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

SALT LAKE CITY, July 30, 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 June 30, 2025. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

2025 Second Quarter Highlights

Net income of $17.3 million, compared to $15.0 million in the prior year quarter.
Net interest income of $53.9 million, compared to $50.2 million in the prior year quarter. Total non-interest income of $2.7 million, compared to $0.9 million in the prior year quarter.
Net interest margin of 8.54%, compared to 8.55% in the prior year quarter.
Total provision for credit losses was $18.7 million, compared to $18.2 million in the prior year quarter.
Annualized net charge-offs were 2.66% of average loans outstanding, compared to 2.31% in the prior year quarter.
Annualized return on assets and return on equity were 2.75% and 16.11%, respectively, compared to 2.57% and 16.77%, respectively, for the prior year period.
The total loan portfolio grew 1% from June 30, 2024 to $2.3 billion as of June 30, 2025.
Closed a public offering of 3,100,000 shares of Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series G, par value $1.00 per share, with a liquidation amount of $25 per share and an aggregate liquidation amount of $77.5 million.
Total assets were $2.6 billion and the Tier 1 leverage ratio was 19.3% at June 30, 2025. The Series F preferred stock, which was redeemed on July 1, 2025, contributed 171 basis points to the Tier 1 leverage ratio as of June 30, 2025.

Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “Earnings grew to $17.3 million in the second quarter, but the highlight for the quarter was secondary and capital market activity. As previously reported, we completed an initial sale of recreation loans, then completed a $77.5 million Series G preferred stock offering and announced the redemption of $46 million of our Series F preferred securities.

While demand for both recreation and home improvement loans recovered slightly from the first quarter, overall volumes remained moderate. Strategic partnership volumes continued to grow, reaching $169 million in the second quarter, 24% higher than the first quarter’s $136 million. Charge-offs were up from the prior year quarter and delinquency fell consistent with our seasonal pattern. Notably, the delinquency rate in our home improvement loan portfolio is now at its lowest level since the second quarter of 2023. We are pleased with our second quarter results and believe the added capital establishes a solid foundation for the rest of 2025 and beyond.”

Recreation Lending Segment

Excluding loans held for sale, the Bank’s recreation loan portfolio size fell 0.8% to $1.486 billion as of June 30, 2025, compared to $1.497 billion at June 30, 2024. Loan originations were $142.8 million, compared to $209.6 million in the prior year quarter.
On April 30, 2025, the Bank closed a sale of $52.8 million in recreation loans held for sale. The total proceeds received, which included the principal amount outstanding, a purchase premium and accrued but unpaid interest, were $55.9 million.
Recreation loans were 65% of loans receivable as of June 30, 2025, compared to 66% at June 30, 2024.
Net interest income was $39.8 million, compared to $37.6 million in the prior year quarter.
Delinquencies 30 days or more past due were $65.7 million, or 4.42%, of recreation loans as of June 30, 2025, compared to $54.3 million, or 3.63%, at June 30, 2024.
Annualized net charge-offs were 3.25% of average recreation loans outstanding, compared to 2.99% in the prior year quarter.
The provision for recreation credit losses was $15.3 million and the allowance for credit losses was 5.05% of the outstanding balance, compared to $15.8 million and 4.35% of the outstanding balance in the prior year quarter.

Home Improvement Lending Segment

The Bank’s home improvement loan portfolio grew 4% to $803.5 million as of June 30, 2025, compared to $773.2 million at June 30, 2024. Loan originations were $54.3 million, compared to $68.0 million in the prior year quarter.
Home improvement loans were 35% of loans receivable as of June 30, 2025, compared to 34% at June 30, 2024.
Net interest income was $13.6 million, compared to $12.1 million in the prior year quarter.
Delinquencies 30 days or more past due were $6.9 million, or 0.86%, of home improvement loans as of June 30, 2025, essentially unchanged from $6.9 million, or 0.90%, at June 30, 2024.
Annualized net charge-offs were 1.87% of average home improvement loans outstanding, compared to 1.49% in the prior year quarter.
The provision for home improvement credit losses was $3.9 million and the allowance for credit losses was 2.54% of the outstanding balance, compared to $3.3 million and 2.38% of the outstanding balance in the prior year quarter.

Series F Preferred Stock Dividend

The Series F Preferred Stock was fully redeemed on July 1, 2025, and no further dividends will be paid.

Series G Preferred Stock Dividend

On July 24, 2025, the Bank’s Board of Directors declared a quarterly cash dividend of $0.80625 per share (calculated from date of issuance on May 22, 2025 through September 30, 2025) 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 October 1, 2025, to holders of record at the close of business on September 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 June 30,				Six Months Ended June 30,
(In thousands)		2025		2024		2025		2024
Interest income
Loan interest including fees	$	71,688	$	65,213	$	142,305	$	126,637
Investments		1,824		1,546		3,041		3,090
Total interest income		73,512		66,759		145,346		129,727
Interest expense		19,608		16,524		39,225		31,277
Net interest income		53,904		50,235		106,121		98,450
Provision for credit losses		18,697		18,190		37,735		35,192
Net interest income after provision for credit losses		35,207		32,045		68,386		63,258
Strategic partnership fees		787		480		1,472		806
Gain on sale of loans		1,304		—		1,304		—
Other non-interest income		603		389		1,599		665
Total non-interest income		2,694		869		4,375		1,471
Non-interest expense
Salaries and benefits		5,297		4,953		10,645		9,937
Loan servicing		3,293		3,049		6,447		5,916
Collection costs		1,697		1,569		3,189		2,974
Regulatory fees		1,109		888		1,930		1,865
Professional fees		592		385		1,202		817
Information technology		324		273		646		541
Occupancy and equipment		724		226		1,451		433
Other		1,093		1,059		2,003		1,809
Total non-interest expense		14,129		12,402		27,513		24,292
Income before income taxes		23,772		20,512		45,248		40,437
Provision for income taxes		6,468		5,476		12,305		10,922
Net income	$	17,304	$	15,036	$	32,943	$	29,515
Less: Preferred stock dividends		2,598		1,512		4,110		3,024
Net income attributable to common shareholder	$	14,706	$	13,524	$	28,833	$	26,491

MEDALLION BANK BALANCE SHEETS
	(UNAUDITED)						(UNAUDITED)
(In thousands)	June 30, 2025			December 31, 2024			June 30, 2024
Assets
Cash and federal funds sold	$	117,345		$	126,196		$	119,457
Investment securities, available-for-sale		61,529			54,805			55,830
Loans held for sale, at the lower of amortized cost or fair value		72,490			128,226			—

Loan receivables, inclusive of net deferred loan acquisition cost and fees		2,289,583			2,249,614			2,274,740
Allowance for credit losses		(95,462	)		(91,638	)		(84,213	)
Loans, net		2,194,121			2,157,976			2,190,527
Loan collateral in process of foreclosure		3,414			3,326			3,103
Fixed assets and right-of-use lease assets, net		7,972			9,126			8,850
Deferred tax assets		14,647			14,036			12,866
Accrued interest receivable		15,124			15,083			13,203
Other assets		85,417			40,325			39,556
Total assets	$	2,572,059		$	2,549,099		$	2,443,392
Liabilities and Shareholders’ Equity
Liabilities
Deposits	$	2,009,176		$	2,090,071		$	2,006,782
Short-term borrowings		40,000			35,000			25,000
Accrued interest payable		3,065			5,586			5,281
Income tax payable ⁽¹⁾		26,734			17,951			21,127
Other liabilities		18,406			17,204			17,983
Due to affiliates		1,037			910			983
Total liabilities		2,098,418			2,166,722			2,077,156
Shareholders’ Equity
Series E preferred stock		26,303			26,303			26,303
Series F preferred stock		42,485			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		(3,931	)		(4,480	)		(4,578	)
Retained earnings		257,158			239,569			223,526
Total shareholders’ equity		473,641			382,377			366,236
Total liabilities and shareholders’ equity	$	2,572,059		$	2,549,099		$	2,443,392
(1) The majority of income tax payable is payable to Medallion Financial Corp.

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