Medallion Financial Earnings Call Transcript

DATE

Thursday, February 19, 2026 at 9:00 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Andrew Murstein
• Chief Financial Officer — Anthony N. Cutrone

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TAKEAWAYS

• Total Loans -- $2.567 billion, up 3%, driven by growth in recreation, home improvement, and commercial segments.
• Net Interest Income -- $56.4 million for the quarter, up 8%; $216.9 million for the year, up 7%.
• Net Income Attributable to Shareholders -- $12.2 million for the quarter ($0.50 per diluted share), up $2.1 million; $43 million for the year ($1.78 per share), up $7.2 million.
• Consumer Lending Interest Income -- $74.5 million for the quarter and $289.9 million for the year, up 5% and 8%, respectively.
• Recreation Loan Originations -- $97.2 million for the quarter, $468.5 million for the year; direct loan book at $1.6 billion, 63% of total loans.
• Home Improvement Loan Originations -- $61.7 million for the quarter, $224.5 million for the year; loan book at $810.2 million, 32% of total loans.
• Commercial Loan Originations -- $4.1 million for the quarter and $40.6 million for the year; commercial portfolio $123.1 million, with average interest rate of 14.22%.
• Equity Investment Gains -- $8.8 million of income in the quarter, $24.6 million for the year.
• Strategic Partnership Program Originations -- $258.3 million this quarter, with $1.8 million income; $5.4 million for the year, more than double prior year.
• Provision for Credit Loss -- $27.7 million for the quarter, up from $18.6 million in Q3 and $20.6 million a year ago, largely due to allowance increases and loan recharacterizations.
• Allowance for Credit Losses (Recreation Portfolio) -- 5.32%, up from 5% last year.
• Delinquencies Over 90 Days (Recreation Loans) -- 0.82% of gross recreational loans; home improvement loans at 0.16%.
• Net Charge-Offs -- Recreation: $17.9 million (4.41% total portfolio, 4.53% held for investment); Home Improvement: $2.2 million (1.07% of average portfolio).
• Net Interest Margin -- 8.04% for the quarter, up 20 basis points year over year; 8.06% for the year.
• Dividend -- $0.12 per share for the quarter.
• Net Book Value Per Share -- $17.53, up from $17.07 previous quarter and $16.00 last year.
• Adjusted Tangible Book Value Per Share -- $12.12, up from $11.64 previous quarter and $10.50 last year.
• Taxi Medallion Assets -- Declined to $4.3 million, under 0.2% of total assets; net recoveries and gains of $1.4 million for the quarter, $4.6 million for the year.
• Average FICO on New Originations -- 688 for recreational loans, 779 for home improvement loans, indicating high credit quality.
• Operating Costs -- $22.2 million for the quarter, primarily driven by prior-year insurance benefit realization and personnel expenses.
• Total Loans Held Under Strategic Partnership Program -- $15.1 million at quarter end, with most originations serving employee benefit programs for medical procedures.
• Recreation Loan Average Coupon -- 15.17% as of December 31; January originations at around 14.5%.
• Home Improvement Loan Average Coupon -- 9.87% as of December 31; January originations at around 10%.
• Average Yield on Total Loan Portfolio -- Increased to 12.26%, up from 12.01% a year ago.
• Average Cost of Borrowings -- 4.24% for the quarter, up from 4.12% prior year.
• Interest Rate on Deposits at Medallion Bank -- 3.87% at year-end, compared to 3.71% prior year.

SUMMARY

Medallion Financial Corp. (NASDAQ:MFIN) delivered record-high loan portfolio and net interest income growth driven by disciplined expansion across recreation, home improvement, and commercial lending. CEO Andrew Murstein stated, "we remain confident in our pipeline." and emphasized strategic additions of experienced talent to accelerate home improvement growth. CFO Anthony N. Cutrone explained that the quarter's rise in credit loss provisions resulted primarily from loan recharacterizations and portfolio growth, and projected that future provision levels "should be something less" than the recent quarter. Management reiterated a strong capital allocation approach, underscored by rising book values, a stable dividend, and a commitment to further portfolio growth in 2026 with a focus on risk-adjusted returns.

• Direct loan book growth in consumer lending reached 5%, with consumer lending described as the "largest and most profitable" division by management.
• Net charge-offs increased in the recreation segment, reaching 4.53% of loans held for investment, while the home improvement charge-off rate was 1.07%, reflecting product-specific credit dynamics.
• Equity investment gains were distributed across "a little more than a half a dozen" portfolio holdings, with notable contributions from legacy investments.
• Strategic partnership program income expanded rapidly, with originations above $200 million for two consecutive quarters and management forecasting significant long-term potential.
• Leadership transition occurred as Andrew Murstein assumed the CEO role effective January 31, with a stated focus on disciplined expansion and sustainable value creation.
• Management cited "mid-teens" loan book growth as an objective for 2026, with expectations of higher non-interest expense but continued outperformance of net interest income growth over costs.

INDUSTRY GLOSSARY

• Held for Investment: Loans the company intends to hold until maturity, recorded at amortized cost, not fair value.
• Strategic Partnership Program: Medallion Financial’s model for originating loans, earning short-term origination fees and interest before selling loans to program partners.
• Adjusted Tangible Book Value: Book value per share excluding goodwill, intangible assets, and deferred tax liabilities attributable to those items.
• CECL: "Current Expected Credit Losses," an accounting standard requiring estimation and reporting of potential future credit losses across the loan portfolio.

Full Conference Call Transcript

Andrew. Thank you, and good morning, everyone. 2025 marked a record year for Medallion Financial Corp., with solid performance across our core financial metrics and operating segments. As compared to the fourth quarter and full year 2024, we reported increases in net interest income, net income, originations, and portfolio size, reflecting the strength of our platform and consistent execution across our business line. Loan demand remained healthy, credit performance was solid, and our results

Andrew Murstein: demonstrate our ability to continue scaling the business profitably while maintaining discipline. Across the portfolio, we continue to execute effectively with meaningful contributions from our recreation, home improvement, and commercial lending line. Total loans reached $2,567,000,000 and total originations came in at $421,000,000 for the fourth quarter and $1,500,000,000 for the full year, increases from both the same quarter last year and year over year. These results reflect a focused operating approach and our ongoing commitment to prudent growth across the platform, which I will now walk through in further detail.

I will start with consumer lending, our largest and most profitable business line, which continues to anchor our performance with interest income of $74,500,000 for the quarter and $289,900,000 for the year, growing 5% as compared to the same period of last year and 8% year over year. Within the consumer lending segments, direct loan book grew 5% to $1,600,000,000 at 12/31/2025, representing 63% of our total loans. Originations for the quarter grew to $97,200,000 compared to $72,200,000 a year ago, and interest income rose 6% to $54,200,000.

Delinquencies of 90-plus days were just 0.82% of gross recreational loans and the allowance for credit losses is 5.32% to reflect expected seasonal and economic dynamics as compared to 5% a year ago. The home improvement loan book stood at $810,200,000 at 12/31/2025, representing 32% of our total loans. Originations for the quarter were $61,700,000 versus $82,500,000 last year. Delinquencies of 90-plus days were just 0.16% of gross home improvement loans, and the allowance for credit losses was 2.41% compared to 2.48% a year ago. Importantly, we are originating loans to individuals in these niches that have strong credit quality with average FICOs on new originations now 688 for recreational and 779 for home improvement.

The vast majority of our book falls within super prime to near prime, which has moved up over the years. Moving on to our commercial segment, which continued to deliver meaningful equity gains, we had new originations of $4,100,000 during the quarter compared to $7,300,000 the same quarter a year ago. However, for the year, total originations were $40,600,000 compared to $14,300,000 in 2024. The portfolio increased to $123,100,000 from $111,300,000 last year with an average interest rate of 14.22% compared to 12.97% a year ago. Additionally, as of December 31, we had more than two dozen equity investments with a book value of just $8,100,000 on our balance sheet.

These equity components are a result of our long-term strategic investments, and while the timing of exits is inherently unpredictable, we remain confident in our pipeline. During the quarter, gains from equity investments were strong, generating $8,800,000 of income. For the year, gains from equity investments generated $24,600,000. Our strategic partnership program, whereby we earn an origination fee and about three to five days of interest on holding loans before selling them back to the partner, had its second straight quarter of over $200,000,000 of originations, reaching a record level of $258,300,000 this quarter. Total loans held as of quarter end under the strategic partnership program were $15,100,000.

Most of these loans outside of rec and home improvement are mostly offered as employee benefits by large employers on loans for unplanned or elective medical procedures. Although this program represents a small part of fees and interest generated from Medallion Financial Corp., it has produced approximately $1,800,000 in income this quarter and $5,400,000 for the year. It has more than doubled from the prior year, and it has expanded each quarter, representing a further diversification of our income sources. We continue to work on our growing pipeline of new partner prospects and expect to add new partners over time. Furthermore, we are taking a very methodical approach to growth to ensure we continue to do it the right way.

Lastly, regarding our legacy taxi medallion business, we collected $2,500,000 of cash during the quarter, which resulted in net recoveries and gains of $1,400,000. For the full year, we collected $13,600,000 of cash, which resulted in net recoveries and gains of $4,600,000. Net taxi medallion assets declined to just $4,300,000 and now represent less than two-tenths of a percent of our total assets. From a capital allocation perspective, we remain committed to our shareholders. During the quarter, we paid a quarterly dividend of $0.12 per share and continue to allocate a large portion of our earnings to growth. We continue to prioritize a disciplined origination strategy, prudent balance sheet management, and effective capital deployment while expanding our portfolio.

Our approach is highly analytical and data-driven, supported by advanced digital tools that help optimize

Val Ferraro: writing

Andrew Murstein: origination, servicing, and overall portfolio visibility. These capabilities allow us to assess risk with precision and maintain consistently strong performance across operating environments. And ending the year with positive momentum and solid execution across our business lines, we believe we are well positioned to build on this performance and continue delivering consistent favorable risk-adjusted returns for our shareholders. One last item I wanted to touch on before turning the call over to Anthony is my transition into the CEO role, which took effect on January 31. As I step into this new role, I would like to have a few minutes to discuss our 2026 strategy.

Our focus for 2026 is to build upon the strong foundation established over the past thirty-plus years while further refining our strategic priorities. We aim to continue to grow our core business lines by targeting sustained growth in our recreation segment. In addition, we believe there is significant growth potential within our home improvement line. As a result, in recent months, we added experienced talent to support increased growth and originations in this line, with the goal of continuing to expand the portfolio. Our commercial lending segment also remains a strong contributor to earnings, with the average interest rates increasing to 14.22% this year.

At the same time, our strategic partnership program continues to be a rapidly growing component of our business. While per-loan origination fees and interest income associated with this business remain modest due to the short term the loans remain on our books, originations continue to expand meaningfully quarter over quarter, and we see great potential in this business over the next several years. We remain thoughtful and disciplined in evaluating new business lines and growth opportunities. We will continue to assess adjacent markets where we believe we can expand the business in an accretive manner consistent with our standards and return objectives.

Looking ahead, I am proud of where the company stands today and confident in the foundation we have built together. While we recognize that market conditions may evolve, our strategy remains clear and consistent: execute with discipline, allocate capital thoughtfully, and maintain a long-term perspective focused on sustainable value creation. Our proven business model, diversified portfolio, and experienced management team provide both resilience and flexibility. We continue to evaluate opportunities to optimize our returns, improve margins, and pursue strategic initiatives that align with our core competencies. At the same time, we remain committed to prudent risk management and maintaining a strong balance sheet to support future investments.

I believe the company is well positioned to perform well in the years ahead. We are confident in our ability to navigate changing environments and deliver consistent, attractive returns for our shareholders. With that, I will now turn it over to Anthony, who will provide some additional insight into our quarter.

Anthony N. Cutrone: Thank you, Andrew. For the fourth quarter, net interest income grew 8% to $56,400,000 from $52,000,000 in the same quarter a year ago

Andrew Murstein: and was up 1% over the most recent prior quarter.

Anthony N. Cutrone: For the year, net interest income increased 7% to $216,900,000 from $202,500,000 in 2024. Our net interest margin was 8.04% during the quarter, up 20 basis points from a year ago. For the year,

Mike Grondahl: our net interest margin was 8.06% compared to 8.05% in 2024. Our total interest yield for the quarter increased 16 basis points from a year ago to 11.7% with our average cost of borrowings in the quarter being 4.24% compared to 4.12% a year ago. As of the 2025, the average interest rate on our deposits at Medallion Bank stood at 3.87% compared to 3.71% a year ago. During the fourth quarter, we originated $97,200,000 of recreation loans, $61,700,000 of home improvement loans, with the weighted average coupon in those portfolios being 15.17% and 9.87% as of December 31. In January, we originated recreation loans at rates averaging around 14.5% and originated home improvement loans at rates averaging around 10%.

For the full year, we originated $468,500,000 of recreation loans and $224,500,000 of home improvement loans. Our total loan portfolio reached a value of $2,567,000,000 at December 31, up 3% from a year ago. Total loans included $1,600,000,000 of recreation loans, $810,000,000 of home improvement loans, and $123,000,000 of commercial loans. For the quarter, the average yield on our total loan portfolio increased to 12.26% from 12.01% a year ago. Consumer loans more than ninety days past due were $14,200,000, or 0.6% of total consumer loans, as compared to $11,400,000, or 0.5% a year ago. Our provision for credit loss was $27,700,000 for the quarter, an increase from $18,600,000 in the third quarter and $20,600,000 in the prior-year quarter.

During the quarter, we increased allowance for credit loss in the recreation portfolio by $7,100,000, which accounted for growth in the portfolio and included the recharacterization of certain loans held for sale to held for investment, and reflected the higher allowance coverage of 5.32% at the end of the quarter compared to 5.1% a quarter ago. Provision for credit loss was $1,600,000 on commercial loans and reflected an additional $1,400,000 of credit allowance on these loans.

Val Ferraro: Additionally,

Mike Grondahl: the current quarter provision included a $200,000 benefit related to taxi medallion loans. The total net benefit related to taxi medallion assets during the quarter was $1,400,000. Net charge-offs in the recreation portfolio during the quarter were $17,900,000, or 4.41% on the total average recreation portfolio and 4.53% on the average held for investment recreation portfolio, and were $2,200,000, or 1.07% of the average home improvement portfolio. Turning to expenses, operating costs totaled $22,200,000 during the quarter, up from $17,200,000 in the prior-year quarter.

The increase over the prior year was largely due to realization of insurance benefits in the prior year totaling $5,500,000, which reduced costs, as well as, to a lesser extent, higher employee costs in the current year. As we continue to expand our platforms, grow our businesses, and look to becoming a sizably larger enterprise over the next several years, we anticipate higher non-interest operating costs. We expect in the long term that the growth in our net interest income will outpace any growth we experience in operating. Over the past five years, our loan book has more than doubled and our annual net interest income has grown 96%, while our non-interest operating expenses have increased by roughly 50%.

More importantly, over the last five years, we have seen our book value per share increase 88%, while our tax-adjusted tangible book value has quadrupled. There is a cost to growing, and we will continue to experience that. However, we continue to believe that it is in the best long-term interest of our businesses and our shareholders. For the quarter, net income attributable to our shareholders was $12,200,000, or $0.50 per diluted share, an increase of $2,100,000, or $0.07 per share, over the prior-year quarter. For the full year, net income attributable to shareholders was $43,000,000, or $1.78 per share, an increase of $7,200,000, or $0.26 per share, from 2024.

Our net book value per share as of December 31 was $17.53, up from $17.07 a quarter ago and $16 a share a year ago. Our adjusted tangible book value per share, which excludes the value of goodwill, intangible assets, and the deferred tax liability associated with both, was $12.12 at the end of the quarter, up from $11.64 a quarter ago and $10.50 a year ago. That covers our fourth quarter and full year results. Andrew and I are now happy to take your questions.

Operator: We will now begin the question and answer session. To ask a question, if you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble the roster. The first question comes from Mike Grondahl with Northland Securities. Please go ahead.

Mike Grondahl: Hey, guys. Good morning too.

Operator: First question, the provision expense, the $27,000,000, or $27,700,000. How would you characterize that? It was up from the $18,000,000 in 3Q. Is there a little catch up there? And then what would you think is sort of a normalized provision

Mike Grondahl: quarterly in 2026?

Anthony N. Cutrone: Hey, Mike. How are you doing? Yeah. That is a good question. Just looking at the numbers, it seems

Mike Grondahl: like a pretty sizable increase. But there are a couple of things going on there. One, in Q4, we took the remaining rec loans that we had as held for sale. We moved them back into held for investment. So that was about a $2,200,000 provision hit we had to book the allowance. If we go back a year when we moved these loans, it was actually about $100,000,000 we moved out to held for sale when we were contemplating a sale and speaking to potential buyers. We had about a $4,000,000 gain or benefit.

So between the two of them, that swing—one is a provision in this year, and the other is a benefit last year—that was a $6,000,000 swing. That is part of that $7,000,000. In addition to that, on a $1,600,000,000 book, our allowance coverage went from 5% last year to 5.32%. So there is a step up in allowance that runs through the provision because of that. And then, on top of that, we took commercial provisions of about a million and a half, a little over a million and a half in Q4, and it was just about $100,000 a year ago. That plus—

Anthony N. Cutrone: that plus the taxi medallion benefits, what kind of like that ran through provision this year. This year was only about $200,000. Last year was $1,700,000. There is a whole list of things that reconcile that difference. Going forward, we would not expect it to be the $27,700,000. It should be something less than that. But when we think about growth, we are looking at mid-teens growth looking in 2026 across our loan book. There will be a fair amount of put-on costs with booking allowances as we grow.

Anthony N. Cutrone: Got it. That is helpful.

Operator: And then there were a couple gains, and I know you guys

Christopher Nolan: record these from time to time coming out of the commercial book or coming out of the taxi cab business. Could you just maybe go over a couple of those, the nature of those, the $8,700,000—you know, was that one portfolio company? Was it a couple? And then there is—I think in other, there was like $2,900,000. If you could, a couple of those, the nature of those gains.

Mike Grondahl: Yeah. So in the equity gains, there was a little more than a half a dozen changes and gains that we recognized throughout the quarter with our equity holdings. And, again, that is the $8,000,000 or so that is on our balance sheet.

Operator: Two were actual equity gains. So the three of them total about that $8,500,000. And then some small items that reconcile to the full amount that is net on the income statement. And those other equity gains, one of them was actually our oldest portfolio company. We originally made this loan just about eighteen years ago. I had a lot more hair back then, and the other one was originated four or five years ago. Got it. And then that $2,900,000 in

Anthony N. Cutrone: and I think it was other income, what was that?

Operator: Yeah. So that is—there is a whole host of things there, but the biggest piece of that and the biggest component of that is we had an—and it is somewhat abnormal—income related to our CRA investments at Medallion Bank. Abnormal. We usually do not see it this large. We had—that was approximately $2,700,000. That is in that number. We would not expect to see numbers that large on a regular basis. And that is just part of the investing we do to get CRA credit. We have got a fair amount of investments in these funds that give us the credit. And over time, they do generate a nice return. An added bonus in Q4.

Anthony N. Cutrone: Great. Great. And then Andrew, a question for you. When you were talking about 2026, you seemed to emphasize home improvement a little bit more. That portfolio has sort of been $800,000,000, I think, the last five quarters, give or take a little bit. But you mentioned you had added some talent there. Can you just talk about your growth outlook for home improvement? And did you add some salespeople? How many? That would be helpful. Sure. There was a group

Operator: that used to be at EnerBank, and they moved over when they were sold to Regions Bank.

Andrew Murstein: And I have been tracking how well they have been doing through the years. So we approached them and brought them in. I think Medallion Bank put out a release in the last thirty days or so with the person’s name. And we are excited about the growth opportunities there. We think we are going to grow mid-teens, which is substantially above where we have been, as you pointed out, the last year or two. This portfolio is tremendous credit. It is 780 or so FICO scores, which is AA-plus quality. So it is nice to continue to strengthen our portfolio. That is one of the reasons why we have an investment-grade rating on it.

This portfolio continues to perform extremely well, great margins, and I am happy it is going to be a big part of our growth this year.

Operator: Yeah. And the thing that I would add also, Mike, is that, unlike rec, where we have got a lot more ability to ramp up originations or slow them down because we are dealing with smaller borrowers, the relationships we have with these home improvement contractors and dealers and brokers, it is a little bit different. So there is a lot of lead time involved in preparing for the origination volume that is to come down the line. So if we go back a year ago, we had to temper expectations with our third parties on what we would be able to do throughout the year just given where capital stood. We have gotten past that hurdle.

We were able to raise additional capital at Medallion Bank throughout the year. So now, in addition to what Andrew said, bringing in this talent, we are able to go back to these partners and say, okay, for 2026, we are committed, and we could fund certain levels. The last thing we wanted to do last year was say, yeah, we could originate at a certain level and not be able to do it because of capital constraints. So it was kind of just a decision to keep that book somewhat flat throughout the year.

Anthony N. Cutrone: Got it. Okay. Hey. Thanks, guys.

Andrew Murstein: Thank you, Mike.

Anthony N. Cutrone: The next question is from Christopher Nolan with Ladenburg Thalmann. Please go ahead.

Operator: Hey, guys. Andrew, congratulations on the step up.

Andrew Murstein: And

Anthony N. Cutrone: Anthony, I cannot believe that you had more hair in the past. Anyhow, was the reserve increase driven by CECL, or did you guys have some discretion on that?

Operator: Yeah. It is CECL, right? So there are economic factors that go into it, as well as our historical charge-off experience. Charge-offs—Q4 charge-offs—are always higher than most other quarters. So that has an impact on it. And it is a different product. We have seen the loss experience start to come down on the home improvement, and we are happy with that. It is still elevated in rec. So it is just—I think over time, we will start to see that settle. But right now, we are not seeing that turn the way we have in home improvement.

Mike Grondahl: Great. And to follow up on the previous line of questions, should we be seeing a growth in the reserve ratio in 2026, percentage of loans?

Operator: I would not expect anything significant, although the—obviously—the allowance is going to grow as we grow the book. The overall economy and how we continue to see these borrowers perform going through Q1 and into Q2, that will drive how we think about that allowance coverage ratio.

Mike Grondahl: Gotcha. And for the fourth quarter, what were the charge-offs—net charge-offs? I did not see the quarterly investor presentation. Maybe I missed it.

Operator: Sure. So on the home improvement, I think we spoke about this a few minutes ago. But on home improvement, net charge-offs for Q4 were 1.07%. On the rec portfolio, if we just base it upon loans held for investment, it was 4.53%. If you look at the total portfolio—those that are held for sale and those held for investment—it was 4.41%.

Andrew Murstein: Right.

Mike Grondahl: And given the increase in ninety days past due for rec, should we be seeing a slowdown in the rec originations? And what is causing the erosion of asset quality in the rec portfolio?

Operator: Yeah. Look, we are compensated for the risk, and we understand that. We have been doing this type of lending for a long time. So I do not think we are that concerned, but I think what we are seeing—and, as I said, we have committed a whole lot of resources in terms of manpower, technology, and capital to building out our systems over the past several years. We are going to continue to do that. One of those investments is on a data analytics team that looks at the performance of our portfolio—current, past, and what we expect it to be going forward.

And one of the things that we are trying to do—and we see that in where we are originating in January—is maybe we were outside of the market in terms of rate, a little too high. By bringing that down—January originated at 14.5%—maybe by bringing that down, we think that is going to generate better credit performance. We are still getting—on paper—we are still getting the same borrower. But we think that they are actually going to perform better based upon all the data that we have.

Mike Grondahl: We should see net interest margin coming a little bit, right?

Operator: Yeah. It will have an impact on net interest margin. So we will see that maybe—it will probably drop below the 8%. But when you look at the credit-adjusted yield, we think that long term is going to be better than what we are seeing now.

Mike Grondahl: Great. Final question for Andrew. Thank you for all the strategic commentary that you made. Does this put on the table potential for acquisitions and or a sale of the company? And have you gotten any signals from regulators indicating that they would be receptive to that.

Andrew Murstein: Nothing top of mind. The nice thing is that the ILC charters seem to be more acceptable now from the government agencies. Several of them have been approved for the first time in many years. So the potential for a change of control, I would say, exists today. I do not see us really buying any businesses in the near term. I think there is just so much growth potential in the ones that we have. In terms of sale, again, nothing comes to mind, but I mentioned EnerBank before. And EnerBank is a bank that sold for roughly two to three times book value and 20 to 25 times earnings.

So if we ever got that price, I think we would pull the trigger, which is a significant premium. But I do not see us really doing anything now. I want to continue to do—mean, the last five years, we have made more than we have in the first eighty-five combined. So things are flowing really well for us today. Dividends have been going up. Buybacks should continue to go up. Earnings have been going up. So I think we are on a great course right now.

Mike Grondahl: Sounds good. Okay. Thanks, guys.

Anthony N. Cutrone: Thanks, Chris. This concludes the question and answer session.

Christopher Nolan: I would like to turn the conference back over to Andrew Murstein for closing remarks.

Andrew Murstein: Thank you. And before closing the call, I would just like to reaffirm my strong commitments to Medallion Financial Corp. in my expanded role as CEO. As I mentioned earlier, my priority is to build upon the strong foundation we have established while thoughtfully expanding our capabilities and market presence in a disciplined manner. Having served as President for many years, I have been deeply involved in shaping our direction over the past few decades, and this transition represents a continuation of the leadership principles and long-term approach that have guided us successfully over the years. We will remain focused on disciplined growth, operational excellence across our business lines, and prudent capital allocation.

I am very proud of what our team has accomplished and even more confident in what we can achieve together going forward. Our commitment to our shareholders remains strong, evidenced by our consistent earnings, our strategic buybacks, and our dividend. I just want to thank our employees, partners, and shareholders for your continued trust and support. We look forward to updating you on our progress next quarter. I hope you all have a great rest of your day. Thank you again.

Christopher Nolan: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

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