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.
