Medallion Bank Reports 2025 Third Quarter Results and Declares Series G Preferred Stock Dividend

SALT LAKE CITY, Oct. 29, 2025 (GLOBE NEWSWIRE) -- Medallion Bank (Nasdaq: MBNKO, the “Bank”), an FDIC-insured bank providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners, announced today its results for the quarter ended September 30, 2025. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

2025 Third Quarter Highlights

Net income of $19.8 million, compared to $15.5 million in the prior year quarter.
Net interest income of $55.9 million, compared to $53.2 million in the prior year quarter. Total non-interest income of $2.3 million, compared to $0.6 million in the prior year quarter.
Net interest margin of 8.64%, compared to 8.44% in the prior year quarter.
Total provision for credit losses was $17.2 million, compared to $20.2 million in the prior year quarter.
Annualized net charge-offs were 2.28% of average loans outstanding, compared to 2.31% in the prior year quarter.
Annualized return on assets and return on equity were 3.08% and 17.77%, respectively, compared to 2.47% and 16.72%, respectively, for the prior year period.
The total loan portfolio size was $2.3 billion as of September 30, 2025 and $2.4 billion as of September 30, 2024.
Total assets were $2.6 billion and the Tier 1 leverage ratio was 17.5% at September 30, 2025.
The Series F preferred stock was redeemed on July 1, 2025, reducing capital by $46 million in the quarter following the Series G preferred stock offering in the quarter ended June 30, 2025.

Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “Earnings grew to $19.8 million in the third quarter, reflecting the resumption of recreation loan growth and stable home improvement and recreation loan performance. Recreation loan volumes were up over the prior year quarter, and strategic partnership loan originations reached a record $208 million in the quarter. Home improvement origination volume continued to be down compared to the prior year quarter, but increased home improvement project activity has been encouraging and should materialize in higher origination volume as those projects are completed and funded. Charge-offs fell from the prior year quarter, driven by a sharp decrease in home improvement losses. The quarterly increase in delinquency was expected and seasonal, but was more muted than the typical increase due to improved home improvement loan performance.

Over the last 21 years, we have built a dynamic consumer lending platform that generates geographically diverse, high-yielding, and high performing assets. We have evolved into a specialty lender with the technical capabilities and risk management practices to thrive, even in uncertain times. Our third quarter results reflect this, and we believe we are positioned well for the future.”

Recreation Lending Segment

Excluding loans held for sale, the Bank’s recreation loan portfolio size was $1.546 billion as of September 30, 2025, compared to $1.555 billion at September 30, 2024. Loan originations were $141.7 million, compared to $139.1 million in the prior year quarter.
Recreation loans were 66% of loans receivable as of September 30, 2025, compared to 65% at September 30, 2024.
Net interest income was $41.3 million, compared to $40.0 million in the prior year quarter.
Delinquencies 30 days or more past due were $74.1 million, or 4.97%, of recreation loans as of September 30, 2025, compared to $64.6 million, or 4.15%, at September 30, 2024.
Annualized net charge-offs were 3.36% of average recreation loans outstanding, compared to 3.18% in the prior year quarter.
The provision for recreation credit losses was $16.7 million, compared to $17.5 million in the prior year quarter.
The allowance for credit losses was 5.10% of the outstanding recreation loan balance, compared to 4.53% of the outstanding recreation loan balance in the prior year quarter.

Home Improvement Lending Segment

The Bank’s home improvement loan portfolio size was $804.0 million as of September 30, 2025, compared to $814.1 million at September 30, 2024. Loan originations were $59.7 million, compared to $96.5 million in the prior year quarter.
Home improvement loans were 34% of loans receivable as of September 30, 2025, essentially unchanged from 34% at September 30, 2024.
Net interest income was $13.7 million, compared to $12.6 million in the prior year quarter.
Delinquencies 30 days or more past due were $7.4 million, or 0.92%, of home improvement loans as of September 30, 2025, down from $8.3 million, or 1.02%, at September 30, 2024.
Annualized net charge-offs were 1.03% of average home improvement loans outstanding, compared to 1.76% in the prior year quarter.
The provision for home improvement credit losses was $2.1 million, compared to $4.9 million in the prior year quarter.
The allowance for credit losses was 2.55% of the outstanding home improvement loan balance, compared to 2.42% of the outstanding home improvement loan balance in the prior year quarter.

Series G Preferred Stock Dividend

On October 23, 2025, the Bank’s Board of Directors declared a quarterly cash dividend of $0.5625 per share on the Bank’s Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series G, which trades on the Nasdaq Capital Market under the ticker symbol “MBNKO.” The dividend is payable on January 2, 2026, to holders of record at the close of business on December 15, 2025.

About Medallion Bank

Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

For more information, visit www.medallionbank.com

Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales (including loan sales), net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as “remains,” “anticipated,” “continue,” “expect,” “may,” “maintain,” “potential” or the negative versions of these words or other comparable words or phrases of a future or forward-looking nature. These statements may relate to our future earnings, returns, capital levels, sources of funding, growth prospects, asset quality and pursuit and execution of our strategy. Medallion Bank’s actual results may differ significantly from the results discussed in such forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in Medallion Bank’s Form 10-K for the year ended December 31, 2024, and in its Quarterly Reports on Form 10-Q, filed with the FDIC. Medallion Bank’s Form 10-K, Form 10-Qs and other FDIC filings are available in the Investor Relations section of Medallion Bank’s website. Medallion Bank’s financial results for any period are not necessarily indicative of Medallion Financial Corp.’s results for the same period.

Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com

MEDALLION BANK STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)		2025		2024		2025		2024
Interest income
Loan interest including fees	$	74,549	$	70,700	$	216,854	$	197,337
Investments		1,828		1,652		4,869		4,742
Total interest income		76,377		72,352		221,723		202,079
Interest expense		20,503		19,193		59,728		50,470
Net interest income		55,874		53,159		161,995		151,609
Provision for credit losses		17,202		20,153		54,937		55,345
Net interest income after provision for credit losses		38,672		33,006		107,058		96,264
Strategic partnership fees		990		400		2,461		1,206
Gain on sale of loans		—		—		1,304		—
Other non-interest income		1,308		245		2,908		910
Total non-interest income		2,298		645		6,673		2,116
Non-interest expense
Salaries and benefits		5,466		5,035		16,111		14,971
Loan servicing		3,249		3,158		9,696		9,074
Collection costs		1,664		1,604		4,853		4,578
Regulatory fees		680		961		2,610		2,826
Professional fees		492		368		1,694		1,185
Information technology		507		317		1,153		858
Occupancy and equipment		722		193		2,173		626
Other		959		875		2,962		2,685
Total non-interest expense		13,739		12,511		41,252		36,803
Income before income taxes		27,231		21,140		72,479		61,577
Provision for income taxes		7,390		5,661		19,695		16,583
Net income	$	19,841	$	15,479	$	52,784	$	44,994
Less: Preferred stock dividends		2,336		1,512		6,446		4,535
Less: Redemption of Series F preferred shares		3,515		—		3,515		—
Net income attributable to common shareholder	$	13,990	$	13,967	$	42,823	$	40,459


MEDALLION BANK BALANCE SHEETS

	(UNAUDITED)						(UNAUDITED)
(In thousands)	September 30, 2025			December 31, 2024			September 30, 2024
Assets
Cash and federal funds sold	$	112,102		$	126,196		$	148,446
Investment securities, available-for-sale		61,081			54,805			56,754
Loans held for sale, at the lower of amortized cost or fair value		72,918			128,226			—

Loan receivables, inclusive of net deferred loan acquisition cost and fees		2,349,531			2,249,614			2,374,673
Allowance for credit losses		(99,334	)		(91,638	)		(90,784	)
Loans, net		2,250,197			2,157,976			2,283,889
Loan collateral in process of foreclosure		3,353			3,326			3,424
Fixed assets and right-of-use lease assets, net		7,330			9,126			9,275
Deferred tax assets		14,368			14,036			13,338
Accrued interest receivable		16,835			15,083			14,013
Other assets		36,338			40,325			38,472
Total assets	$	2,574,522		$	2,549,099		$	2,567,611
Liabilities and Shareholders’ Equity
Liabilities
Deposits	$	2,055,802		$	2,090,071		$	2,108,132
Short-term borrowings		35,000			35,000			35,000
Accrued interest payable		3,273			5,586			4,880
Income tax payable ⁽¹⁾		21,734			17,951			25,559
Other liabilities		18,720			17,204			17,301
Due to affiliates		921			910			1,038
Total liabilities		2,135,450			2,166,722			2,191,910
Shareholders’ Equity
Series E preferred stock		26,303			26,303			26,303
Series F preferred stock		—			42,485			42,485
Series G preferred stock		73,126			—			—
Common stock		1,000			1,000			1,000
Additional paid in capital		77,500			77,500			77,500
Accumulated other comprehensive loss, net of tax		(3,249	)		(4,480	)		(3,080	)
Retained earnings		264,392			239,569			231,493
Total shareholders’ equity		439,072			382,377			375,701
Total liabilities and shareholders’ equity	$	2,574,522		$	2,549,099		$	2,567,611

(1) The majority of income tax payable is payable to Medallion Financial Corp.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.