755		$	72		$	2,381		$	77,442
Total interest expense		12,854			7,325			1,157			38			2,698			24,072
Net interest income (loss)		38,247			12,808			2,598			34			(317	)		53,370
Provision (benefit) for credit losses		15,336			3,934			2,912			(620	)		—			21,562
Net interest income (loss) after credit loss provision		22,911			8,874			(314	)		654			(317	)		31,808
Other income, net		1,366			3			6,358			748			734			9,209
Operating expenses		(10,036	)		(4,710	)		(1,409	)		(840	)		(4,550	)		(21,545	)
Net income (loss) before taxes		14,241			4,167			4,635			562			(4,133	)		19,472
Income tax (provision) benefit		(4,292	)		(1,232	)		(1,337	)		(168	)		1,224			(5,805	)
Net income (loss) after taxes	$	9,949		$	2,935		$	3,298		$	394		$	(2,909	)	$	13,667
Income attributable to the non-controlling interest																	2,598
Total net income attributable to Medallion Financial Corp.																$	11,069
Balance Sheet Data
Total loans, gross (1)	$	1,546,252		$	803,535		$	121,415		$	1,564		$	12,285		$	2,485,051
Total assets		1,493,721			787,432			111,961			6,009			480,871			2,879,994
Total funds borrowed		1,195,144			630,034			89,581			4,808			384,750			2,304,317
Selected Financial Ratios
Return on average assets		2.67	%		1.49	%		11.94	%		26.30	%		(2.53	)%		1.93	%
Return on average stockholders' equity	*			*			*			*			*				11.49
Return on average equity		15.59			8.68			69.66			142.23			(15.48	)		11.13
Interest yield		13.39			9.99			12.68			17.97		NM				11.75
Net interest margin, gross		10.02			6.35			8.78			8.49		NM				8.09
Net interest margin, net of allowance		10.53			6.52			9.49			10.95		NM				8.42
Reserve coverage (2)		5.05			2.54			9.14			21.62		NM				4.43
Delinquency status (3)		0.49			0.16			16.78			—		NM				1.19
Charge-off (recovery) ratio (4)		3.25			1.87			(0.03	)		(143.02	)	NM				2.44

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

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

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

(4)Charge-off ratio in the recreation lending segment was 3.11% when including 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 six months ended June 30, 2025.

Six Months Ended June 30, 2025	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	101,567		$	39,904		$	7,098		$	152		$	4,146		$	152,867
Total interest expense		24,895			14,289			2,210			50			6,641			48,085
Net interest income (loss)		76,672			25,615			4,888			102			(2,495	)		104,782
Provision (benefit) for credit losses		32,206			6,779			6,026			(1,435	)		—			43,576
Net interest income (loss) after credit loss provision		44,466			18,836			(1,138	)		1,537			(2,495	)		61,206
Other income, net		1,766			5			16,000			1,592			1,445			20,808
Operating expenses		(20,000	)		(9,694	)		(2,882	)		(1,823	)		(7,904	)		(42,303	)
Net income (loss) before taxes		26,232			9,147			11,980			1,306			(8,954	)		39,711
Income tax (provision) benefit		(8,269	)		(2,884	)		(3,773	)		(415	)		2,823			(12,518	)
Net income (loss) after taxes	$	17,963		$	6,263		$	8,207		$	891		$	(6,131	)	$	27,193
Income attributable to the non-controlling interest																	4,110
Total net income attributable to Medallion Financial Corp.																$	23,083
Balance Sheet Data
Total loans, gross (1)	$	1,546,252		$	803,535		$	121,415		$	1,564		$	12,285		$	2,485,051
Total assets		1,493,721			787,432			111,961			6,009			480,871			2,879,994
Total funds borrowed		1,195,144			630,034			89,581			4,808			384,750			2,304,317
Selected Financial Ratios
Return on average assets		2.42	%		1.58	%		15.15	%		29.00	%		(2.71	)%		1.93	%
Return on average stockholders' equity	*			*			*			*			*				12.21
Return on average equity		14.25			9.31			88.99			162.17			(16.40	)		11.63
Interest yield		13.34			9.88			12.38			19.07		NM				11.70
Net interest margin, gross		10.07			6.34			8.53			12.45		NM				8.01
Net interest margin, net of allowance		10.57			6.50			9.10			16.44		NM				8.33
Reserve coverage (2)		5.05			2.54			9.14			21.62		NM				4.43
Delinquency status (3)		0.49			0.16			16.78			—		NM				1.19
Charge-off (recovery) ratio (4)		3.94			1.71			0.21			(150.51	)	NM				2.77

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

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

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

(4)Charge-off ratio in the recreation lending segment was 3.71% when including 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 three 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 credit loss provision		20,735			8,266			2,004			1,140			(854	)		31,291
Other income, 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, gross	$	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 (1)		4.35			2.38			4.41			40.18		NM				3.76
Delinquency status (2)		0.41			0.17			7.52			—		NM				0.67
Charge-off (recovery) ratio (3)		2.99			1.49			—			(98.90	)	NM				2.20

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

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

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

(NM) Not meaningful.

(*) Line item is not applicable to segments.

The following table presents segment data as of and for the six months ended June 30, 2024.

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 credit 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, gross	$	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 (1)		4.35			2.38			4.41			40.18		NM				3.76
Delinquency status (2)		0.41			0.17			7.52			—		NM				0.67
Charge-off (recovery) ratio (3)		3.64			1.80			(0.04	)		(100.16	)	NM				2.68

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

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

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

(NM) Not meaningful.

(*) Line item is not applicable to segments.