Key Highlights

  • Hercules Capital posted net Investment income of $87.3 million, or $0.47 per share, and net asset value of $12.26 per share.
  • OFS Capital reported net asset value of $7.38 per share, down from $8.41 at June 30, 2026.
  • Medallion Financial lifted originations 41% to $603.9 million while EPS dropped to $0.10 from $0.32.
  • Credit Acceptance recorded a $56.6 million net loss as its provision for Credit losses climbed to $410.9 million.
  • The Bancorp reported Return on Equity of 36.0% and Fintech fees of $41.8 million.

What Did Specialty Lenders and BDCs Report for the Third Quarter of 2026?

Five specialty lenders and Business development companies reported figures for the quarter ended September 30, 2026, and the results varied widely. Hercules Capital (NYSE:HTGC) posted net investment income of $87.3 million, or $0.47 per share, with net asset value of $12.26 per share. OFS Capital (NASDAQ:OFS) reported net asset value of $7.38 per share, down from $8.41 at June 30, 2026. Medallion Financial (NASDAQ:MFIN) reported Net Income of $2.4 million, or $0.10 per share, on originations of $603.9 million, up 41%. Credit Acceptance (NASDAQ:CACC) reported a net loss of $56.6 million, or $5.43 per diluted share, with Loan assignment Volume up 51.0% to $1.4 billion. The Bancorp (NASDAQ:TBBK) reported net income of $62.8 million, or $1.53 per diluted share, and return on equity of 36.0%.

The group covers venture debt, middle market lending, consumer lending, subprime auto finance and card-issuing banking, so this comparison relies on each company's own reported numbers instead of a single ranking. Two of them, Medallion Financial and Credit Acceptance, combined faster loan growth with lower profit, because new loans carry upfront credit loss provisions.

Hercules Capital: Did Net Investment Income Cover the $0.47 Payout?

Hercules Capital is an internally managed specialty finance company that lends to venture and institutionally backed technology and life sciences companies. Total investment income reached $140.1 million, up from $138.1 million a year earlier, while net investment income was $87.3 million, or $0.47 per basic share, compared with $88.6 million, or $0.49. Distributions paid were $0.47 per share in both periods, so the payout was covered on a per share basis.

Net asset value per share stood at $12.26 on September 30, 2026, against $12.13 on December 31, 2025. The total investment portfolio grew to $4,845.9 million at Fair Value from $4,466.6 million, and total Yield was 11.9%, compared with 13.0% a year earlier.

OFS Capital: Why Did Net Asset Value Fall to $7.38?

OFS Capital is an externally managed Business Development Company that invests mainly in middle market loans, structured finance securities and equity. Net asset value per share dropped about 12.2% on a calculated basis within a single quarter. The company attributed the decline mainly to a net loss on investments of $0.89 per share and to a $0.17 distribution that exceeded net investment income of $0.05 per share.

Total investment income was $5.9 million, against $10.6 million in the third quarter of 2025, and net investment income was $719 thousand compared with $2,940 thousand. One holding, the common equity of Pfanstiehl Holdings, was valued at $87.7 million, or 34.8% of the portfolio at fair value and 88.7% of net assets. On October 5, 2026, an investor acquired about 56.62% of the Subsidiary that holds those shares for $52.3 million, and Pfanstiehl filed a complaint challenging the transaction on October 26, 2026.

Medallion Financial: How Did Earnings Fall While Originations Rose 41%?

Medallion Financial originates and services consumer and commercial loans and provides origination services to fintech partners. On October 29, 2026, it reported net income attributable to stockholders of $2.4 million, or $0.10 per diluted share, down from $7.8 million, or $0.32. Originations climbed to $603.9 million from $427.4 million, with home improvement originations up 145% to $146.3 million and recreation originations up 40% to $198.2 million.

The provision for credit losses came to $30.8 million, up from $18.6 million. Net interest income rose 5% to $58.4 million, but net interest Margin narrowed to 7.34% from 8.21%. After quarter end, the board approved a new $40 million stock repurchase program.

Credit Acceptance: What Drove the $5.43 Loss?

Credit Acceptance provides financing programs through a nationwide network of automobile dealers. It filed its report on October 29, 2026, showing a net loss of $56.6 million compared with net income of $108.2 million a year earlier. Total Revenue rose 2.1% to $594.6 million, so the swing came from costs. The provision for credit losses was $410.9 million, up from $152.0 million, and included $143.7 million tied to a change in the method for forecasting future net cash flows.

Consumer Loan assignment volume reached 110,010 units, up 37.7%, and $1.4 billion, up 51.0%, with a record 12,093 active dealers. The company completed a $600.0 million Term ABS financing on August 20, 2026 and repurchased 269,150 shares for $161.6 million in the quarter.

The Bancorp: How Did Return on Equity Reach 36.0%?

The Bancorp is a Wilmington, Delaware financial Holding Company whose bank issues prepaid, debit and credit cards. Net income was $62.8 million, compared with $54.9 million a year earlier, and diluted EPS rose 29.7% to $1.53 from $1.18. Weighted diluted shares fell to 41.1 million from 46.5 million.

Fintech fees were $41.8 million versus $35.1 million, and gross dollar volume on cards was $54.3 billion against $44.0 billion. Net interest margin fell to 3.75% from 4.45%. Income tax expense dropped to $8.9 million from $18.2 million, including $10.3 million of benefits from purchased transferable tax credits.

How Do the Five Companies Compare on Provisions and Income Coverage?

The figures below are calculated from reported numbers.

  • Credit Acceptance: its provision for credit losses of $410.9 million equals about 69.1% of its $594.6 million of revenue (calculated).
  • Medallion Financial: the $30.8 million provision equals about 52.7% of $58.4 million of net interest income (calculated), and net income fell about 69.2% from $7.8 million to $2.4 million (calculated).
  • OFS Capital: net investment income of $0.05 per share covers about 29.4% of the $0.17 distribution (calculated), while Hercules Capital's $0.47 of net investment income matched its $0.47 of distributions paid, or 100% (calculated).
  • Credit Acceptance moved from $108.2 million of net income to a $56.6 million loss, a swing of $164.8 million (calculated).
  • The Bancorp: fintech fees of $41.8 million are about 31.7% of the $131.9 million sum of net interest income and fintech fees (calculated).

Taken together, the two lenders with the fastest volume growth also carried the heaviest provision burdens, while the bank and the venture lender reported steadier income.

What to Watch Next: Distributions, Lawsuits and Forecast Updates

Several dated items are ahead. Hercules Capital declared a $0.40 distribution plus a $0.07 supplemental distribution on October 26, 2026, both payable on November 17, 2026 to holders of record on November 10, 2026. OFS Capital declared a $0.17 distribution payable on January 7, 2027 to holders of record on December 18, 2026, and how the Pfanstiehl proceeds and the pending lawsuit affect earnings and net asset value is the main open question.

Medallion Financial expects a fourth quarter gain from its October repurchase of $15 million of trust preferred securities at a discount, and readers will likely watch whether net interest margin stabilizes near 7.34%. Credit Acceptance forecast its 2026 vintage at a 65.3% collection rate as of September 30, 2026, down from 67.1% at June 30, 2026, so later reports will show whether forecasts hold. The Bancorp booked $4.3 million of restructuring costs in its Small Business Lending line, and its next reports will show the effect on expenses. None of the five reports provided numeric forward guidance.