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

Rhea-AI Summary

Medallion Bank (Nasdaq: MBNKO) reported third quarter 2025 results with net income of $19.8 million versus $15.5 million a year earlier and net interest income of $55.9 million. The Bank recorded a total provision for credit losses of $17.2 million and annualized net charge-offs of 2.28% of average loans. Total loans were $2.3 billion and total assets were $2.6 billion at September 30, 2025. Strategic partnership originations reached a record $208 million in the quarter. The Board declared a quarterly cash dividend of $0.5625 per share on Series G preferred, payable January 2, 2026 to holders of record December 15, 2025.

Positive

• Net income +27.7% year-over-year to $19.8M
• Record fintech partnership originations of $208M in Q3 2025
• Provision for credit losses down ~14.9% year-over-year to $17.2M

Negative

• Series F redemption reduced capital by $46M in Q3 2025
• Home improvement originations down 38.1% YoY to $59.7M
• Recreation loans 30+ days delinquent rose to 4.97% of recreation portfolio

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.

FAQ

What were Medallion Bank's net income and net interest income for Q3 2025 (MFIN/MBNKO)?

Medallion Bank reported net income $19.8M and net interest income $55.9M for Q3 2025.

How large was Medallion Bank's loan portfolio at September 30, 2025 (MFIN/MBNKO)?

Total loan portfolio was $2.3 billion as of September 30, 2025.

What dividend did Medallion Bank declare on its Series G preferred stock (MBNKO) and when is it payable?

The Board declared a quarterly cash dividend of $0.5625 per share, payable January 2, 2026, record date December 15, 2025.

What was Medallion Bank's provision for credit losses and how did it change year-over-year in Q3 2025?

Total provision for credit losses was $17.2M, down about 14.9% from $20.2M a year earlier.

How did Medallion Bank's strategic partnership originations perform in Q3 2025?

Strategic partnership loan originations reached a record $208M in Q3 2025.

Did Medallion Bank report any notable credit or delinquency trends in Q3 2025?

Recreation delinquencies 30+ days rose to 4.97% of recreation loans while home improvement delinquencies fell to 0.92%.