Medallion Bank, the portfolio company of Medallion Financial, closed a sale of $127 million in prime-credit consumer loan receivables to a super-regional bank for cash proceeds of $134.7 million. As a result, the bank expects to record a gain of $4.4 million for Q4/17.

This is the bank’s third sale of loans that originated within its consumer lending businesses, and consisted primarily of home improvement and recreational vehicle installment loans.

“The loan sale allows us to better manage the size of our balance sheet, generate gains to facilitate future growth and further confirms the value of the bank’s portfolio activities and focused underwriting,” said Donald Poulton, CEO of Medallion Bank. “Aided by our strong network of relationships, we believe we are well positioned to originate additional consumer loans that will generate continued strong risk-adjusted returns for Medallion Bank.”

Consumer lending accounted for the vast majority of the $53 million in pre-income tax net investment income at Medallion Bank for the nine months preceding September 30, 2017.