Medallion Financial closed on a sale of more than $40 million in performing loans to a large super regional bank, recognizing a gain on the transaction.

Andrew Murstein, president of Medallion said, “Given our strong network of relationships, 2016 is shaping up to be another record year of loan production for our consumer loans. This sale of our smallest and least profitable division will not only be accretive to our earnings, but will allow us to redeploy these funds from lower yielding loans to significantly higher yielding loans in our consumer lending area where we continue to have over a 50% pre-tax return on equity.”

Medallion Financial is a specialty finance company that originates and services loans in various commercial industries. Its wholly-owned portfolio company, Medallion Bank, also originates and services consumer loans.