MEDALLION FINANCIAL CORP, 10-Q filed on 05 Aug 26
 | XBRL Documents
v3.26.1
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2026
Aug. 04, 2026
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Jun. 30, 2026  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q2  
Entity Registrant Name MEDALLION FINANCIAL CORP  
Entity Central Index Key 0001000209  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   22,960,249
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Shell Company false  
Entity Incorporation, State or Country Code DE  
Entity File Number 001-37747  
Entity Tax Identification Number 04-3291176  
Entity Address, Address Line One 667 MADISON AVENUE, 22nd Floor  
Entity Address, City or Town NEW YORK  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10065  
City Area Code 212  
Local Phone Number 328-2100  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol MFIN  
Security Exchange Name NASDAQ  
v3.26.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Assets    
Cash and cash equivalents $ 172,581 $ 136,266
Federal funds sold 33,410 65,298
Investment securities 69,933 60,183
Equity investments 8,734 8,099
Loans held for sale, at lower of amortized cost or fair value 21,376 15,144
Loans 2,773,366 2,551,705
Allowance for credit losses (122,701) [1] (114,789) [2]
Net loans receivable 2,650,665 2,436,916
Goodwill 150,803 150,803
Intangible assets, net 16,979 17,701
Accrued interest receivable 20,923 19,401
Property, equipment, and right-of-use lease assets, net 8,666 11,861
Loan collateral in process of foreclosure 6,646 7,333
Income tax receivable 1,143 0
Other assets 31,726 26,459
Total assets 3,193,585 2,955,464
Liabilities    
Deposits [3] 2,293,935 2,084,265
Long-term debt [4] 287,547 215,987
Short-term debt 54,500 95,250
Deferred tax liabilities, net [5] 19,973 19,596
Operating lease liabilities 3,876 5,041
Accrued interest payable 6,101 6,319
Income tax payable 0 759
Accounts payable and accrued expenses [6] 22,206 20,201
Total liabilities 2,688,138 2,447,418
Commitments and contingencies
Stockholders’ equity    
Preferred stock (1,000,000 shares of $0.01 par value stock authorized-none outstanding) 0 0
Common stock (50,000,000 shares of $0.01 par value stock authorized - 30,102,353 shares at June 30, 2026 and 29,592,592 shares at December 31, 2025 issued) 301 296
Additional paid in capital 298,799 299,458
Treasury stock (7,060,708 shares at June 30, 2026 and 6,280,909 at December 31, 2025) (58,814) (51,130)
Accumulated other comprehensive loss (2,859) (2,381)
Retained earnings 168,591 162,374
Total stockholders’ equity 406,018 408,617
Non-controlling interest in consolidated subsidiaries 99,429 99,429
Total equity 505,447 508,046
Total liabilities and equity $ 3,193,585 $ 2,955,464
Number of shares outstanding 23,041,645 23,311,683
Book value per share $ 17.62 $ 17.53
[1] Does not include loans held for sale which are carried at the lower of amortized cost or fair value for which an allowance for credit loss is not established.
[2] Does not include loans held for sale which are carried at the lower of amortized cost or fair value for which an allowance for credit loss is not established.
[3] Includes $5.5 million and $5.2 million of deferred financing costs as of June 30, 2026 and December 31, 2025. Refer to Note 5 for more details.
[4] Includes $4.7 million and $3.3 million of deferred financing costs as of June 30, 2026 and December 31, 2025. Refer to Note 5 for more details.
[5] Includes $42.2 million and $42.4 million of deferred tax liabilities related to goodwill and intangible assets as of June 30, 2026 and December 31, 2025. Refer to Note 7 for more details.
[6] Includes the short-term portion of lease liabilities of $0.5 million and $2.2 million as of June 30, 2026 and December 31, 2025. Refer to Note 6 for more details.
v3.26.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2026
Dec. 31, 2025
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 50,000,000 50,000,000
Common stock, par value $ 0.01 $ 0.01
Common stock, shares issued 30,102,353 29,592,592
Treasury stock, shares 7,060,708 6,280,909
Deferred tax liabilities related to goodwill and intangible assets $ 42,226 $ 42,408
Short term lease liabilities 500 2,200
Deferred financing costs 10,200 8,400
Deposits [Member]    
Deferred financing costs 5,500 5,200
Long-Term Debt [Member]    
Deferred financing costs $ 4,700 $ 3,300
v3.26.1
Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Income Statement [Abstract]        
Interest and fees on loans $ 82,285 $ 75,528 $ 159,621 $ 149,265
Non-loan interest and dividend income 2,092 1,914 3,824 3,602
Total interest income 84,377 77,442 163,445 152,867
Interest on deposits 22,122 19,608 42,858 39,223
Interest on long-term debt 4,973 3,916 8,781 7,606
Interest on short-term borrowings 35 548 500 1,256
Total interest expense 27,130 24,072 52,139 48,085
Net interest income 57,247 53,370 111,306 104,782
Provision for credit losses 22,273 21,562 44,749 43,576
Net interest income after provision for credit losses 34,974 31,808 66,557 61,206
Other income        
Gain on taxi medallion assets, net 1,316 749 2,415 1,592
Strategic partnership fees 1,136 787 1,959 1,472
Gain on sale of recreation loans 1,281 1,304 1,281 1,304
Gain on equity investments, net 232 6,096 545 15,526
Other income 511 273 684 914
Other income, net 4,476 9,209 6,884 20,808
Other expenses        
Salaries and employee benefits 11,247 10,148 22,247 20,141
Loan servicing fees 4,366 2,899 7,903 5,716
Collection costs 1,931 2,033 3,868 3,772
Professional fee costs, net 2,088 1,187 3,340 2,937
Regulatory fees 1,002 1,109 1,981 1,930
Rent expense 698 683 1,395 1,358
Depreciation 656 628 1,288 1,246
Amortization of intangible assets 362 362 723 723
Director compensation 441 424 873 836
Other expenses 2,162 2,072 3,709 3,644
Total other expenses 24,953 21,545 47,327 42,303
Net income (loss) before taxes 14,497 19,472 26,114 39,711
Income tax provision 4,717 5,805 9,045 12,518
Net income (loss) 9,780 13,667 17,069 27,193
Less: income attributable to the non-controlling interest 2,335 2,598 4,671 4,110
Net income attributable to Medallion Financial Corp. $ 7,445 $ 11,069 $ 12,398 $ 23,083
Basic earnings per share $ 0.32 $ 0.49 $ 0.53 $ 1.02
Diluted earnings per share $ 0.31 $ 0.46 $ 0.51 $ 0.96
Weighted average common shares outstanding        
Basic 23,288,732 22,783,947 23,174,870 22,677,961
Diluted 24,013,303 24,058,084 24,280,184 23,978,214
v3.26.1
Consolidated Statements of Other Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Statement of Comprehensive Income [Abstract]        
Net income $ 9,780 $ 13,667 $ 17,069 $ 27,193
Unrealized holding (losses) gains on investment securities arising during the period (129) (124) (660) 763
Tax effect on unrealized (losses) gains on investments 36 35 182 (214)
Total comprehensive income 9,687 13,578 16,591 27,742
Less: income attributable to the non-controlling interest 2,335 2,598 4,671 4,110
Total comprehensive income attributable to Medallion Financial Corp. $ 7,352 $ 10,980 $ 11,920 $ 23,632
v3.26.1
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid In Capital [Member]
Treasury Stock [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Parent [Member]
Noncontrolling Interest [Member]
Balance at Dec. 31, 2024 $ 438,958 $ 293 $ 293,412 $ (50,144) $ 130,256 $ (3,647) $ 370,170 $ 68,788
Balance, shares at Dec. 31, 2024   29,308,182            
Balance, shares at Dec. 31, 2024       (6,172,558)        
Net income 13,526              
Net income         12,014   12,014 1,512
Distributions to non-controlling interest (1,512)             (1,512)
Stock-based compensation expense 1,688 $ 2 1,686       1,688  
Exercise of stock options, value 1   1       1  
Exercise of stock options, shares   265            
Issuance of restricted stock, net, shares   307,059            
Withheld restricted stock for employees' tax obligations, shares   (144,360)            
Withheld restricted stock for employees' tax obligations, value (1,202)   (1,202)       (1,202)  
Forfeiture of restricted stock, net, shares   (3,373)            
Purchase of common stock (in Shares)       (60,185)        
Purchase of common stock (531)     $ (531)     (531)  
Dividends paid on common stock (2,554)       (2,554)   (2,554)  
Other comprehensive income (loss), net of tax 638         638 638  
Ending balance at Mar. 31, 2025 449,012 $ 295 293,897 $ (50,675) 139,716 (3,009) 380,224 68,788
Ending balance, shares at Mar. 31, 2025   29,467,773            
Ending balance, shares at Mar. 31, 2025       (6,232,743)        
Balance at Dec. 31, 2024 438,958 $ 293 293,412 $ (50,144) 130,256 (3,647) 370,170 68,788
Balance, shares at Dec. 31, 2024   29,308,182            
Balance, shares at Dec. 31, 2024       (6,172,558)        
Net income 27,193              
Net income 23,083              
Ending balance at Jun. 30, 2025 532,565 $ 295 295,834 $ (51,130) 147,995 (3,098) 389,896 142,669
Ending balance, shares at Jun. 30, 2025   29,527,502            
Ending balance, shares at Jun. 30, 2025       (6,280,909)        
Balance at Dec. 31, 2024 $ 438,958 $ 293 293,412 $ (50,144) 130,256 (3,647) 370,170 68,788
Balance, shares at Dec. 31, 2024   29,308,182            
Balance, shares at Dec. 31, 2024       (6,172,558)        
Exercise of stock options, shares 82,081              
Ending balance at Dec. 31, 2025 $ 508,046 $ 296 299,458 $ (51,130) 162,374 (2,381) 408,617 99,429
Ending balance, shares at Dec. 31, 2025 23,311,683 29,592,592            
Ending balance, shares at Dec. 31, 2025 6,280,909     (6,280,909)        
Balance at Mar. 31, 2025 $ 449,012 $ 295 293,897 $ (50,675) 139,716 (3,009) 380,224 68,788
Balance, shares at Mar. 31, 2025   29,467,773            
Balance, shares at Mar. 31, 2025       (6,232,743)        
Net income 13,667              
Net income 11,069       11,069   11,069 2,598
Distributions to non-controlling interest (1,843)             (1,843)
Non-controlling interest equity raised by Medallion Bank 73,126             73,126
Stock-based compensation expense 1,681   1,681       1,681  
Exercise of stock options, value 256   256       256  
Exercise of stock options, shares   41,061            
Forfeiture of restricted stock, net, shares   (476)            
Issuance in connection with vesting of restricted stock units   19,144            
Purchase of common stock (in Shares)       (48,166)        
Purchase of common stock (455)     $ (455)     (455)  
Dividends paid on common stock (2,790)       (2,790)   (2,790)  
Other comprehensive income (loss), net of tax (89)         (89) (89)  
Ending balance at Jun. 30, 2025 532,565 $ 295 295,834 $ (51,130) 147,995 (3,098) 389,896 142,669
Ending balance, shares at Jun. 30, 2025   29,527,502            
Ending balance, shares at Jun. 30, 2025       (6,280,909)        
Balance at Dec. 31, 2025 $ 508,046 $ 296 299,458 $ (51,130) 162,374 (2,381) 408,617 99,429
Balance, shares at Dec. 31, 2025 23,311,683 29,592,592            
Balance, shares at Dec. 31, 2025 6,280,909     (6,280,909)        
Net income $ 7,289              
Net income         4,953   4,953 2,336
Distributions to non-controlling interest (2,336)             (2,336)
Stock-based compensation expense 2,075 $ 9 2,066       2,075  
Exercise of stock options, value $ 13   13       13  
Exercise of stock options, shares 2,224 [1] 2,224            
Issuance of restricted stock, net, shares   344,206            
Withheld restricted stock for employees' tax obligations, shares   (444,683)            
Withheld restricted stock for employees' tax obligations, value $ (4,327) $ (4) (4,323)       (4,327)  
Forfeiture of restricted stock, net, shares   (1,569)            
Issuance in connection with vesting of restricted stock units   652,577            
Dividends paid on common stock (2,862)       (2,862)   (2,862)  
Other comprehensive income (loss), net of tax (385)         (385) (385)  
Ending balance at Mar. 31, 2026 507,513 $ 301 297,214 $ (51,130) 164,465 (2,766) 408,084 99,429
Ending balance, shares at Mar. 31, 2026   30,145,347            
Ending balance, shares at Mar. 31, 2026       (6,280,909)        
Balance at Dec. 31, 2025 $ 508,046 $ 296 299,458 $ (51,130) 162,374 (2,381) 408,617 99,429
Balance, shares at Dec. 31, 2025 23,311,683 29,592,592            
Balance, shares at Dec. 31, 2025 6,280,909     (6,280,909)        
Net income $ 17,069              
Net income 12,398              
Ending balance at Jun. 30, 2026 $ 505,447 $ 301 298,799 $ (58,814) 168,591 (2,859) 406,018 99,429
Ending balance, shares at Jun. 30, 2026 23,041,645 30,102,353            
Ending balance, shares at Jun. 30, 2026 7,060,708     (7,060,708)        
Balance at Mar. 31, 2026 $ 507,513 $ 301 297,214 $ (51,130) 164,465 (2,766) 408,084 99,429
Balance, shares at Mar. 31, 2026   30,145,347            
Balance, shares at Mar. 31, 2026       (6,280,909)        
Net income 9,780              
Net income 7,445       7,445   7,445 2,335
Distributions to non-controlling interest (2,335)             (2,335)
Stock-based compensation expense 1,903   1,903       1,903  
Exercise of stock options, value $ 88   88       88  
Exercise of stock options, shares 13,154 [1] 13,154            
Withheld restricted stock for employees' tax obligations, shares   (40,770)            
Withheld restricted stock for employees' tax obligations, value $ (406)   (406)       (406)  
Forfeiture of restricted stock, net, shares   (33,140)            
Issuance in connection with vesting of restricted stock units   17,762            
Purchase of common stock (in Shares)       (779,799)        
Purchase of common stock (7,684)     $ (7,684)     (7,684)  
Dividends paid on common stock (3,319)       (3,319)   (3,319)  
Other comprehensive income (loss), net of tax (93)         (93) (93)  
Ending balance at Jun. 30, 2026 $ 505,447 $ 301 $ 298,799 $ (58,814) $ 168,591 $ (2,859) $ 406,018 $ 99,429
Ending balance, shares at Jun. 30, 2026 23,041,645 30,102,353            
Ending balance, shares at Jun. 30, 2026 7,060,708     (7,060,708)        
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three and six months ended June 30, 2026 and $0.3 million for the year ended December 31, 2025.
v3.26.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income resulting from operations $ 17,069 $ 27,193
Adjustments to reconcile net income resulting from operations to net cash provided by operating activities:    
Provision for credit losses 44,749 43,576
Proceeds from sales of strategic partnership loans held for sale 410,850 299,978
Gain on sale of recreation loans (1,281) (1,304)
Origination of loans held for sale (417,082) (304,877)
Paid-in-kind interest income (590) (485)
Depreciation and amortization 4,231 4,218
Amortization of loan origination costs and fees, net 6,664 4,915
(Decrease) increase in deferred and other tax liabilities, net (1,525) 3,109
Net gains on equity investments (545) (15,526)
Stock-based compensation expense 3,978 3,369
(Increase) decrease in accrued interest receivable (1,522) 20
Increase in other assets (6,971) (46,399)
Increase (decrease) in accounts payable and accrued expenses 992 (5,118)
Decrease in accrued interest payable (220) (2,485)
Net cash provided by operating activities 58,797 10,184
CASH FLOWS FROM INVESTING ACTIVITIES    
Loans originated (585,785) (357,691)
Proceeds from principal receipts, sales, and maturities of loans 316,458 325,541
Purchases of investments (13,385) (13,550)
Proceeds from principal receipts, sales, and maturities of investments 2,715 23,985
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 6,725 6,771
Net cash used in investing activities (273,272) (14,944)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from time deposits and funds borrowed 775,678 1,048,514
Repayments of time deposits and funds borrowed (533,456) (1,123,610)
Non-controlling interest equity raised by Medallion Bank 0 73,126
Cash dividends paid on common stock (6,333) (5,562)
Distributions to non-controlling interests (4,671) (3,355)
Payment of withholding taxes on net settlement of vested stock (4,733) (1,202)
Treasury stock repurchased (7,684) (986)
Proceeds from the exercise of stock options 101 257
Net cash provided by (used in) financing activities 218,902 (12,818)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,427 (17,578)
Cash and cash equivalents, beginning of period [1] 201,564 169,572
Cash and cash equivalents, end of period (1) [1] 205,991 151,994
SUPPLEMENTAL INFORMATION    
Cash paid during the period for interest 50,155 48,337
Cash paid during the period for income taxes 10,298 9,665
NON-CASH INVESTING    
Loans transferred to loan collateral in process of foreclosure, net $ 6,036 $ 5,846
[1] Includes federal funds sold.
v3.26.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Pay vs Performance Disclosure        
Net Income (Loss) $ 7,445 $ 11,069 $ 12,398 $ 23,083
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Non Rule 10b5-1 Arrangement Modified false
Rule 10b5-1 Arrangement Modified false
v3.26.1
Organization of Medallion Financial Corp. and its Subsidiaries
 6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization of Medallion Financial Corp. and its Subsidiaries

(1) ORGANIZATION OF MEDALLION FINANCIAL CORP. AND ITS SUBSIDIARIES

Medallion Financial Corp., or the Company, is a specialty finance company organized as a Delaware corporation that reports as a bank holding company but is not a bank holding company for regulatory purposes. The Company conducts its business through various wholly-owned subsidiaries including its primary operating company, Medallion Bank, or the Bank, a Federal Deposit Insurance Corporation, or FDIC, insured industrial bank that originates consumer loans, raises deposits, and conducts other banking activities. The Bank is subject to competition from other financial institutions and to the regulations of certain federal and state agencies and undergoes examinations by those agencies. The Bank was formed in May 2002 for the purpose of obtaining an industrial bank charter pursuant to the laws of the State of Utah. The Bank originates consumer loans on a national basis for the purchase of recreational vehicles, or RVs, boats, collector cars, and other consumer recreational equipment and to finance home improvements such as swimming pools, roofs, and windows. The loans are financed primarily with time certificates of deposit which are originated nationally through a variety of brokered deposit relationships.

The Company also conducts business through its subsidiaries Medallion Capital, Inc., or Medallion Capital, a Small Business Investment Company, or SBIC, which conducts a mezzanine financing business; and Freshstart Venture Capital Corp., or Freshstart, which historically originated and serviced taxi medallion and commercial loans. Medallion Capital, an SBIC, is regulated by the Small Business Administration, or SBA. Medallion Capital is financed in part by the SBA.

The Company established a wholly-owned subsidiary, Medallion Financing Trust I, or Fin Trust, for the purpose of issuing unsecured trust preferred securities to investors. Fin Trust is a separate legal and corporate entity with its own creditors who, in any liquidation of Fin Trust, will be entitled to be satisfied out of Fin Trust’s assets prior to any value in Fin Trust becoming available to Fin Trust’s equity holders. The assets of Fin Trust, aggregating $34.9 million at June 30, 2026, are comprised solely of a subordinated note from the Company and are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Fin Trust.
v3.26.1
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the U.S., or GAAP, requires management to make estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. Accounting estimates and assumptions are those that management considers to be the most critical to an understanding of the consolidated financial statements because they inherently involve significant judgments and uncertainties. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these consolidated financial statements. If such conditions change, it is reasonably possible that the judgments and estimates could change, which may result in future impairments of goodwill and intangible assets, and allowance for credit losses, among other effects.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation.

The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of variable interest entities, or VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest.

Cash, Cash Equivalents, and Restricted Cash

The Company considers all highly liquid instruments with an original purchased maturity of three months or less, federal funds sold, interest-bearing deposits in other banks, and money market mutual funds to be cash equivalents. A non-interest-bearing compensating balance of $0.9 million and $0.7 million as of June 30, 2026 and December 31, 2025 was maintained at a correspondent bank and considered to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash also included $0.3 million and $0.8 million of interest-bearing funds deposited in other banks with original terms of 5 to 6 years that cannot be withdrawn but are salable on an active secondary market, without penalty, as of June 30, 2026 and December 31, 2025. As of June 30, 2026, the Company held $0.6 million in a money market account in connection with a letter of credit. Certain of the Company's borrowings require that the Company and its subsidiaries maintain cash at specific levels pursuant to covenants in applicable debt agreements. The Company is compliant with these covenants as of June 30, 2026.

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, FASB Accounting Standards Codification, or ASC, Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e., a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 12 and 13 to the consolidated financial statements.

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments were $8.7 million and $8.1 million as of June 30, 2026 and December 31, 2025, which were comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. Substantially all of these equity investments are held by Medallion Capital, our SBIC subsidiary, in connection with its mezzanine lending business. As of June 30, 2026, cumulative impairment of $5.3 million had been recorded with respect to these investments. During the three and six months ended June 30, 2026, the Company recognized net gains of $0.2 million and $0.5 million on equity investments, net of losses, inclusive of $0 and $0.4 million of net realized gains.

During 2021, the Company purchased $2.0 million of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in gain (loss) on equity investments. The fair value of these securities were $1.8 million as of both June 30, 2026 and December 31, 2025 and are included in other assets on the consolidated balance sheets. The Company recognized less than $0.1 million of losses for each of the three and six months ended June 30, 2026 and less than $0.1 million of gains for each of the three and six months ended June 30, 2025.

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized using the interest method. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed. In accordance with ASC 326, the Company does not maintain an allowance for credit losses for accrued interest receivable.

For available-for-sale debt securities in an unrealized loss position, the Company first determines if it intends to sell the security, or if it is more likely than not that the Company will be required to sell it before recovering its amortized cost basis. If either condition is met, the security’s amortized cost basis is written down to its fair value through earnings. If neither condition is met, the Company assesses whether the decline in fair value is the result of credit losses or other factors. This assessment includes reviewing changes in the rating of the security by a rating agency, increases in defaults on the underlying collateral, and the extent to which the securities are issued by the federal government or its agencies, including the amount of the guarantee issued by those agencies, among other factors. If a credit loss exists, the Company compares the present value of expected cash flows from the security to its amortized cost basis. If the present value is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded through earnings, but limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment not recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of taxes.

Changes in the allowance for credit losses are recorded as a provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management confirms the uncollectibility of an available-for-sale debt security or when either of the criteria regarding intent or requirement to sell is met. There were no investment securities allowance for credit losses as of June 30, 2026 and December 31, 2025.

Loans

The Company’s loans, classified as held for investment, are currently reported at amortized cost, which is the principal amount outstanding, inclusive of loan origination costs, which primarily includes deferred costs paid to loan originators, and which are amortized to interest income over the life of the loan.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. As of June 30, 2026 and December 31, 2025, net loan origination costs included in loans were $59.7 million and $52.0 million. Net amortization reducing interest income was $3.7 million and $6.7 million for the three and six months ended June 30, 2026 and was $2.6 million and $4.9 million for the three and six months ended June 30, 2025.

Interest income is recorded on the accrual basis. The consumer loan portfolio is typified by a large number of smaller dollar loans that have similar characteristics. When, based on current information and events, it is unlikely the Company will be able to collect all amounts due according to the contractual terms of the original loan agreement, a loan is considered nonperforming. Loans are considered past due when a borrower fails to make a full payment by the payment due date or maturity date. Consumer loans are placed on nonaccrual when they become 90 days past due, and are charged off in their entirety when deemed uncollectible, if they enter bankruptcy, or when they become 120 days past due, whichever occurs first. The Company takes appropriate recovery efforts against both the borrower and the underlying collateral are initiated for nonaccrual loans. For the recreation loan portfolio, the process to repossess the collateral is generally started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged off. If the collateral is repossessed, a loss is recorded by writing the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as recoveries. Commercial loans and taxi medallion loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectibility of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal.

The Company may modify the contractual cash flow of loans in situations where borrowers are experiencing financial difficulties. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include interest rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off.

Loan collateral in process of foreclosure includes consumer repossessed collateral in the process of being sold in addition to taxi medallion loans that have reached 120 days past due and have been charged down to the net realizable value of the underlying collateral. For New York City taxi medallion loans in the process of foreclosure, the Company continued to utilize a maximum net value of $79,500 when assessing net realizable value for these taxi medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time. The "loan collateral in the process of foreclosure" designation reflects that the collection activities on these loans have transitioned from working with the borrower to the liquidation of the collateral securing the loans.

Loans Held for Sale

Loans held for sale consist of consumer loans, including loans originated through strategic partnerships, that are intended to be sold. Loans held for sale are recorded at the lower of amortized cost or fair value. Changes in fair value are recognized in non-interest income. For loans transferred into the held for sale classification from the held for investment classification, any allowance for credit losses previously recorded is reversed at the transfer date, and the loans are transferred at their amortized cost basis (which is reduced by any previous charge-offs, but excludes any allowance for credit losses). For the three and six months ended June 30, 2026, the Company did not recognize any fair value adjustments related to loans held for sale.

Allowance for Credit Losses

The Company follows Accounting Standards Update, or ASU, 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or ASC 326, which requires recognition of lifetime expected losses using "reasonable and supportable" expectations about the future, referred to as the current expected credit loss, or CECL, methodology. For consumer loans, the Company uses historical delinquent loan performance, qualitative adjustments, and actual loss rates modified by quantitative adjustments based on macroeconomic factors over a twelve-month reasonable and supportable forecast period followed by a six month reversion period. For commercial loans, the Company assesses the historical impact that macroeconomic indicators have had on the loan portfolio, to determine an approximate allowance for credit loss. Unlike consumer loans, where loans may have similar performing characteristics, each commercial loan is unique. The Company evaluates each commercial loan for specific impairment with additional allowance for credit losses recognized as necessary. For taxi medallion loans, the Company individually evaluates each loan and establishes a reserve based on fair value of collateral less cost to sell.

The allowance is evaluated on a quarterly basis by management based on the collectibility of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation is inherently subjective, as it requires estimates, including those based on changes in economic conditions, that are susceptible to significant revision as more information becomes available. Credit losses are deducted from the allowance, and subsequent recoveries are added back to the allowance. The Company has elected to exclude accrued interest from its measurement of the allowance for credit losses.

Goodwill and Intangible Assets

Goodwill assets arose as a result of the excess of fair value over book value for several of our previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company's requirement to consolidate these previously unconsolidated subsidiaries and was subject to a purchase price accounting allocation process conducted by an independent third-party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis.

Other intangible assets with finite useful lives are amortized either on an accelerated or straight-line basis over their estimated useful lives. Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

As of June 30, 2026 and December 31, 2025, the Company had goodwill of $150.8 million, all of which related to the recreation and home improvement lending segments. As of June 30, 2026 and December 31, 2025, the Company had intangible assets of $17.0 million and $17.7 million. The Company recognized $0.4 million and $0.7 million of amortization expense on the intangible assets for the three and six months ended June 30, 2026 and 2025.

Management engaged an independent third-party expert to perform a quantitative assessment of goodwill for impairment at October 1, 2025. The third-party expert, as of the most recent goodwill impairment testing date, determined that a fair value premium existed in excess of the carrying value of the recreation and home improvement lending segments. During the three and six months ended June 30, 2026, the Company did not identify any triggering events that would require re-evaluation of goodwill impairment in either segment.

The table below presents the intangible assets as of the dates presented:

(Dollars in thousands)

 

June 30, 2026

 

 

December 31, 2025

 

Brand-related intellectual property

 

$

12,925

 

 

$

13,475

 

Home improvement contractor relationships

 

 

4,054

 

 

 

4,226

 

Total intangible assets

 

$

16,979

 

 

$

17,701

 

 

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $0.7 million and $1.3 million for the three and six months ended June 30, 2026 and $0.6 million and $1.2 million for the three and six months ended June 30, 2025.

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense, included as interest expense in the Consolidated Statements of Operations, was $1.2 million and $2.2 million for the three and six months ended June 30, 2026 and was $1.1 million and $2.2 million for the three and six months ended June 30, 2025. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amount of deferred financing costs on the Company’s balance sheet related to deposits and borrowing facilities were $10.2 million and $8.4 million as of June 30, 2026 and December 31, 2025, and there were no capitalized transaction costs as of June 30, 2026 and December 31, 2025.

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, or ASC 740. Deferred tax assets and liabilities reflect the impact of temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at the enacted tax rates expected to apply in the year when taxes are actually paid or recovered. Deferred tax assets are also recorded for net operating losses, capital losses and any tax credit carryforwards. A valuation allowance is provided against a deferred tax asset when it is more likely than not that some or all of the deferred tax assets will not be realized. All available evidence, both positive and negative, is considered to determine whether a valuation allowance for deferred tax assets is needed. Items considered in determining the Company’s valuation allowance include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carryforward periods and the expected timing of the reversal of temporary differences. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense.

Earnings Per Share (EPS)

Basic earnings per share are computed by dividing net income resulting from operations available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after considering the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below presents the calculation of basic and diluted EPS.

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands, except share and per share data)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net income attributable to common stockholders

 

$

7,445

 

 

$

11,069

 

 

$

12,398

 

 

$

23,083

 

Weighted average common shares outstanding applicable to basic EPS

 

 

23,288,732

 

 

 

22,783,947

 

 

 

23,174,870

 

 

 

22,677,961

 

Effect of performance stock unit grants

 

 

260,744

 

 

 

669,376

 

 

 

495,012

 

 

 

592,511

 

Effect of restricted stock grants

 

 

217,392

 

 

 

361,690

 

 

 

352,197

 

 

 

468,970

 

Effect of dilutive stock options

 

 

246,435

 

 

 

243,071

 

 

 

258,105

 

 

 

238,772

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

24,013,303

 

 

 

24,058,084

 

 

 

24,280,184

 

 

 

23,978,214

 

Basic earnings per share

 

$

0.32

 

 

$

0.49

 

 

$

0.53

 

 

$

1.02

 

Diluted earnings per share

 

 

0.31

 

 

 

0.46

 

 

 

0.51

 

 

 

0.96

 

Potentially dilutive common shares excluded from the above calculations were 18,311 shares as of June 30, 2026 and 86,410 shares as of June 30, 2025.

Stock Compensation

The Company follows FASB ASC Topic 718, or ASC 718, Compensation – Stock Compensation, for its equity incentive, stock option, and restricted stock plans, and accordingly, the Company recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options are reflected in net income resulting from operations for any new grants using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock and performance stock units, or PSUs, are reflected in net income resulting from operations for any new grants using the grant date fair value of the shares and units granted, expensed over the vesting period of the underlying stock.

Regulatory Capital

The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the bank regulators about components, risk weightings, and other factors.

FDIC-insured banks, including the Bank, are subject to certain federal laws, which impose various legal limitations on the extent to which banks may finance or otherwise supply funds to certain of their affiliates. In particular, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions with, such as certain purchases of assets, the Company or its affiliates.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (presented in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, a level which could affect the Bank's ability to pay dividends to the Company, and that an adequate allowance for credit losses be maintained. As of June 30, 2026 and December 31, 2025, the Bank’s Tier 1 leverage ratio was considered well-capitalized. The Bank had excess Tier 1 leverage capital of $51.4 million over the 15% minimum required, which was $402.3 million based on our total assets as of June 30, 2026. The Bank’s capital amounts and ratios and the regulatory minimum ratios are presented in the following table.

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Adequately Capitalized

 

 

Well-
Capitalized

 

 

June 30, 2026

 

 

December 31, 2025

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

354,278

 

 

$

356,038

 

Tier 1 capital

 

 

 

 

 

 

 

 

453,707

 

 

 

455,467

 

Total capital

 

 

 

 

 

 

 

 

488,441

 

 

 

487,292

 

Average assets

 

 

 

 

 

 

 

 

2,682,074

 

 

 

2,558,754

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,701,087

 

 

 

2,472,328

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.9

%

 

 

17.8

%

Common equity tier 1 capital ratio (2)

 

 

4.5

 

 

 

6.5

 

 

 

13.1

 

 

 

14.4

 

Tier 1 capital ratio (3)

 

 

6.0

 

 

 

8.0

 

 

 

16.8

 

 

 

18.4

 

Total capital ratio (3)

 

 

8.0

 

 

 

10.0

 

 

 

18.1

 

 

 

19.7

 
(1)
Calculated by dividing Tier 1 capital by average assets.
(2)
Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets.
(3)
Calculated by dividing Tier 1 or total capital by risk-weighted assets.

In the above table, the minimum risk-based ratios as of June 30, 2026 and December 31, 2025 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both June 30, 2026 and December 31, 2025.

Recently Issued Accounting Standards

In November 2024, the FASB issued ASU 2024-03, Income Statement, Reporting Comprehensive Income - Expense Disaggregation of Income Statement Expenses. This update requires additional disaggregation of specific types of expenses within the notes to consolidated financial statements on an annual and interim basis. In January 2025, the FASB issued ASU 2025-01 to clarify that all public business entities are required to adopt ASU 2024-03 for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is assessing the impact of the update on the accompanying financial statements.

Reclassifications

Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations.
v3.26.1
Investment Securities
 6 Months Ended
Jun. 30, 2026
Schedule of Investments [Abstract]  
Investment Securities

(3) INVESTMENT SECURITIES

The following tables present details of fixed maturity securities available for sale as of June 30, 2026 and December 31, 2025.

June 30, 2026
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of U.S. federal agencies

 

$

53,604

 

 

$

37

 

 

$

(3,711

)

 

$

49,930

 

State and municipalities

 

 

21,319

 

 

 

12

 

 

 

(1,453

)

 

 

19,878

 

Agency bonds

 

 

135

 

 

 

—

 

 

 

(10

)

 

 

125

 

Total

 

$

75,058

 

 

$

49

 

 

$

(5,174

)

 

$

69,933

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of U.S. federal agencies

 

$

45,392

 

 

$

160

 

 

$

(3,381

)

 

$

42,171

 

State and municipalities

 

 

19,117

 

 

 

14

 

 

 

(1,251

)

 

 

17,880

 

Agency bonds

 

 

139

 

 

 

—

 

 

 

(7

)

 

 

132

 

Total

 

$

64,648

 

 

$

174

 

 

$

(4,639

)

 

$

60,183

 

The amortized cost and estimated fair market value of investment securities at June 30, 2026 by contractual maturity are presented below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage‑backed securities are included in the table based on their contractual maturities and are reflected in each category below.

June 30, 2026
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

2,354

 

 

$

2,348

 

Due after one year through five years

 

 

10,543

 

 

 

9,962

 

Due after five years through ten years

 

 

9,476

 

 

 

9,189

 

Due after ten years

 

 

52,685

 

 

 

48,434

 

Total

 

$

75,058

 

 

$

69,933

 

The following tables present information pertaining to securities with gross unrealized losses as of June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

June 30, 2026
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities

 

$

(256

)

 

$

9,382

 

 

$

(3,455

)

 

$

28,918

 

State and municipalities

 

 

(39

)

 

 

2,904

 

 

 

(1,414

)

 

 

13,958

 

Agency bonds

 

 

—

 

 

 

—

 

 

 

(10

)

 

 

125

 

Total

 

$

(295

)

 

$

12,286

 

 

$

(4,879

)

 

$

43,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2025
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities

 

$

(13

)

 

$

3,420

 

 

$

(3,368

)

 

$

26,541

 

State and municipalities

 

 

(3

)

 

 

22

 

 

 

(1,248

)

 

 

14,840

 

Agency bonds

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

132

 

Total

 

$

(16

)

 

$

3,442

 

 

$

(4,623

)

 

$

41,513

 

 

As of June 30, 2026 and December 31, 2025, the Company had 57 and 52 securities with unrealized losses that had not been recognized in income. The investments are mortgage-backed securities and similar instruments with conservative risk characteristics, all of which are directly or indirectly guaranteed by the U.S. Government. The municipal bond portfolio consists of bonds purchased from the Utah Housing Corporation, which primarily acquires FHA‑insured loans within the state of Utah. The Company regularly reviews investment securities for impairment resulting from credit loss using both qualitative and quantitative criteria, as necessary based on the composition of the portfolio at period end. Based on the Company's assessment, no material impairments for credit losses were recognized during the period. The Company does not intend to sell its investment securities that are in an unrealized loss position and believes that it is unlikely that it will be required to sell these securities before recovery of the amortized cost. As of June 30, 2026 and December 31, 2025, the Company did not hold investments in any single issuer with an aggregate book value that exceeded 10% of the Company's equity, other than U.S. Government agency residential mortgage-backed securities issued by the Federal National Mortgage Association.

v3.26.1
Loans and Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2026
Text Block [Abstract]  
Loans and Allowance for Credit Losses

(4) LOANS AND ALLOWANCE FOR CREDIT LOSSES

The following table presents the major classification of loans, inclusive of capitalized loan origination costs, as of June 30, 2026 and December 31, 2025.

 

 

June 30, 2026

 

 

December 31, 2025

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Total Loans (1)

 

 

Amount

 

 

As a
Percent of
Total Loans (1)

 

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

1,760,297

 

 

 

63

%

 

$

1,617,221

 

 

 

63

%

Home improvement

 

 

885,599

 

 

 

32

 

 

 

810,237

 

 

 

32

 

Commercial

 

 

126,177

 

 

 

5

 

 

 

123,068

 

 

 

5

 

Taxi medallion

 

 

1,293

 

 

*

 

 

 

1,179

 

 

*

 

Total loans

 

 

2,773,366

 

 

 

99

 

 

 

2,551,705

 

 

 

99

 

Loans held for sale, at lower of amortized cost or fair value:

 

 

 

 

 

 

 

 

 

 

 

 

Strategic partnership

 

 

21,376

 

 

*

 

 

 

15,144

 

 

*

 

Total loans held for sale, at lower of amortized cost or fair value

 

 

21,376

 

 

*

 

 

 

15,144

 

 

*

 

Total loans and loans held for sale

 

$

2,794,742

 

 

 

100

%

 

$

2,566,849

 

 

 

100

%

(1) Percentage may not foot due to rounding.

(*) Less than 1%.

The following tables present the activity of the gross loans and loans held for sale for the three and six months ended June 30, 2026.

Three Months Ended June 30, 2026
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – March 31, 2026

 

$

1,671,538

 

 

$

814,933

 

 

$

119,612

 

 

$

1,126

 

 

$

10,786

 

 

$

2,617,995

 

Loan originations

 

 

228,469

 

 

 

128,640

 

 

 

7,134

 

 

 

266

 

 

 

247,098

 

 

 

611,607

 

Principal receipts, sales, and maturities

 

 

(121,312

)

 

 

(55,571

)

 

 

(651

)

 

 

(99

)

 

 

(236,508

)

 

 

(414,141

)

Charge-offs

 

 

(18,505

)

 

 

(4,165

)

 

 

(74

)

 

 

—

 

 

 

—

 

 

 

(22,744

)

Transfer to loan collateral in process of foreclosure, net

 

 

(3,609

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,609

)

Amortization of origination fees and costs, net

 

 

(4,185

)

 

 

514

 

 

 

12

 

 

 

—

 

 

 

—

 

 

 

(3,659

)

Origination fees and costs, net

 

 

7,901

 

 

 

1,248

 

 

 

(143

)

 

 

—

 

 

 

—

 

 

 

9,006

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

287

 

 

 

—

 

 

 

—

 

 

 

287

 

Gross loans – June 30, 2026

 

$

1,760,297

 

 

$

885,599

 

 

$

126,177

 

 

$

1,293

 

 

$

21,376

 

 

$

2,794,742

 

 

Six Months Ended June 30, 2026
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2025

 

$

1,617,221

 

 

$

810,237

 

 

$

123,068

 

 

$

1,179

 

 

$

15,144

 

 

$

2,566,849

 

Loan originations

 

 

371,017

 

 

 

193,042

 

 

 

7,134

 

 

 

266

 

 

 

417,082

 

 

 

988,541

 

Principal receipts, sales, and maturities

 

 

(186,194

)

 

 

(111,664

)

 

 

(4,418

)

 

 

(114

)

 

 

(410,850

)

 

 

(713,240

)

Charge-offs

 

 

(40,996

)

 

 

(8,516

)

 

 

(74

)

 

 

(38

)

 

 

—

 

 

 

(49,624

)

Transfer to loan collateral in process of foreclosure, net

 

 

(6,036

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,036

)

Amortization of origination fees and costs, net

 

 

(7,935

)

 

 

1,251

 

 

 

20

 

 

 

—

 

 

 

—

 

 

 

(6,664

)

Origination fees and costs, net

 

 

13,220

 

 

 

1,249

 

 

 

(143

)

 

 

—

 

 

 

—

 

 

 

14,326

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

590

 

 

 

—

 

 

 

—

 

 

 

590

 

Gross loans – June 30, 2026

 

$

1,760,297

 

 

$

885,599

 

 

$

126,177

 

 

$

1,293

 

 

$

21,376

 

 

$

2,794,742

 

 

The following tables present the activity of the gross loans and loans held for sale for the three and six months ended June 30, 2025.

Three Months Ended June 30, 2025
(Dollars in thousands)

 

Recreation (1)

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – March 31, 2025

 

$

1,545,844

 

 

$

812,381

 

 

$

116,059

 

 

$

1,650

 

 

$

10,499

 

 

$

2,486,433

 

Loan originations

 

 

142,789

 

 

 

54,253

 

 

 

9,368

 

 

 

—

 

 

 

168,637

 

 

 

375,047

 

Principal receipts, sales, and maturities

 

 

(123,204

)

 

 

(58,380

)

 

 

(4,259

)

 

 

(86

)

 

 

(166,851

)

 

 

(352,780

)

Charge-offs

 

 

(16,273

)

 

 

(4,951

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(21,224

)

Transfer to loan collateral in process of foreclosure, net

 

 

(3,457

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,457

)

Amortization of origination fees and costs, net

 

 

(3,746

)

 

 

1,156

 

 

 

11

 

 

 

—

 

 

 

—

 

 

 

(2,579

)

Origination fees and costs, net

 

 

4,299

 

 

 

(924

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,375

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

236

 

 

 

—

 

 

 

—

 

 

 

236

 

Gross loans – June 30, 2025

 

$

1,546,252

 

 

$

803,535

 

 

$

121,415

 

 

$

1,564

 

 

$

12,285

 

 

$

2,485,051

 
(1)
Includes loans held for sale and loans held for investment.

Six Months Ended June 30, 2025
(Dollars in thousands)

 

Recreation (1)

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2024

 

$

1,543,243

 

 

$

827,211

 

 

$

111,273

 

 

$

1,909

 

 

$

7,386

 

 

$

2,491,022

 

Loan originations

 

 

229,622

 

 

 

103,049

 

 

 

19,075

 

 

 

72

 

 

 

304,877

 

 

 

656,695

 

Principal receipts, sales, and maturities

 

 

(184,711

)

 

 

(117,991

)

 

 

(9,311

)

 

 

(402

)

 

 

(299,978

)

 

 

(612,393

)

Charge-offs

 

 

(36,547

)

 

 

(9,178

)

 

 

(130

)

 

 

(15

)

 

 

—

 

 

 

(45,870

)

Transfer to loan collateral in process of foreclosure, net

 

 

(5,846

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5,846

)

Amortization of origination fees and costs, net

 

 

(7,227

)

 

 

2,289

 

 

 

23

 

 

 

—

 

 

 

—

 

 

 

(4,915

)

Origination fees and costs, net

 

 

7,718

 

 

 

(1,845

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,873

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

485

 

 

 

—

 

 

 

—

 

 

 

485

 

Gross loans – June 30, 2025

 

$

1,546,252

 

 

$

803,535

 

 

$

121,415

 

 

$

1,564

 

 

$

12,285

 

 

$

2,485,051

 
(1)
Includes loans held for sale and loans held for investment.

The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2026.

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion (1)

 

 

Total

 

Balance at December 31, 2025

 

$

85,956

 

 

$

19,563

 

 

$

9,052

 

 

$

218

 

 

$

114,789

 

Charge-offs

 

 

(22,491

)

 

 

(4,351

)

 

 

—

 

 

 

(38

)

 

 

(26,880

)

Recoveries

 

 

4,820

 

 

 

1,465

 

 

 

5

 

 

 

21

 

 

 

6,311

 

Provision (benefit) for credit losses

 

 

18,445

 

 

 

3,618

 

 

 

459

 

 

 

(46

)

 

 

22,476

 

Balance at March 31, 2026

 

 

86,730

 

 

 

20,295

 

 

 

9,516

 

 

 

155

 

 

 

116,696

 

Charge-offs

 

 

(18,505

)

 

 

(4,165

)

 

 

(74

)

 

 

—

 

 

 

(22,744

)

Recoveries

 

 

5,158

 

 

 

1,276

 

 

 

—

 

 

 

42

 

 

 

6,476

 

Provision (benefit) for credit losses

 

 

17,501

 

 

 

4,066

 

 

 

774

 

 

 

(68

)

 

 

22,273

 

Balance at June 30, 2026

 

$

90,884

 

 

$

21,472

 

 

$

10,216

 

 

$

129

 

 

$

122,701

 
(1)
As of June 30, 2026, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $168.1 million, including $103.8 million related to loans secured by New York taxi medallions, some of which may represent recovery opportunities for the Company.

The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2025.

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion (1)

 

 

Total

 

Balance at December 31, 2024

 

$

71,102

 

 

$

20,536

 

 

$

5,190

 

 

$

540

 

 

$

97,368

 

Charge-offs

 

 

(20,274

)

 

 

(4,227

)

 

 

(130

)

 

 

(15

)

 

 

(24,646

)

Recoveries

 

 

3,860

 

 

 

1,095

 

 

 

—

 

 

 

675

 

 

 

5,630

 

Provision (benefit) for credit losses

 

 

16,870

 

 

 

2,845

 

 

 

3,114

 

 

 

(815

)

 

 

22,014

 

Balance at March 31, 2025

 

 

71,558

 

 

 

20,249

 

 

 

8,174

 

 

 

385

 

 

 

100,366

 

Charge-offs

 

 

(16,273

)

 

 

(4,951

)

 

 

—

 

 

 

—

 

 

 

(21,224

)

Recoveries

 

 

4,419

 

 

 

1,190

 

 

 

10

 

 

 

573

 

 

 

6,192

 

Provision (benefit) for credit losses

 

 

15,336

 

 

 

3,934

 

 

 

2,912

 

 

 

(620

)

 

 

21,562

 

Balance at June 30, 2025

 

$

75,040

 

 

$

20,422

 

 

$

11,096

 

 

$

338

 

 

$

106,896

 
(1)
As of June 30, 2025 cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $161.5 million, including $95.2 million related to loans secured by New York taxi medallions, some of which may represent recovery opportunities for the Company.

The following tables present the gross charge-offs for the three and six months ended June 30, 2026, by the year of origination.

Three Months Ended June 30, 2026
(Dollars in thousands)

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior

 

 

Total

 

Recreation

 

$

112

 

 

$

3,570

 

 

$

3,872

 

 

$

3,651

 

 

$

3,185

 

 

$

4,115

 

 

$

18,505

 

Home improvement

 

 

97

 

 

 

400

 

 

 

808

 

 

 

1,265

 

 

 

839

 

 

 

756

 

 

 

4,165

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

209

 

 

$

3,970

 

 

$

4,680

 

 

$

4,916

 

 

$

4,024

 

 

$

4,945

 

 

$

22,744

 

 

Six Months Ended June 30, 2026
(Dollars in thousands)

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior

 

 

Total

 

Recreation

 

$

112

 

 

$

7,255

 

 

$

9,489

 

 

$

8,152

 

 

$

7,159

 

 

$

8,829

 

 

$

40,996

 

Home improvement

 

 

97

 

 

 

799

 

 

 

1,724

 

 

 

2,593

 

 

 

1,791

 

 

 

1,512

 

 

 

8,516

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

38

 

 

 

38

 

Total

 

$

209

 

 

$

8,054

 

 

$

11,213

 

 

$

10,745

 

 

$

8,950

 

 

$

10,453

 

 

$

49,624

 

The following tables present the gross charge-offs for the three and six months ended June 30, 2025, by the year of origination.

Three Months Ended June 30, 2025
(Dollars in thousands)

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Total

 

Recreation

 

$

11

 

 

$

3,812

 

 

$

3,917

 

 

$

4,439

 

 

$

2,106

 

 

$

1,988

 

 

$

16,273

 

Home improvement

 

 

—

 

 

 

1,125

 

 

 

1,703

 

 

 

1,061

 

 

 

643

 

 

 

419

 

 

 

4,951

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

11

 

 

$

4,937

 

 

$

5,620

 

 

$

5,500

 

 

$

2,749

 

 

$

2,407

 

 

$

21,224

 

 

Six Months Ended June 30, 2025
(Dollars in thousands)

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Total

 

Recreation

 

$

11

 

 

$

6,540

 

 

$

7,624

 

 

$

8,945

 

 

$

4,039

 

 

$

9,388

 

 

$

36,547

 

Home improvement

 

 

—

 

 

 

1,948

 

 

 

3,206

 

 

 

2,194

 

 

 

1,071

 

 

 

759

 

 

 

9,178

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

130

 

 

 

—

 

 

 

—

 

 

 

130

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15

 

 

 

15

 

Total

 

$

11

 

 

$

8,488

 

 

$

10,830

 

 

$

11,269

 

 

$

5,110

 

 

$

10,162

 

 

$

45,870

 

The following table presents the allowance for credit losses by type as of June 30, 2026.

June 30, 2026
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category (2)

 

Recreation

 

$

90,884

 

 

 

74

%

 

 

5.16

%

Home improvement

 

 

21,472

 

 

 

17

 

 

 

2.42

 

Commercial

 

 

10,216

 

 

 

8

 

 

 

8.10

 

Taxi medallion

 

 

129

 

 

*

 

 

 

9.98

 

Total (1)

 

$

122,701

 

 

 

100

%

 

 

 
(1)
Does not include loans held for sale which are carried at the lower of amortized cost or fair value for which an allowance for credit loss is not established.
(2)
As of June 30, 2026, total allowance for credit losses as a percent of nonaccrual loans was 284%.

(*) Less than 0.1%.

The following table presents the allowance for credit losses by type as of December 31, 2025.

December 31, 2025
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category (2)

 

Recreation

 

$

85,956

 

 

 

75

%

 

 

5.32

%

Home improvement

 

 

19,563

 

 

 

17

 

 

 

2.41

 

Commercial

 

 

9,052

 

 

 

8

 

 

 

7.36

 

Taxi medallion

 

 

218

 

 

*

 

 

 

18.49

 

Total (1)

 

$

114,789

 

 

 

100

%

 

 

 
(1)
Does not include loans held for sale which are carried at the lower of amortized cost or fair value for which an allowance for credit loss is not established.
(2)
As of December 31, 2025, total allowance for credit losses as a percent of nonaccrual loans was 281%.

(*) Less than 0.1%.

The following table presents the performance status of loans as of June 30, 2026.

June 30, 2026
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,749,780

 

 

$

10,517

 

 

$

1,760,297

 

 

 

0.60

%

Home improvement

 

 

884,099

 

 

 

1,500

 

 

 

885,599

 

 

 

0.17

 

Commercial

 

 

96,276

 

 

 

29,901

 

 

 

126,177

 

 

 

23.70

 

Taxi medallion

 

 

—

 

 

 

1,293

 

 

 

1,293

 

 

 

100.00

 

Strategic partnership

 

 

21,376

 

 

 

—

 

 

 

21,376

 

 

 

—

 

Total

 

$

2,751,531

 

 

$

43,211

 

 

$

2,794,742

 

 

 

1.55

%

The following table presents the performance status of loans as of December 31, 2025.

December 31, 2025
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,603,542

 

 

$

13,679

 

 

$

1,617,221

 

 

 

0.85

%

Home improvement

 

 

808,943

 

 

 

1,294

 

 

 

810,237

 

 

 

0.16

 

Commercial

 

 

98,380

 

 

 

24,688

 

 

 

123,068

 

 

 

20.06

 

Taxi medallion

 

 

—

 

 

 

1,179

 

 

 

1,179

 

 

 

100.00

 

Strategic partnership

 

 

15,144

 

 

 

—

 

 

 

15,144

 

 

 

—

 

Total

 

$

2,526,009

 

 

$

40,840

 

 

$

2,566,849

 

 

 

1.59

%

For those loans aged under 90 days past due, there is a possibility that their delinquency status will continue to deteriorate and they will subsequently be placed on nonaccrual status and be reserved for, and as a result, deemed nonperforming.

The following table presents the aging of loans as of June 30, 2026.

June 30, 2026

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

47,652

 

 

$

21,061

 

 

$

9,726

 

 

$

78,439

 

 

$

1,621,452

 

 

$

1,699,891

 

 

$

—

 

Home improvement

 

 

5,296

 

 

 

2,438

 

 

 

1,499

 

 

 

9,233

 

 

 

876,814

 

 

 

886,047

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

13,035

 

 

 

13,035

 

 

 

113,412

 

 

 

126,447

 

 

 

—

 

Taxi medallion

 

 

78

 

 

 

—

 

 

 

120

 

 

 

198

 

 

 

1,095

 

 

 

1,293

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

21,376

 

 

 

21,376

 

 

 

—

 

Total

 

$

53,026

 

 

$

23,499

 

 

$

24,380

 

 

$

100,905

 

 

$

2,634,149

 

 

$

2,735,054

 

 

$

—

 
(1)
Excludes $59.7 million of capitalized loan origination costs and fees.

The following table presents the aging of loans as of December 31, 2025.

December 31, 2025

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

56,911

 

 

$

22,890

 

 

$

12,856

 

 

$

92,657

 

 

$

1,469,444

 

 

$

1,562,101

 

 

$

—

 

Home improvement

 

 

4,891

 

 

 

2,367

 

 

 

1,300

 

 

 

8,558

 

 

 

804,627

 

 

 

813,185

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

10,274

 

 

 

10,274

 

 

 

112,942

 

 

 

123,216

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

41

 

 

 

41

 

 

 

1,138

 

 

 

1,179

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,144

 

 

 

15,144

 

 

 

—

 

Total

 

$

61,802

 

 

$

25,257

 

 

$

24,471

 

 

$

111,530

 

 

$

2,403,295

 

 

$

2,514,825

 

 

$

—

 
(1)
Excludes $52.0 million of capitalized loan origination costs.

The following table presents loan delinquency for recreation and home improvement loans as of June 30, 2026, by the year of origination:

(Dollars in thousands)

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior

 

 

Total (1)

 

 Recreation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Current

 

$

354,614

 

 

$

384,820

 

 

$

258,354

 

 

$

211,789

 

 

$

185,249

 

 

$

226,626

 

 

$

1,621,452

 

 30-59 Days

 

 

1,262

 

 

 

9,668

 

 

 

9,159

 

 

 

8,646

 

 

 

8,224

 

 

 

10,693

 

 

 

47,652

 

 60-89 Days

 

 

741

 

 

 

4,744

 

 

 

4,130

 

 

 

3,398

 

 

 

3,285

 

 

 

4,763

 

 

 

21,061

 

 90 + Days

 

 

156

 

 

 

2,083

 

 

 

2,293

 

 

 

1,998

 

 

 

1,450

 

 

 

1,746

 

 

 

9,726

 

 Total Recreation

 

$

356,773

 

 

$

401,315

 

 

$

273,936

 

 

$

225,831

 

 

$

198,208

 

 

$

243,828

 

 

$

1,699,891

 

 Home improvement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Current

 

$

182,684

 

 

$

160,187

 

 

$

147,903

 

 

$

134,042

 

 

$

134,755

 

 

$

117,243

 

 

$

876,814

 

 30-59 Days

 

 

142

 

 

 

906

 

 

 

665

 

 

 

1,431

 

 

 

1,425

 

 

 

727

 

 

 

5,296

 

 60-89 Days

 

 

46

 

 

 

471

 

 

 

437

 

 

 

550

 

 

 

619

 

 

 

315

 

 

 

2,438

 

 90 + Days

 

 

79

 

 

 

156

 

 

 

173

 

 

 

468

 

 

 

416

 

 

 

207

 

 

 

1,499

 

 Total Home improvement

 

$

182,951

 

 

$

161,720

 

 

$

149,178

 

 

$

136,491

 

 

$

137,215

 

 

$

118,492

 

 

$

886,047

 
(1)
Excludes $60.4 million of capitalized recreation loan origination costs and $0.4 million of net deferred home improvement loan origination fees.

The following table presents loan delinquency for recreation and home improvement loans as of December 31, 2025, by the year of origination:

(Dollars in thousands)

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Total (1)

 

 Recreation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Current

 

$

423,427

 

 

$

335,079

 

 

$

237,917

 

 

$

209,204

 

 

$

132,704

 

 

$

131,113

 

 

$

1,469,444

 

 30-59 Days

 

 

8,210

 

 

 

12,763

 

 

 

11,042

 

 

 

10,623

 

 

 

6,061

 

 

 

8,212

 

 

 

56,911

 

 60-89 Days

 

 

2,374

 

 

 

5,414

 

 

 

4,918

 

 

 

4,872

 

 

 

2,581

 

 

 

2,731

 

 

 

22,890

 

 90 + Days

 

 

1,487

 

 

 

3,136

 

 

 

2,803

 

 

 

2,329

 

 

 

1,347

 

 

 

1,754

 

 

 

12,856

 

 Total Recreation

 

$

435,498

 

 

$

356,392

 

 

$

256,680

 

 

$

227,028

 

 

$

142,693

 

 

$

143,810

 

 

$

1,562,101

 

 Home improvement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Current

 

$

193,964

 

 

$

172,735

 

 

$

151,637

 

 

$

151,365

 

 

$

71,812

 

 

$

63,114

 

 

$

804,627

 

 30-59 Days

 

 

535

 

 

 

980

 

 

 

1,609

 

 

 

876

 

 

 

513

 

 

 

378

 

 

 

4,891

 

 60-89 Days

 

 

353

 

 

 

761

 

 

 

441

 

 

 

455

 

 

 

199

 

 

 

158

 

 

 

2,367

 

 90 + Days

 

 

—

 

 

 

410

 

 

 

417

 

 

 

331

 

 

 

42

 

 

 

100

 

 

 

1,300

 

 Total Home improvement

 

$

194,852

 

 

$

174,886

 

 

$

154,104

 

 

$

153,027

 

 

$

72,566

 

 

$

63,750

 

 

$

813,185

 
(1)
Excludes $55.1 million of capitalized recreation loan origination costs and $2.9 million of net deferred home improvement loan origination fees.
v3.26.1
Funds Borrowed
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Funds Borrowed

(5) FUNDS BORROWED

The following table presents outstanding balances of funds borrowed.

 

Payments Due for the Twelve Months Ending June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2027

 

 

2028

 

 

2029

 

 

2030

 

 

2031

 

 

Thereafter

 

 

June 30, 2026 (1)

 

 

December 31, 2025 (1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

813,106

 

 

$

543,130

 

 

$

439,846

 

 

$

257,482

 

 

$

238,824

 

 

$

—

 

 

$

2,292,388

 

 

$

2,083,335

 

 

 

3.89

%

Privately placed notes

 

 

—

 

 

 

53,750

 

 

 

39,000

 

 

 

—

 

 

 

75,000

 

 

 

22,500

 

 

 

190,250

 

 

 

146,500

 

 

 

8.31

 

SBA debentures and borrowings

 

 

4,500

 

 

 

—

 

 

 

2,500

 

 

 

—

 

 

 

3,000

 

 

 

63,500

 

 

 

73,500

 

 

 

85,000

 

 

 

4.11

 

Trust preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

6.04

 

Federal reserve and other borrowings

 

 

50,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

50,000

 

 

 

50,000

 

 

 

3.75

 

Strategic partner collateral deposits

 

 

7,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,000

 

 

 

6,081

 

 

 

3.64

 

Total

 

$

874,606

 

 

$

596,880

 

 

$

481,346

 

 

$

257,482

 

 

$

316,824

 

 

$

119,000

 

 

$

2,646,138

 

 

$

2,403,916

 

 

 

4.25

%
(1)
Excludes deferred financing costs of $10.2 million and $8.4 million as of June 30, 2026 and December 31, 2025.
(2)
Weighted average contractual rate as of June 30, 2026.
(3)
Balance includes $29.7 million and $3.7 million in retail savings deposit balances as of June 30, 2026 and December 31, 2025.

(A) DEPOSITS

Most deposits are raised through the use of investment brokerage firms that package time deposits in denominations of less than $250,000 qualifying for FDIC insurance into larger pools that are sold to the Bank. While brokered time deposits are sourced in amounts in excess of $250,000, all underlying deposits are in denominations of $250,000 or less. The rates paid on the deposits are highly competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, the annual expense of which averages less than 0.15%. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. Additionally, the Bank raises deposits through listing services and, as of June 30, 2026 and December 31, 2025, the Bank had $27.7 million and $17.2 million in listing service deposit balances from other financial institutions. As of June 30, 2026 and December 31, 2025, the Bank had $29.7 million and $3.7 million in retail savings deposit balances. The following table presents the maturity of the deposit pools, which includes strategic partner reserve deposits, as of June 30, 2026.

(Dollars in thousands)

 

June 30, 2026

 

Three months or less

 

$

227,463

 

Over three months through six months

 

 

149,329

 

Over six months through one year

 

 

436,314

 

Over one year

 

 

1,479,282

 

Deposits

 

 

2,292,388

 

Strategic partner collateral deposits

 

 

7,000

 

Total deposits

 

$

2,299,388

 

(B) FEDERAL RESERVE DISCOUNT WINDOW AND OTHER BORROWINGS

As of June 30, 2026, the Bank had $2.4 billion of consumer loans pledged as collateral for a discount window line of credit established at the Federal Reserve. The current advance rate on the pledged loans is approximately 55% of book value, for a total of approximately $1.3 billion in secured borrowing capacity, of which $50.0 million was utilized as of June 30, 2026. The discount window facility is not committed, and any borrowings by the Bank from the discount window facility are at the discretion of the Federal Reserve. The weighted average interest rate on funds borrowed from the discount window was 3.75% as of June 30, 2026.

The Bank has borrowing arrangements with correspondent banks. These agreements are accommodations that can be terminated at any time, for any reason and allow the Bank to borrow up to $75.0 million. As of June 30, 2026, there was no outstanding amount with respect to these arrangements.

(C) PRIVATELY PLACED NOTES

The Company has entered into various private placements with certain institutional investors over time. The following table presents the private placement notes outstanding as of June 30, 2026 and December 31, 2025.

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Date of Notes

 

Maturity

 

Interest Rate

 

 

Interest Payable

 

June 30, 2026

 

 

December 31, 2025

 

December 2020

 

December 2027

 

 

7.500

%

 

Semi-annually

 

$

53,750

 

 

$

53,750

 

February 2021

 

February 2026

 

 

7.250

%

 

Semi-annually

 

 

—

 

 

 

31,250

 

September 2023

 

September 2028

 

 

9.250

%

 

Semi-annually

 

 

39,000

 

 

 

39,000

 

June 2024

 

June 2039

 

 

8.875

%

 

Semi-annually

 

 

17,500

 

 

 

17,500

 

August 2024

 

August 2039

 

 

8.625

%

 

Semi-annually

 

 

5,000

 

 

 

5,000

 

April 2026

 

May 2031

 

 

8.250

%

 

Semi-annually

 

 

75,000

 

 

 

—

 

 

 

 

 

 

 

 

 

 

$

190,250

 

 

$

146,500

 

 

(D) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for Medallion Capital, typically for a four and a half year term and a 1% fee. On February 28, 2024, Medallion Capital accepted a commitment from the SBA for $18.5 million in debenture financing, all of which had been utilized during 2025. The Company does not currently have any commitments available from the SBA.

In 2025, the SBA informed Medallion Capital that it needs to have Medallion Capital’s management team reviewed through the SBA’s licensing division; until successful completion of that review, Medallion Capital was not deemed by the SBA to have a qualified management team. Medallion Capital submitted a management team for review through the SBA’s licensing division on March 31, 2026 and on the same day, the SBA notified Medallion Capital that it has declared an event of default with respect to outstanding debentures and directed Medallion Capital, within 120 days, to identify and submit at least one qualified candidate for consideration as a full-time principal and investment committee member of Medallion Capital. In April 2026, Medallion Capital submitted two candidates to the SBA for its consideration. On June 3, 2026, the SBA notified Medallion Capital that Medallion Capital’s submission of two candidates cures the previously disclosed event of default, subject to the satisfactory completion of the candidates’ background checks. On June 11, 2026, the SBA notified Medallion Capital that there was a satisfactory completion of such background checks, which cured the previously disclosed event of default with respect to its outstanding SBA debentures. The SBA’s notice and event of default did not trigger any cross-default clauses in any of the Company's debt arrangements. Medallion Capital is awaiting confirmation from the SBA that it deems the management team qualified for purposes of obtaining new and future commitments for debenture financing.

The following table presents the SBA debentures and borrowings as of June 30, 2026 and December 31, 2025.

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Date of Notes

 

Maturity

 

Interest Rate

 

 

Interest Payable

 

June 30, 2026

 

 

December 31, 2025

 

March 2016

 

March 2026

 

 

3.25

%

 

Semi-annually

 

$

—

 

 

$

1,500

 

March 2016

 

March 2026

 

 

3.18

%

 

Semi-annually

 

 

—

 

 

 

10,000

 

May 2016

 

September 2026

 

 

2.72

%

 

Semi-annually

 

 

2,500

 

 

 

2,500

 

March 2017

 

March 2027

 

 

3.52

%

 

Semi-annually

 

 

2,000

 

 

 

2,000

 

September 2018

 

September 2028

 

 

4.22

%

 

Semi-annually

 

 

1,250

 

 

 

1,250

 

March 2019

 

March 2029

 

 

3.79

%

 

Semi-annually

 

 

1,250

 

 

 

1,250

 

September 2020

 

September 2030

 

 

1.71

%

 

Semi-annually

 

 

3,000

 

 

 

3,000

 

June 2021

 

September 2031

 

 

1.58

%

 

Semi-annually

 

 

8,500

 

 

 

8,500

 

October 2021

 

March 2032

 

 

3.21

%

 

Semi-annually

 

 

7,000

 

 

 

7,000

 

October 2022

 

March 2033

 

 

5.44

%

 

Semi-annually

 

 

4,750

 

 

 

4,750

 

April 2023

 

September 2033

 

 

5.96

%

 

Semi-annually

 

 

4,750

 

 

 

4,750

 

September 2023

 

March 2034

 

 

5.08

%

 

Semi-annually

 

 

4,750

 

 

 

4,750

 

November 2023

 

March 2034

 

 

5.08

%

 

Semi-annually

 

 

5,000

 

 

 

5,000

 

March 2025

 

September 2035

 

 

4.58

%

 

Semi-annually

 

 

10,250

 

 

 

10,250

 

August 2025

 

September 2035

 

 

4.66

%

 

Semi-annually

 

 

18,500

 

 

 

18,500

 

 

 

 

 

 

 

 

 

 

$

73,500

 

 

$

85,000

 

(E) TRUST PREFERRED SECURITIES

In June 2007, the Company issued and sold $36.1 million aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35.0 million of trust preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. Interest is calculated using the Secured Overnight Financing Rate, or SOFR, adjusted by a relevant spread adjustment of approximately 26 basis points, plus 2.13%. The notes mature in September 2037 and are prepayable at par. Interest is payable quarterly in arrears. The terms of the trust preferred securities and the notes are substantially identical. In December 2007, $2.0 million of the trust preferred securities were repurchased from a third-party investor. As of June 30, 2026, $33.0 million was outstanding on the trust preferred securities.

(F) COVENANT COMPLIANCE

Certain of the Company's debt agreements contain financial covenants that require the Company to maintain certain financial ratios and minimum tangible net worth. As of June 30, 2026, the Company was in compliance with all such covenants.
v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases

(6) LEASES

The Company has leased premises that expire at various dates through November 30, 2033 subject to various operating leases.

The following table presents the operating lease costs and additional information for the three and six months ended June 30, 2026 and 2025.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Operating lease costs

 

$

634

 

 

$

556

 

 

$

1,267

 

 

$

1,176

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

698

 

 

 

683

 

 

 

1,395

 

 

 

1,358

 

Right-of-use asset obtained in exchange for lease liability

 

 

(36

)

 

 

(63

)

 

 

(74

)

 

 

(126

)

The following table presents the breakout of the operating leases as of June 30, 2026 and December 31, 2025.

(Dollars in thousands)

 

June 30, 2026

 

 

December 31, 2025

 

Operating lease right-of-use assets

 

$

4,214

 

 

$

6,896

 

Other current liabilities

 

 

463

 

 

 

2,205

 

Operating lease liabilities

 

 

3,876

 

 

 

5,041

 

Total operating lease liabilities

 

 

4,339

 

 

 

7,246

 

Weighted average remaining lease term

 

7.2 years

 

 

5.8 years

 

Weighted average discount rate

 

 

6.28

%

 

 

5.90

%

At June 30, 2026, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2026

 

$

366

 

2027

 

 

735

 

2028

 

 

756

 

2029

 

 

777

 

2030

 

 

798

 

Thereafter

 

 

2,205

 

Total lease payments (1)

 

 

5,637

 

Less imputed interest

 

 

1,298

 

Total operating lease liabilities

 

$

4,339

 
(1)
Does not include lease obligations commencing after June 30, 2026.
v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

(7) INCOME TAXES

The Company is subject to federal and applicable state corporate income taxes on its taxable ordinary income and capital gains. As a corporation taxed under Subchapter C of the Internal Revenue Code, the Company is able, and intends, to file a consolidated federal income tax return with corporate subsidiaries in which it holds 80% or more of the outstanding equity interest measured by both vote and fair value.

The following table presents the significant components of the Company's deferred tax assets and liabilities as of June 30, 2026 and December 31, 2025.

(Dollars in thousands)

 

June 30, 2026

 

 

December 31, 2025

 

Deferred tax assets:

 

 

 

 

 

 

Provision for credit losses

 

$

18,272

 

 

$

17,700

 

Accrued expenses, compensation, and other assets

 

 

2,575

 

 

 

5,868

 

Net operating loss carryforwards (1)

 

 

2,648

 

 

 

2,648

 

Other investments and investment securities

 

 

2,610

 

 

 

2,553

 

Valuation allowance

 

 

(3,852

)

 

 

(5,957

)

Total deferred tax assets

 

 

22,253

 

 

 

22,812

 

Deferred tax liabilities:

 

 

 

 

 

 

Goodwill and other intangibles

 

 

42,226

 

 

 

42,408

 

Total deferred tax liabilities

 

 

42,226

 

 

 

42,408

 

Deferred tax liability, net

 

$

19,973

 

 

$

19,596

 
(1)
As of June 30, 2026, the Company had an estimated $11.1 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had no net carrying value as of June 30, 2026.

The following table presents the components of the Company's tax provision for the three and six months ended June 30, 2026 and 2025:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

4,175

 

 

$

5,757

 

 

$

6,136

 

 

$

10,418

 

State

 

 

1,659

 

 

 

2,569

 

 

 

2,399

 

 

 

4,091

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(893

)

 

 

(1,709

)

 

 

370

 

 

 

(1,448

)

State

 

 

(224

)

 

 

(812

)

 

 

140

 

 

 

(543

)

Net provision for income taxes

 

$

4,717

 

 

$

5,805

 

 

$

9,045

 

 

$

12,518

 

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three and six months ended June 30, 2026 and 2025.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2026

 

 

2025

 

 

June 30,

 

 

June 30,

 

 

 

Amount

 

 

Percent (1)

 

 

Amount

 

 

Percent (1)

 

 

Amount

 

 

Percent (1)

 

 

Amount

 

 

Percent (1)

 

Statutory Federal income tax provision

 

$

3,044

 

 

 

21

%

 

$

4,089

 

 

 

21

%

 

$

5,484

 

 

 

21

%

 

$

8,339

 

 

 

21

%

State and local income taxes, net of federal income tax benefit

 

 

816

 

 

 

6

 

 

 

889

 

 

 

5

 

 

 

1,726

 

 

 

7

 

 

 

1,812

 

 

 

5

 

Non-deductible expenses (benefits)

 

 

454

 

 

 

3

 

 

 

(562

)

 

 

(3

)

 

 

3,839

 

 

 

15

 

 

 

1,010

 

 

 

3

 

Valuation allowance against deferred tax assets

 

 

281

 

 

 

2

 

 

 

324

 

 

 

2

 

 

 

(2,105

)

 

 

(8

)

 

 

134

 

 

 

0

 

Change in effective state income tax rates and accrual

 

 

—

 

 

 

—

 

 

 

696

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

696

 

 

 

2

 

Other

 

 

122

 

 

 

1

 

 

 

369

 

 

 

2

 

 

 

101

 

 

 

0

 

 

 

527

 

 

 

1

 

Total income tax provision

 

$

4,717

 

 

 

33

%

 

$

5,805

 

 

 

30

%

 

$

9,045

 

 

 

35

%

 

$

12,518

 

 

 

32

%
(1)
Percentage may not foot due to rounding.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. The Company has determined that a valuation allowance is necessary for net operating losses which the Company does not believe will be utilized as well as for deferred compensation in excess of statutory limits. Based upon these considerations, the Company determined the necessary valuation allowance as of June 30, 2026.

The Company has filed tax returns in many states. Federal, Utah, California, New York, Florida, and Texas tax filings of the Company for the tax years 2022 through the present are the more significant filings that are open for examination. For the three months ended June 30, 2026, Utah, California, Florida, New York, and Texas made up 34%, 7%, 6%, 5%, and 3% of the state and local income taxes, net of federal income tax benefit.
v3.26.1
Stock Options and Restricted Stock
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock Options and Restricted Stock

(8) STOCK OPTIONS AND RESTRICTED STOCK

The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 2018 Plan, which was approved by the Company’s stockholders on June 15, 2018. The terms of the 2018 Plan provide for grants of a variety of different type of stock awards to the Company’s employees and non-employee directors, including options, restricted stock, restricted stock units, or RSUs, PSUs, and stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020. On April 26, 2022, the Company’s Board of Directors approved an additional amendment to the 2018 Plan to further increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 14, 2022. On April 25, 2025, the Company’s Board of Directors approved an additional amendment to the 2018 Plan to further increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 12, 2025. A total of 7,710,968 shares of the Company’s common stock are issuable under the 2018 Plan, and 1,551,192 shares remained issuable as of June 30, 2026. Awards under the 2018 Plan are subject to certain limitations as set forth in the 2018 Plan, which will terminate when all shares of common stock authorized for delivery have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2018 Plan, whichever occurs first.

The Company’s Board of Directors approved the 2015 Non-Employee Director Stock Option Plan, or the 2015 Director Plan, on March 12, 2015, which was approved by the Company’s shareholders on June 5, 2015, and on which exemptive relief to implement the 2015 Director Plan was received from the Securities and Exchange Commission, or SEC, on February 29, 2016. A total of 300,000 shares of the Company’s common stock were issuable under the 2015 Director Plan, and 258,334 remained issuable as of June 15, 2018. Effective June 15, 2018, the 2018 Plan was approved, and these remaining shares were rolled into the 2018 Plan. Under the 2015 Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the 2015 Director Plan, the Company granted options to purchase 12,000 shares of the Company’s common stock to a non-employee director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the 2015 Director Plan vested annually, as defined in the 2015 Director Plan. The term of the options could not exceed ten years.

Additional shares are only available for future issuance under the 2018 Plan. As of June 30, 2026, 779,818 options on the Company’s common stock were outstanding under the Company’s plans, all of which have previously vested and are exercisable. Additionally, as of June 30, 2026, there were 593,472 unvested shares of restricted stock, 676,562 unvested PSUs, 89,310 unvested RSUs, and 414,648 vested, unissued RSUs outstanding under the 2018 Plan. As of June 30, 2026, the total remaining unrecognized compensation cost related to unvested restricted stock, RSUs, and PSUs was $8.6 million, which is expected to be recognized over the next 11 quarters. Total stock-based compensation expense was $1.9 million and $4.0 million, or $0.08 and $0.16 per diluted common share, for the three and six months ended June 30, 2026 and $1.7 million and $3.4 million, or $0.07 and $0.14 per diluted common share, for the three and six months ended June 30, 2025.

The fair value of each restricted stock grant, each restricted stock unit, and each performance stock unit is determined on the date of grant by the closing market price of the Company’s common stock on the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. There were no options granted during the six months ended June 30, 2026 and 2025.

The Company’s Compensation Committee of the Board of Directors grants PSUs, to certain officers and employees of the Company. Granted PSUs are subject to specified performance criteria for a particular performance period. The number of PSUs that vest can range from zero to 200% of the grant amount. In addition, dividends that accrue during the vesting period are reinvested in dividend equivalent PSUs. PSUs and the related dividend equivalent PSUs are converted into shares of common stock after vesting. Once the PSUs and dividend equivalent PSUs have vested, shares of common stock are delivered.

The PSUs have vesting conditions based upon certain levels of total pre-tax income as well as return on common equity attained over a three-year period. The PSUs cliff vest after three years based upon the performance of the Company. Dividend equivalent PSUs accumulate and convert to additional shares for the benefit of the grantee at the vesting date or are forfeited if the performance conditions are not met. The following table presents the PSU activity for the six months ended June 30, 2026 and the year ended December 31, 2025.

 

Number of
Shares

 

 

 

Grant Price
Per Share

 

 

Weighted
Average
Grant Price

 

Outstanding at December 31, 2024

 

 

512,131

 

 

$

6.08 - 8.97

 

 

$

7.30

 

Granted

 

 

311,723

 

 

 

 

8.47

 

 

 

8.47

 

Cancelled

 

 

—

 

 

 

 

—

 

 

 

—

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2025

 

 

823,854

 

 

 

6.08 - 8.97

 

 

 

7.74

 

Granted

 

 

216,940

 

 

 

 

10.34

 

 

 

10.34

 

Cancelled

 

 

—

 

 

 

 

—

 

 

 

—

 

Vested (1)

 

 

(296,444

)

 

 

 

6.08

 

 

 

6.08

 

Outstanding at March 31, 2026

 

 

744,350

 

 

 

8.47 - 10.36

 

 

 

9.17

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(67,788

)

 

 

8.47 - 8.97

 

 

 

8.71

 

Vested (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2026

 

 

676,562

 

 

$

8.47 - 10.36

 

 

$

9.21

 
(1)
During the three and six months ended June 30, 2026, 0 and 652,577 shares were used in connection with the vesting and settlement of PSUs.

The following table presents restricted stock activity for the six months ended June 30, 2026 and the year ended December 31, 2025.

 

Number of
Shares

 

 

 

Grant Price
Per Share

 

 

Weighted
Average
Grant Price

 

Outstanding at December 31, 2024

 

 

909,028

 

 

$

4.89 - 10.32

 

 

$

8.30

 

Granted

 

 

332,918

 

 

 

8.47 - 10.57

 

 

 

8.63

 

Cancelled

 

 

(5,373

)

 

 

4.89 - 10.32

 

 

 

9.16

 

Vested (1)

 

 

(484,823

)

 

 

4.89 - 8.97

 

 

 

7.70

 

Outstanding at December 31, 2025

 

 

751,750

 

 

 

8.08 - 10.57

 

 

 

8.83

 

Granted

 

 

344,206

 

 

 

 

10.36

 

 

 

10.36

 

Cancelled

 

 

(1,569

)

 

 

9.37 - 10.32

 

 

 

9.82

 

Vested

 

 

(374,797

)

 

 

8.08 - 9.37

 

 

 

8.67

 

Outstanding at March 31, 2026

 

 

719,590

 

 

 

8.47 - 10.57

 

 

 

9.64

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(33,140

)

 

 

8.47 - 10.57

 

 

 

—

 

Vested (1)

 

 

(92,978

)

 

 

8.47 - 10.36

 

 

 

—

 

Outstanding at June 30, 2026 (2)

 

 

593,472

 

 

$

8.47 - 10.57

 

 

$

8.77

 
(1)
The aggregate fair value of the restricted stock vested, on the date of vesting, was $0.9 million and $4.7 million for the three and six months ended June 30, 2026 and $4.2 million for the year ended December 31, 2025.
(2)
The aggregate fair value of the unvested restricted stock was $6.1 million as of June 30, 2026. The remaining vesting period was 2.7 years at June 30, 2026.

The following table presents stock option activity for the six months ended June 30, 2026 and the year ended December 31, 2025.

 

Number of
Options

 

 

 

Exercise Price
Per Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2024

 

 

913,909

 

 

$

2.14 - 9.38

 

 

$

6.52

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(33,770

)

 

 

4.89 - 9.38

 

 

 

7.37

 

Exercised

 

 

(82,081

)

 

 

4.89 - 7.25

 

 

 

6.29

 

Outstanding at December 31, 2025

 

 

798,058

 

 

 

2.14 - 7.25

 

 

 

6.50

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(607

)

 

 

 

—

 

 

 

5.98

 

Exercised (1)

 

 

(2,224

)

 

 

4.89 - 7.25

 

 

 

5.85

 

Outstanding at March 31, 2026

 

 

795,227

 

 

 

2.14 - 7.25

 

 

 

6.50

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(2,255

)

 

 

4.89 - 7.25

 

 

 

6.52

 

Exercised (1)

 

 

(13,154

)

 

 

4.89 - 7.25

 

 

 

6.68

 

Outstanding at June 30, 2026 (2)

 

 

779,818

 

 

$

2.14 - 7.25

 

 

$

6.50

 

Options exercisable at:

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

798,058

 

 

$

2.14 - 9.38

 

 

$

6.50

 

June 30, 2026 (2)

 

 

779,818

 

 

$

2.14 - 7.25

 

 

$

6.50

 
(1)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three and six months ended June 30, 2026 and $0.3 million for the year ended December 31, 2025.
(2)
The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at June 30, 2026 and the related exercise price of the underlying options, was $2.9 million for outstanding options, all of which had previously vested. The remaining contractual life was 3.7 years for outstanding options at June 30, 2026.

The following table presents activity for the unvested options outstanding under the plans for the six months ended June 30, 2026 and the year ended December 31, 2025.

 

Number of
Options

 

 

 

Exercise Price
Per Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2024

 

 

84,623

 

 

$

4.89 - 6.79

 

 

$

6.37

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(119

)

 

 

 

4.89

 

 

 

4.89

 

Vested (1)

 

 

(84,504

)

 

 

4.89 - 6.79

 

 

 

6.37

 

Outstanding at December 31, 2025

 

 

—

 

 

 

 

—

 

 

 

—

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

—

 

 

 

 

—

 

 

 

—

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at March 31, 2026

 

 

—

 

 

 

 

—

 

 

 

—

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

—

 

 

 

 

—

 

 

 

—

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2026

 

 

—

 

 

$

 

—

 

 

$

—

 
(1)
The intrinsic value of the options vested was $0.1 million for the year ended December 31, 2025.

During the three and six months ended June 30, 2026, the Company granted 89,310 RSUs with a vesting date of June 9, 2027 at a grant price of $9.63 and during the year ended December 31, 2025, the Company granted 86,410 RSUs with a vesting date of June 12, 2026 at a grant price of $9.49. For the RSUs granted in 2026 and 2025, unitholders had the option of deferring settlement until a future date if the recipient makes a formal election under the guidelines of IRC Section 409A. As of June 30, 2026, there were 503,958 RSUs outstanding, including 414,648 which had previously vested.
v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 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, and collector cars make up 53%, 22%, and 13% of the segment portfolio, with no other product lines at or above 10%, as of June 30, 2026. The highest concentrations of recreation loans was in Texas and Florida at 17% and 9% of loans outstanding with no other states at or above 10%, as of June 30, 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 40%, 25%, and 10% of total home improvement loans outstanding, and with no other product lines at or above 10% as of June 30, 2026. The highest concentrations of home improvement loans are in Florida and Texas at 15% and 14% of loans outstanding, with no other states at or above 10%, as of June 30, 2026. The commercial lending segment focuses on serving a wide variety of industries, with concentrations in manufacturing and wholesale trade making up 61% and 14%, of the loans outstanding, with no other product lines at or above 10% as of June 30, 2026. The commercial lending segment invests across the United States with concentrations in California, Wisconsin, and New York having 19%, 14%, and 11% of the segment portfolio, with no other states having a concentration at or above 10%, as of June 30, 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 June 30, 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 June 30, 2026.

Three Months Ended June 30, 2026

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and
Other Investments

 

 

Consolidated

 

Total interest income

 

$

57,101

 

 

$

20,929

 

 

$

3,505

 

 

$

167

 

 

$

2,675

 

 

$

84,377

 

Total interest expense

 

 

15,865

 

 

 

7,273

 

 

 

1,371

 

 

 

29

 

 

 

2,592

 

 

 

27,130

 

Net interest income

 

 

41,236

 

 

 

13,656

 

 

 

2,134

 

 

 

138

 

 

 

83

 

 

 

57,247

 

Provision (benefit) for credit losses

 

 

17,501

 

 

 

4,066

 

 

 

700

 

 

 

(68

)

 

 

74

 

 

 

22,273

 

Net interest income after credit loss provision

 

 

23,735

 

 

 

9,590

 

 

 

1,434

 

 

 

206

 

 

 

9

 

 

 

34,974

 

Other income, net

 

 

1,417

 

 

 

3

 

 

 

237

 

 

 

1,332

 

 

 

1,487

 

 

 

4,476

 

Other expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries

 

 

4,073

 

 

 

2,112

 

 

 

1,066

 

 

 

718

 

 

 

3,278

 

 

 

11,247

 

Loan servicing fees and collection costs

 

 

4,951

 

 

 

1,269

 

 

 

—

 

 

 

30

 

 

 

47

 

 

 

6,297

 

Other costs

 

 

3,264

 

 

 

1,598

 

 

 

748

 

 

 

125

 

 

 

1,674

 

 

 

7,409

 

Total other expenses

 

 

12,288

 

 

 

4,979

 

 

 

1,814

 

 

 

873

 

 

 

4,999

 

 

 

24,953

 

Net income (loss) before taxes

 

 

12,864

 

 

 

4,614

 

 

 

(143

)

 

 

665

 

 

 

(3,503

)

 

 

14,497

 

Income tax (provision) benefit

 

 

(4,187

)

 

 

(1,506

)

 

 

115

 

 

 

(220

)

 

 

1,081

 

 

 

(4,717

)

Net income (loss) after taxes

 

$

8,677

 

 

$

3,108

 

 

$

(28

)

 

$

445

 

 

$

(2,422

)

 

$

9,780

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,335

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

7,445

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, gross (1)

 

$

1,760,297

 

 

$

885,599

 

 

$

126,177

 

 

$

1,293

 

 

$

21,376

 

 

$

2,794,742

 

Total assets

 

 

1,693,668

 

 

 

871,154

 

 

 

117,535

 

 

 

3,535

 

 

 

507,693

 

 

 

3,193,585

 

Total funds borrowed (2)

 

 

1,403,338

 

 

 

721,820

 

 

 

97,387

 

 

 

2,929

 

 

 

420,664

 

 

 

2,646,138

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

2.11

%

 

 

1.49

%

 

 

(0.35

)%

 

NM

 

 

NM

 

 

 

1.28

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

7.31

 

Return on average equity

 

 

12.79

 

 

 

9.04

 

 

 

(2.20

)

 

NM

 

 

NM

 

 

 

7.71

 

Interest yield

 

 

13.45

 

 

 

9.93

 

 

 

11.44

 

 

NM

 

 

NM

 

 

 

11.71

 

Net interest margin, gross

 

 

9.71

 

 

 

6.48

 

 

 

6.97

 

 

NM

 

 

NM

 

 

 

7.94

 

Net interest margin, net of allowance

 

 

10.24

 

 

 

6.64

 

 

 

7.56

 

 

NM

 

 

NM

 

 

 

8.28

 

Reserve coverage (3)

 

 

5.16

 

 

 

2.42

 

 

 

8.10

 

 

NM

 

 

NM

 

 

 

4.42

 

Delinquency status (4)

 

 

0.57

 

 

 

0.17

 

 

 

10.31

 

 

NM

 

 

NM

 

 

 

0.89

 

Charge-off ratio (5)

 

 

3.14

 

 

 

1.37

 

 

 

0.24

 

 

NM

 

 

NM

 

 

 

2.43

 

 

(1)
Inclusive of strategic partnership loans held for sale, at lower of amortized cost or fair value.
(2)
Excludes deferred financing costs of $10.2 million as of June 30, 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 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, 2026.

Six Months Ended June 30, 2026

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and
Other Investments

 

 

Consolidated

 

Total interest income

 

$

111,135

 

 

$

40,305

 

 

$

6,954

 

 

$

226

 

 

$

4,825

 

 

$

163,445

 

Total interest expense

 

 

30,157

 

 

 

14,643

 

 

 

2,763

 

 

 

59

 

 

 

4,517

 

 

 

52,139

 

Net interest income

 

 

80,978

 

 

 

25,662

 

 

 

4,191

 

 

 

167

 

 

 

308

 

 

 

111,306

 

Provision (benefit) for credit losses

 

 

35,946

 

 

 

7,684

 

 

 

1,159

 

 

 

(114

)

 

 

74

 

 

 

44,749

 

Net interest income after credit loss provision

 

 

45,032

 

 

 

17,978

 

 

 

3,032

 

 

 

281

 

 

 

234

 

 

 

66,557

 

Other income, net

 

 

1,443

 

 

 

10

 

 

 

685

 

 

 

2,449

 

 

 

2,297

 

 

 

6,884

 

Other expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries

 

 

8,178

 

 

 

4,464

 

 

 

1,805

 

 

 

1,419

 

 

 

6,381

 

 

 

22,247

 

Loan servicing fees and collection costs

 

 

9,241

 

 

 

2,410

 

 

 

—

 

 

 

58

 

 

 

62

 

 

 

11,771

 

Other costs

 

 

5,947

 

 

 

2,976

 

 

 

1,291

 

 

 

159

 

 

 

2,936

 

 

 

13,309

 

Total other expenses

 

 

23,366

 

 

 

9,850

 

 

 

3,096

 

 

 

1,636

 

 

 

9,379

 

 

 

47,327

 

Net income (loss) before taxes

 

 

23,109

 

 

 

8,138

 

 

 

621

 

 

 

1,094

 

 

 

(6,848

)

 

 

26,114

 

Income tax (provision) benefit

 

 

(8,004

)

 

 

(2,819

)

 

 

(195

)

 

 

(380

)

 

 

2,353

 

 

 

(9,045

)

Net income (loss) after taxes

 

$

15,105

 

 

$

5,319

 

 

$

426

 

 

$

714

 

 

$

(4,495

)

 

$

17,069

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,671

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

12,398

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, gross (1)

 

$

1,760,297

 

 

$

885,599

 

 

$

126,177

 

 

$

1,293

 

 

$

21,376

 

 

$

2,794,742

 

Total assets

 

 

1,693,668

 

 

 

871,154

 

 

 

117,535

 

 

 

3,535

 

 

 

507,693

 

 

 

3,193,585

 

Total funds borrowed (2)

 

 

1,403,338

 

 

 

721,820

 

 

 

97,387

 

 

 

2,929

 

 

 

420,664

 

 

 

2,646,138

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.88

%

 

 

1.30

%

 

 

0.61

%

 

NM

 

 

NM

 

 

 

1.14

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

6.11

 

Return on average equity

 

 

11.26

 

 

 

7.80

 

 

 

3.73

 

 

NM

 

 

NM

 

 

 

6.76

 

Interest yield

 

 

13.43

 

 

 

9.78

 

 

 

11.48

 

 

NM

 

 

NM

 

 

 

11.67

 

Net interest margin, gross

 

 

9.78

 

 

 

6.23

 

 

 

6.92

 

 

NM

 

 

NM

 

 

 

7.94

 

Net interest margin, net of allowance

 

 

10.32

 

 

 

6.38

 

 

 

7.49

 

 

NM

 

 

NM

 

 

 

8.29

 

Reserve coverage (3)

 

 

5.16

 

 

 

2.42

 

 

 

8.10

 

 

NM

 

 

NM

 

 

 

4.42

 

Delinquency status (4)

 

 

0.57

 

 

 

0.17

 

 

 

10.31

 

 

NM

 

 

NM

 

 

 

0.89

 

Charge-off ratio (5)

 

 

3.75

 

 

 

1.40

 

 

 

0.11

 

 

NM

 

 

NM

 

 

 

2.82

 
(1)
Inclusive of strategic partnership loans held for sale, at lower of amortized cost or fair value.
(2)
Excludes deferred financing costs of $10.2 million as of June 30, 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 loans.

(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, 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 (expense)

 

 

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

 

Other expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries

 

 

3,008

 

 

 

1,976

 

 

 

1,074

 

 

 

583

 

 

 

3,507

 

 

 

10,148

 

Loan servicing fees and collection costs

 

 

4,056

 

 

 

1,193

 

 

 

—

 

 

 

102

 

 

 

(419

)

 

 

4,932

 

Other costs

 

 

2,972

 

 

 

1,541

 

 

 

335

 

 

 

155

 

 

 

1,462

 

 

 

6,465

 

Total other 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

 

$

1,546,252

 

 

$

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 (2)

 

 

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

%

 

NM

 

 

NM

 

 

 

1.93

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

11.49

 

Return on average equity

 

 

15.59

 

 

 

8.68

 

 

 

69.66

 

 

NM

 

 

NM

 

 

 

11.13

 

Interest yield

 

 

13.39

 

 

 

9.99

 

 

 

12.97

 

 

NM

 

 

NM

 

 

 

11.75

 

Net interest margin, gross

 

 

10.02

 

 

 

6.35

 

 

 

8.78

 

 

NM

 

 

NM

 

 

 

8.09

 

Net interest margin, net of allowance

 

 

10.53

 

 

 

6.52

 

 

 

9.49

 

 

NM

 

 

NM

 

 

 

8.42

 

Reserve coverage (3)

 

 

5.05

 

 

 

2.54

 

 

 

9.14

 

 

NM

 

 

NM

 

 

 

4.43

 

Delinquency status (4)

 

 

0.49

 

 

 

0.16

 

 

 

16.78

 

 

NM

 

 

NM

 

 

 

1.19

 

Charge-off (recovery) ratio (5)

 

 

3.11

 

 

 

1.87

 

 

 

(0.03

)

 

NM

 

 

NM

 

 

 

2.44

 
(1)
Inclusive of strategic partnership loans held for sale, at lower of amortized cost or fair value.
(2)
Excludes deferred financing costs of $8.5 million as of June 30, 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 loans. Charge-off ratio in the recreation lending segment was 3.25% 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 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 (expense)

 

 

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

 

Other expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries

 

 

6,650

 

 

 

4,353

 

 

 

2,216

 

 

 

1,233

 

 

 

5,689

 

 

 

20,141

 

Loan servicing fees and collection costs

 

 

7,238

 

 

 

1,970

 

 

 

—

 

 

 

251

 

 

 

29

 

 

 

9,488

 

Other costs

 

 

6,112

 

 

 

3,371

 

 

 

666

 

 

 

339

 

 

 

2,186

 

 

 

12,674

 

Total other 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

 

$

1,546,252

 

 

$

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 (2)

 

 

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

%

 

NM

 

 

NM

 

 

 

1.93

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

12.21

 

Return on average equity

 

 

14.25

 

 

 

9.31

 

 

 

88.99

 

 

NM

 

 

NM

 

 

 

11.63

 

Interest yield

 

 

13.34

 

 

 

9.88

 

 

 

12.10

 

 

NM

 

 

NM

 

 

 

11.70

 

Net interest margin, gross

 

 

10.07

 

 

 

6.34

 

 

 

8.53

 

 

NM

 

 

NM

 

 

 

8.01

 

Net interest margin, net of allowance

 

 

10.57

 

 

 

6.50

 

 

 

9.10

 

 

NM

 

 

NM

 

 

 

8.33

 

Reserve coverage (3)

 

 

5.05

 

 

 

2.54

 

 

 

9.14

 

 

NM

 

 

NM

 

 

 

4.43

 

Delinquency status (4)

 

 

0.49

 

 

 

0.16

 

 

 

16.78

 

 

NM

 

 

NM

 

 

 

1.19

 

Charge-off ratio (5)

 

 

3.71

 

 

 

1.71

 

 

 

0.21

 

 

NM

 

 

NM

 

 

 

2.77

 
(1)
Inclusive of strategic partnership loans held for sale, at lower of amortized cost or fair value.
(2)
Excludes deferred financing costs of $8.5 million as of June 30, 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 loans. Charge-off ratio in the recreation lending segment was 3.94% when excluding loans held for sale.

(NM) Not meaningful.

(*) Line item is not applicable to segments.
v3.26.1
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

(10) COMMITMENTS AND CONTINGENCIES

(A) EMPLOYMENT AGREEMENTS

The Company has employment agreements with certain key officers, including Mr. Alvin Murstein and Mr. Andrew Murstein, for either a one-, two-, or three-year term. Typically, the contracts will renew for new one-, two- or three- year terms unless prior to the term either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current one-, two- or three-year term (as applicable); however, there is currently one agreement with a three-year term that does not have a renewal period. In the event of a change in control, as defined, during the employment period, the agreements provide for severance compensation to the executive in an amount equal to the balance of the salary, bonus, and value of fringe benefits which the executive would be entitled to receive for the remainder of the employment period.

On October 24, 2025, Mr. Alvin Murstein, the Company's current Executive Chairman of the Board of Directors, or the Board, entered into an amendment to the First Amended and Restated Employment Agreement, dated May 29, 1998, as amended, between him and the Company. Pursuant to such amendment: (i) effective as of January 31, 2026 (the “Transition Date”), Mr. Murstein no longer served as the Chief Executive Officer and became the Executive Chairman of the Board to serve through May 29, 2027 (the “Term”); (ii) during the period between the date of such amendment and the Transition Date, Mr. Murstein, among other things, continued to serve as Chief Executive Officer of the Company; (iii) during the period from the Transition Date until the end of the Term (the “Retirement Date”), Mr. Murstein shall, among other things, continue to serve as Executive Chairman of the Board with the Company's expectation that Mr. Murstein will be nominated to serve a new three-year term as a Board member at the 2026 Annual Meeting of Shareholders of the Company and a failure by the Board to so nominate Mr. Murstein would constitute termination without cause under his employment agreement; (iv) Mr. Murstein remains an employee of the Company in his role as Executive Chairman of the Board; (v) Mr. Murstein's compensation shall be determined without regard to the transition to Executive Chairman, provided that, all incentive equity awards that are determined to be granted to Mr. Murstein in respect of calendar years 2025, 2026 and 2027 shall be granted solely in the form of restricted stock and options; and (vi) on the Retirement Date (or earlier if termination occurs by reason of death or disability), all outstanding unvested equity awards, other than performance awards, will immediately vest and, if applicable, become exercisable and all outstanding performance awards will remain outstanding until the end of the relevant performance periods and vest and be earned to the extent applicable objects have been met, on a prorated basis for the portion of the performance period that Mr. Murstein was employed.

In addition, on October 24, 2025, Mr. Andrew Murstein, the Company’s current President, Chief Executive Officer and Chief Operating Officer, entered into an amendment to the First Amended and Restated Employment Agreement, dated May 29, 1998, as amended, between him and the Company. Pursuant to such amendment, effective as of January 31, 2026, Mr. Andrew Murstein became the President, Chief Executive Officer and Chief Operating Officer of the Company and shall remain President, Chief Executive Officer and Chief Operating Officer through the remainder of the employment term.

On January 12, 2026, the Company, Medallion Bank, and Mr. Donald Poulton entered into an amendment to the Employment Agreement, dated June 27, 2016 among Mr. Poulton, the Company, and Medallion Bank. Pursuant to such amendment, effective January 12, 2026, Donald Poulton no longer served as President of Medallion Bank, but remained the Chief Executive Officer of Medallion Bank through the remainder of the employment term. All other terms of his existing employment agreement continued to be in full force and effect, in accordance with its terms, through Mr. Poulton's retirement effective June 30, 2026.

In addition, on January 12, 2026, the Company, Medallion Bank and Mr. D. Justin Haley entered into a Second Amended and Restated Employment Agreement. Pursuant to the agreement, effective January 12, 2026, Mr. Haley no longer served as Executive Vice President and Chief Financial Officer of Medallion Bank, but became the President of Medallion Bank. Effective June 30, 2026, Mr. Haley assumed the role of Chief Executive Officer. The employment agreement has a two-year term that automatically renews each year for an additional two-year term commencing on January 1, 2027 unless terminated by either party. Under the employment agreement, Mr. Haley is entitled to an annual base salary of $430,000 effective January 1, 2026, which shall be reviewed by the Board of Directors of the Company not less than once each fiscal year and may be increased but not decreased from the then existing base salary. The employment agreement provides for a severance payment if the employment agreement is terminated under certain conditions. The employment agreement contains a non-competition covenant from Mr. Haley in the Company’s and Medallion Bank’s favor.

As of June 30, 2026, employment agreements expire at various dates through 2029, with future minimum payments under these agreements of approximately $7.0 million.

(B) OTHER COMMITMENTS

As of June 30, 2026, the Company had no other commitments. Generally, any commitments would be on the same terms as loans to or investments in existing borrowers or investees, and generally have fixed expiration dates. Since some commitments would be expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

(C) OTHER LITIGATION AND REGULATORY MATTERS

The Company and its subsidiaries are subject to inquiries from certain regulators and are currently involved in various legal proceedings incident to the normal course of business, including collection matters with respect to certain loans. The Company intends to vigorously defend any outstanding claims and pursue its legal rights. In the opinion of management, based on the advice of legal counsel, there is no proceeding pending, or to the knowledge of management threatened, which in the event of an adverse decision could result in a material adverse impact on the financial condition or results of operations of the Company.
v3.26.1
Related Party Transactions
 6 Months Ended
Jun. 30, 2026
Related Party Transactions [Abstract]  
Related Party Transactions

(11) RELATED PARTY TRANSACTIONS

Certain directors, officers, and stockholders of the Company are also directors and officers of its main consolidated subsidiaries, MFC, Medallion Capital, Freshstart, and the Bank, as well as other subsidiaries. Officer salaries are set by the Board of Directors of the Company.

Jeffrey Rudnick, the son of one of the Company’s directors and brother-in-law of one of the Company’s officers and directors, previously served as the Company’s Senior Vice President and effective July 24, 2025, serves as the Company's Executive Vice President at a salary of $277,000 per year, an increase from $269,000 per year in 2025. Mr. Rudnick received an annual cash bonus of $101,000 and $75,000 as well as an equity grants in the amount of $54,000 and $50,000 during the six months ended June 30, 2026 and 2025.

Jameson Poulton, the son of one of Medallion Bank’s former officers and current Medallion Bank director, serves as Medallion Bank’s Manager of Data Analytics at a salary of $120,000 per year, an increase from $107,120 per year. Mr. Poulton received an annual cash bonus of $16,068 and $13,000 as well as an equity grants in the amount of $0 and $2,601 during the six months ended June 30, 2026 and 2025.
v3.26.1
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2026
Investments, All Other Investments [Abstract]  
Fair Value of Financial Instruments

(12) FAIR VALUE OF FINANCIAL INSTRUMENTS

FASB ASC Topic 825, “Financial Instruments,” requires disclosure of fair value information about certain financial instruments, whether assets, liabilities, or off-balance-sheet commitments, if practicable.

The following table presents the carrying amounts and fair values of the Company’s financial instruments as of June 30, 2026.

 

 

June 30, 2026

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents, and federal funds sold (1)

 

$

205,991

 

 

$

205,991

 

 

$

205,741

 

 

$

250

 

 

$

—

 

Investment securities

 

 

69,933

 

 

 

69,933

 

 

 

—

 

 

 

69,933

 

 

 

—

 

Loans held for investment, net of allowance

 

 

2,650,665

 

 

 

2,671,000

 

 

 

—

 

 

 

—

 

 

 

2,671,000

 

Loans held for sale, at lower of amortized cost or fair value

 

 

21,376

 

 

 

21,376

 

 

 

—

 

 

 

—

 

 

 

21,376

 

Accrued interest receivable

 

 

20,923

 

 

 

20,923

 

 

 

20,923

 

 

 

—

 

 

 

—

 

Equity securities (2)

 

 

1,769

 

 

 

1,769

 

 

 

1,769

 

 

 

—

 

 

 

—

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed (3)

 

 

2,646,138

 

 

 

2,657,865

 

 

 

—

 

 

 

2,657,865

 

 

 

—

 

Accrued interest payable

 

 

6,101

 

 

 

6,101

 

 

 

6,101

 

 

 

—

 

 

 

—

 
(1)
Includes federal funds sold and interest bearing deposits in other banks.
(2)
Included within other assets on the balance sheet.
(3)
Excludes deferred financing costs of $10.2 million as of June 30, 2026.

The following table presents the carrying amounts and fair values of the Company’s financial instruments as of December 31, 2025.

 

December 31, 2025

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents, and federal funds sold (1)

 

$

201,564

 

 

$

201,564

 

 

$

200,814

 

 

$

750

 

 

$

—

 

Investment securities

 

 

60,183

 

 

 

60,183

 

 

 

—

 

 

 

60,183

 

 

 

—

 

Loans held for investment, net of allowance

 

 

2,436,916

 

 

 

2,421,988

 

 

 

—

 

 

 

—

 

 

 

2,421,988

 

Loans held for sale, at lower of amortized cost or fair value

 

 

15,144

 

 

 

15,144

 

 

 

—

 

 

 

—

 

 

 

15,144

 

Accrued interest receivable

 

 

19,401

 

 

 

19,401

 

 

 

19,401

 

 

 

—

 

 

 

—

 

Equity securities (2)

 

 

1,787

 

 

 

1,787

 

 

 

1,787

 

 

 

—

 

 

 

—

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed (3)

 

 

2,410,016

 

 

 

2,431,011

 

 

 

—

 

 

 

2,431,011

 

 

 

—

 

Accrued interest payable

 

 

6,319

 

 

 

6,319

 

 

 

6,319

 

 

 

—

 

 

 

—

 
(1)
Includes federal funds sold and interest bearing deposits in other banks.
(2)
Included within other assets on the balance sheet.
(3)
Excludes deferred financing costs of $8.4 million as of December 31, 2025.
v3.26.1
Fair Value of Assets and Liabilities
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Assets and Liabilities

(13) FAIR VALUE OF ASSETS AND LIABILITIES

The Company follows the provisions of FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements.

In accordance with FASB ASC 820, the Company has categorized its assets and liabilities measured at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). The Company's assessment and classification of an investment within a level can change over time based upon maturity or liquidity of the investment and would be reflected at the beginning of the quarter in which the change occurred.

As required by FASB ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a level 3 fair value measurement may include inputs that are observable (levels 1 and 2) and unobservable (level 3). Therefore, gains and losses for such assets and liabilities categorized within the level 3 table below may include changes in fair value that are attributable to both observable inputs (levels 1 and 2) and unobservable inputs (level 3).

Assets and liabilities measured at fair value, recorded on the consolidated balance sheets, are categorized based on the inputs to the valuation techniques as follows:

Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access (examples include active exchange-traded equity securities, exchange-traded derivatives, most U.S. Government and agency securities, and certain other sovereign government obligations).

Level 2. Assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:

a)
Quoted prices for similar assets or liabilities in active markets (for example, restricted stock);
b)
Quoted price for identical or similar assets or liabilities in non-active markets (for example, corporate and municipal bonds, which trade infrequently);
c)
Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and
d)
Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability (examples include certain residential and commercial mortgage-related assets, including loans, securities, and derivatives).

The Company’s investment securities are recorded at the estimated fair value of such investments.

Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the assets or liability (examples include certain private equity investments, and certain residential and commercial mortgage-related assets, including loans, securities, and derivatives).

A review of fair value hierarchy classification is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain assets or liabilities. Reclassifications impacting level 3 of the fair value hierarchy are reported as transfers in/out of the level 3 category as of the beginning of the quarter in which the reclassifications occur.

Equity investments were recorded at cost less impairment plus or minus observable price changes. Commencing in 2020, the Company elected to measure equity investments at fair value on a non-recurring basis.

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of June 30, 2026.

June 30, 2026
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

—

 

 

$

69,933

 

 

$

—

 

 

$

69,933

 

Equity securities (2)

 

 

1,769

 

 

 

—

 

 

 

—

 

 

 

1,769

 

Total

 

$

1,769

 

 

$

69,933

 

 

$

—

 

 

$

71,702

 
(1)
Total unrealized loss of $0.1 million and $0.5 million net of tax, was included in other comprehensive income for the three and six months ended June 30, 2026.
(2)
Included within other assets on the balance sheet.

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2025.

December 31, 2025
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

—

 

 

$

60,183

 

 

$

—

 

 

$

60,183

 

Equity securities (2)

 

 

1,787

 

 

 

—

 

 

 

—

 

 

 

1,787

 

Total

 

$

1,787

 

 

$

60,183

 

 

$

—

 

 

$

61,970

 
(1)
Total unrealized gains of $1.8 million, net of tax, was included in other comprehensive income for the year ended December 31, 2025.
(2)
Included within other assets on the balance sheet.

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of June 30, 2026.

June 30, 2026
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments (1)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Total

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 
(1)
For the three and six months ended June 30, 2026, the Company had 0 and 1 equity investment, measured on a non-recurring basis, that had a fair value of $0.

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2025.

December 31, 2025
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments (1)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Total

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 
(1)
For the year ended December 31, 2025, the Company had 8 equity investments, measured on a non-recurring basis, that had a fair value of $0.

Significant Unobservable Inputs

ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as level 3 within the fair value hierarchy. The tables below are not intended to be all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the Company.

The following table presents the Company’s valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of June 30, 2026.

(Dollars in thousands)

 

Fair Value
at June 30, 2026

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments (1)

 

$

—

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower

 

N/A
(1)
Includes projections based on revenue, EBITDA, leverage and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.

The following table presents the Company’s valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of December 31, 2025.

 

(Dollars in thousands)

 

Fair Value
at December 31, 2025

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments (1)

 

$

—

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower

 

N/A
(1)
Includes projections based on revenue, EBITDA, leverage and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.
v3.26.1
Medallion Bank Preferred Stock (Non-controlling Interest)
 6 Months Ended
Jun. 30, 2026
Text Block [Abstract]  
Medallion Bank Preferred Stock (Non-controlling Interest)

(14) MEDALLION BANK PREFERRED STOCK (Non-controlling interest)

On July 21, 2011, the Bank issued, and the U.S. Treasury purchased, 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E for an aggregate purchase price of $26.3 million under the Small Business Lending Fund Program, or SBLF, with a liquidation amount of $1,000 per share. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. The Bank pays a dividend rate of 9% on the Series E.

On December 17, 2019, the Bank closed an initial public offering of 1,840,000 shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, or Series F Preferred Stock, with a $46.0 million aggregate liquidation amount, or $25 per share, yielding net proceeds of $42.5 million. Dividends were payable quarterly from the date of issuance to, but excluding, April 1, 2025, at a rate of 8% per annum, and from and including April 1, 2025, at a floating rate equal to three-month Term 90-day Secured Overnight Financing Rate, or SOFR, plus a spread of 6.46% per annum.

On May 29, 2025, the Bank closed an initial public offering of 3,100,000 shares of its Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series G, with a $77.5 million aggregate liquidation amount, or $25 per share, yielding net proceeds of $73.1 million. Dividends are payable quarterly from the date of issuance to, but excluding July 1, 2030, at a fixed rate equal to 9.00% per annum, and from and including July 1, 2030, during each reset period at a rate equal to the five-year U.S. Treasury rate plus a spread of 4.94% per annum.

On July 1, 2025, the Bank redeemed its Series F Preferred Stock, in its entirety, at an aggregate redemption price of $46.0 million. Upon redemption, the Company incurred a charge of approximately $3.5 million in calculating earnings attributable to common stockholders representing the excess of the redemption price over the carrying amount of $42.5 million.
v3.26.1
Subsequent Events
 6 Months Ended
Jun. 30, 2026
Subsequent Events [Abstract]  
Subsequent Events

(15) SUBSEQUENT EVENTS

The Company has evaluated the effects of events that have occurred subsequent to June 30, 2026 through the date of financial statement issuance for potential recognition or disclosure. As of such date, there were no subsequent events that required recognition or disclosure.
v3.26.1
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the U.S., or GAAP, requires management to make estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. Accounting estimates and assumptions are those that management considers to be the most critical to an understanding of the consolidated financial statements because they inherently involve significant judgments and uncertainties. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these consolidated financial statements. If such conditions change, it is reasonably possible that the judgments and estimates could change, which may result in future impairments of goodwill and intangible assets, and allowance for credit losses, among other effects.

Basis of Presentation

Basis of Presentation

The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation.

The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of variable interest entities, or VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest.

Cash, Cash Equivalents, and Restricted Cash

Cash, Cash Equivalents, and Restricted Cash

The Company considers all highly liquid instruments with an original purchased maturity of three months or less, federal funds sold, interest-bearing deposits in other banks, and money market mutual funds to be cash equivalents. A non-interest-bearing compensating balance of $0.9 million and $0.7 million as of June 30, 2026 and December 31, 2025 was maintained at a correspondent bank and considered to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash also included $0.3 million and $0.8 million of interest-bearing funds deposited in other banks with original terms of 5 to 6 years that cannot be withdrawn but are salable on an active secondary market, without penalty, as of June 30, 2026 and December 31, 2025. As of June 30, 2026, the Company held $0.6 million in a money market account in connection with a letter of credit. Certain of the Company's borrowings require that the Company and its subsidiaries maintain cash at specific levels pursuant to covenants in applicable debt agreements. The Company is compliant with these covenants as of June 30, 2026.
Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, FASB Accounting Standards Codification, or ASC, Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e., a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 12 and 13 to the consolidated financial statements.
Equity Investments

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments were $8.7 million and $8.1 million as of June 30, 2026 and December 31, 2025, which were comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. Substantially all of these equity investments are held by Medallion Capital, our SBIC subsidiary, in connection with its mezzanine lending business. As of June 30, 2026, cumulative impairment of $5.3 million had been recorded with respect to these investments. During the three and six months ended June 30, 2026, the Company recognized net gains of $0.2 million and $0.5 million on equity investments, net of losses, inclusive of $0 and $0.4 million of net realized gains.

During 2021, the Company purchased $2.0 million of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in gain (loss) on equity investments. The fair value of these securities were $1.8 million as of both June 30, 2026 and December 31, 2025 and are included in other assets on the consolidated balance sheets. The Company recognized less than $0.1 million of losses for each of the three and six months ended June 30, 2026 and less than $0.1 million of gains for each of the three and six months ended June 30, 2025.
Investment Securities

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized using the interest method. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed. In accordance with ASC 326, the Company does not maintain an allowance for credit losses for accrued interest receivable.

For available-for-sale debt securities in an unrealized loss position, the Company first determines if it intends to sell the security, or if it is more likely than not that the Company will be required to sell it before recovering its amortized cost basis. If either condition is met, the security’s amortized cost basis is written down to its fair value through earnings. If neither condition is met, the Company assesses whether the decline in fair value is the result of credit losses or other factors. This assessment includes reviewing changes in the rating of the security by a rating agency, increases in defaults on the underlying collateral, and the extent to which the securities are issued by the federal government or its agencies, including the amount of the guarantee issued by those agencies, among other factors. If a credit loss exists, the Company compares the present value of expected cash flows from the security to its amortized cost basis. If the present value is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded through earnings, but limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment not recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of taxes.

Changes in the allowance for credit losses are recorded as a provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management confirms the uncollectibility of an available-for-sale debt security or when either of the criteria regarding intent or requirement to sell is met. There were no investment securities allowance for credit losses as of June 30, 2026 and December 31, 2025.
Loans

Loans

The Company’s loans, classified as held for investment, are currently reported at amortized cost, which is the principal amount outstanding, inclusive of loan origination costs, which primarily includes deferred costs paid to loan originators, and which are amortized to interest income over the life of the loan.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. As of June 30, 2026 and December 31, 2025, net loan origination costs included in loans were $59.7 million and $52.0 million. Net amortization reducing interest income was $3.7 million and $6.7 million for the three and six months ended June 30, 2026 and was $2.6 million and $4.9 million for the three and six months ended June 30, 2025.

Interest income is recorded on the accrual basis. The consumer loan portfolio is typified by a large number of smaller dollar loans that have similar characteristics. When, based on current information and events, it is unlikely the Company will be able to collect all amounts due according to the contractual terms of the original loan agreement, a loan is considered nonperforming. Loans are considered past due when a borrower fails to make a full payment by the payment due date or maturity date. Consumer loans are placed on nonaccrual when they become 90 days past due, and are charged off in their entirety when deemed uncollectible, if they enter bankruptcy, or when they become 120 days past due, whichever occurs first. The Company takes appropriate recovery efforts against both the borrower and the underlying collateral are initiated for nonaccrual loans. For the recreation loan portfolio, the process to repossess the collateral is generally started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged off. If the collateral is repossessed, a loss is recorded by writing the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as recoveries. Commercial loans and taxi medallion loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectibility of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal.

The Company may modify the contractual cash flow of loans in situations where borrowers are experiencing financial difficulties. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include interest rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off.

Loan collateral in process of foreclosure includes consumer repossessed collateral in the process of being sold in addition to taxi medallion loans that have reached 120 days past due and have been charged down to the net realizable value of the underlying collateral. For New York City taxi medallion loans in the process of foreclosure, the Company continued to utilize a maximum net value of $79,500 when assessing net realizable value for these taxi medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time. The "loan collateral in the process of foreclosure" designation reflects that the collection activities on these loans have transitioned from working with the borrower to the liquidation of the collateral securing the loans.
Loans Held For Sale

Loans Held for Sale

Loans held for sale consist of consumer loans, including loans originated through strategic partnerships, that are intended to be sold. Loans held for sale are recorded at the lower of amortized cost or fair value. Changes in fair value are recognized in non-interest income. For loans transferred into the held for sale classification from the held for investment classification, any allowance for credit losses previously recorded is reversed at the transfer date, and the loans are transferred at their amortized cost basis (which is reduced by any previous charge-offs, but excludes any allowance for credit losses). For the three and six months ended June 30, 2026, the Company did not recognize any fair value adjustments related to loans held for sale.
Allowance for Credit Losses

Allowance for Credit Losses

The Company follows Accounting Standards Update, or ASU, 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or ASC 326, which requires recognition of lifetime expected losses using "reasonable and supportable" expectations about the future, referred to as the current expected credit loss, or CECL, methodology. For consumer loans, the Company uses historical delinquent loan performance, qualitative adjustments, and actual loss rates modified by quantitative adjustments based on macroeconomic factors over a twelve-month reasonable and supportable forecast period followed by a six month reversion period. For commercial loans, the Company assesses the historical impact that macroeconomic indicators have had on the loan portfolio, to determine an approximate allowance for credit loss. Unlike consumer loans, where loans may have similar performing characteristics, each commercial loan is unique. The Company evaluates each commercial loan for specific impairment with additional allowance for credit losses recognized as necessary. For taxi medallion loans, the Company individually evaluates each loan and establishes a reserve based on fair value of collateral less cost to sell.

The allowance is evaluated on a quarterly basis by management based on the collectibility of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation is inherently subjective, as it requires estimates, including those based on changes in economic conditions, that are susceptible to significant revision as more information becomes available. Credit losses are deducted from the allowance, and subsequent recoveries are added back to the allowance. The Company has elected to exclude accrued interest from its measurement of the allowance for credit losses.
Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill assets arose as a result of the excess of fair value over book value for several of our previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company's requirement to consolidate these previously unconsolidated subsidiaries and was subject to a purchase price accounting allocation process conducted by an independent third-party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis.

Other intangible assets with finite useful lives are amortized either on an accelerated or straight-line basis over their estimated useful lives. Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

As of June 30, 2026 and December 31, 2025, the Company had goodwill of $150.8 million, all of which related to the recreation and home improvement lending segments. As of June 30, 2026 and December 31, 2025, the Company had intangible assets of $17.0 million and $17.7 million. The Company recognized $0.4 million and $0.7 million of amortization expense on the intangible assets for the three and six months ended June 30, 2026 and 2025.

Management engaged an independent third-party expert to perform a quantitative assessment of goodwill for impairment at October 1, 2025. The third-party expert, as of the most recent goodwill impairment testing date, determined that a fair value premium existed in excess of the carrying value of the recreation and home improvement lending segments. During the three and six months ended June 30, 2026, the Company did not identify any triggering events that would require re-evaluation of goodwill impairment in either segment.

The table below presents the intangible assets as of the dates presented:

(Dollars in thousands)

 

June 30, 2026

 

 

December 31, 2025

 

Brand-related intellectual property

 

$

12,925

 

 

$

13,475

 

Home improvement contractor relationships

 

 

4,054

 

 

 

4,226

 

Total intangible assets

 

$

16,979

 

 

$

17,701

 

 
Fixed Assets

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $0.7 million and $1.3 million for the three and six months ended June 30, 2026 and $0.6 million and $1.2 million for the three and six months ended June 30, 2025.
Deferred Costs

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense, included as interest expense in the Consolidated Statements of Operations, was $1.2 million and $2.2 million for the three and six months ended June 30, 2026 and was $1.1 million and $2.2 million for the three and six months ended June 30, 2025. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amount of deferred financing costs on the Company’s balance sheet related to deposits and borrowing facilities were $10.2 million and $8.4 million as of June 30, 2026 and December 31, 2025, and there were no capitalized transaction costs as of June 30, 2026 and December 31, 2025.
Income Taxes

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, or ASC 740. Deferred tax assets and liabilities reflect the impact of temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at the enacted tax rates expected to apply in the year when taxes are actually paid or recovered. Deferred tax assets are also recorded for net operating losses, capital losses and any tax credit carryforwards. A valuation allowance is provided against a deferred tax asset when it is more likely than not that some or all of the deferred tax assets will not be realized. All available evidence, both positive and negative, is considered to determine whether a valuation allowance for deferred tax assets is needed. Items considered in determining the Company’s valuation allowance include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carryforward periods and the expected timing of the reversal of temporary differences. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense.
Earnings Per Share (EPS)

Earnings Per Share (EPS)

Basic earnings per share are computed by dividing net income resulting from operations available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after considering the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below presents the calculation of basic and diluted EPS.

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands, except share and per share data)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net income attributable to common stockholders

 

$

7,445

 

 

$

11,069

 

 

$

12,398

 

 

$

23,083

 

Weighted average common shares outstanding applicable to basic EPS

 

 

23,288,732

 

 

 

22,783,947

 

 

 

23,174,870

 

 

 

22,677,961

 

Effect of performance stock unit grants

 

 

260,744

 

 

 

669,376

 

 

 

495,012

 

 

 

592,511

 

Effect of restricted stock grants

 

 

217,392

 

 

 

361,690

 

 

 

352,197

 

 

 

468,970

 

Effect of dilutive stock options

 

 

246,435

 

 

 

243,071

 

 

 

258,105

 

 

 

238,772

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

24,013,303

 

 

 

24,058,084

 

 

 

24,280,184

 

 

 

23,978,214

 

Basic earnings per share

 

$

0.32

 

 

$

0.49