Medallion Bank Reports 2026 Third Quarter Results and Declares Series G Preferred Stock Dividend

Credit-loss provisions increased to $29.8 million from $17.2 million as annualized net charge-offs also rose.

Rhea-AI Summary

Medallion Bank (Nasdaq: MBNKO) reported third-quarter 2026 net income of $11.8 million, down from the prior-year quarter despite higher net interest income. Net income attributable to its common shareholder fell to $9.5 million from $14.0 million. Net interest income rose to $60.0 million from $55.7 million, while credit-loss provisions increased to $29.8 million from $17.2 million.

Recreation and home improvement originations grew 40% and 145% year over year, respectively. Annualized net charge-offs rose to 2.83% from 2.28%. The Bank closed an offering of 2,200,000 Series G preferred shares with a $55.0 million aggregate liquidation amount. It declared a $0.5625-per-share Series G dividend, payable January 4, 2027, to holders of record December 15, 2026. Total assets reached $3.0 billion, with a 17.4% Tier 1 leverage ratio. The Bank is wholly owned by Medallion Financial (Nasdaq: MFIN).

13 points · 1 major

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1 major · 16 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointCompleted Series G preferred offering added capital with an aggregate liquidation amount of $55.0 million. 21% of market cap
• Moderate pointThird-quarter net interest income increased to $60.0 million from $55.7 million a year earlier.
• Moderate pointRecreation loan originations grew 40% year over year to $198.2 million in the third quarter.
• Moderate pointRecreation loan portfolio grew 20% year over year to $1.9 billion, excluding loans held for sale.
• Moderate pointHome improvement originations grew 145% year over year to $146.3 million in the third quarter.
• Moderate pointHome improvement loan portfolio grew 18% year over year to $947.5 million.
• Moderate pointStrategic partnership originations grew 25% year over year to $259.4 million in the third quarter.
• Moderate pointNet loans increased to $2.678 billion from $2.322 billion at December 31, 2025.

5 minor points

• Minor pointThird-quarter non-interest income increased to $2.558 million from $2.466 million a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.New partner rFinance joined during the quarter, with originations beginning in the fourth quarter.
• Minor pointNine-month net interest income increased to $172.616 million from $161.669 million a year earlier.
• Minor pointCash and federal funds sold increased to $170.148 million from $147.449 million at December 31, 2025.
• Minor pointShareholders’ equity increased to $502.889 million from $450.173 million at December 31, 2025.

Negative

• Major pointSeries G issuance added 2,200,000 preferred shares with a $25-per-share liquidation amount ahead of common equity.
• Moderate pointThird-quarter net income fell to $11.8 million from $19.8 million a year earlier.
• Moderate pointThird-quarter credit-loss provisions rose to $29.8 million from $17.2 million a year earlier.
• Moderate pointAnnualized third-quarter net charge-offs rose to 2.83% of average loans outstanding from 2.28% a year earlier.
• Moderate pointThird-quarter non-interest expense increased to $16.404 million from $13.739 million a year earlier.
• Moderate pointShort-term borrowings increased to $75 million from $50 million at December 31, 2025.

10 minor points

• Minor pointThird-quarter common-shareholder income fell to $9.5 million from $14.0 million a year earlier.
• Minor pointThird-quarter net interest margin narrowed to 8.03% from 8.61% a year earlier.
• Minor pointAnnualized third-quarter return on average assets fell to 1.61% from 3.08% a year earlier.
• Minor pointAnnualized third-quarter return on average equity fell to 10.18% from 17.77% a year earlier.
• Minor pointNine-month net income fell to $40.836 million from $52.784 million a year earlier.
• Minor pointNine-month common-shareholder income fell to $33.829 million from $42.823 million a year earlier.
• Minor pointNine-month credit-loss provisions increased to $73.465 million from $54.937 million a year earlier.
• Minor pointNine-month non-interest income declined to $6.652 million from $6.999 million a year earlier.
• Minor pointNine-month non-interest expense increased to $48.728 million from $41.252 million a year earlier.
• Minor pointAccumulated other comprehensive loss widened to $5.240 million from $3.214 million at December 31, 2025.

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SALT LAKE CITY, Oct. 29, 2026 (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, 2026. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

2026 Third Quarter Highlights

• Net income of $11.8 million, compared to $19.8 million in the prior year quarter.
• Net income attributable to common shareholder of $9.5 million, compared to $14.0 million in the prior year quarter.
• Net interest income of $60.0 million, compared to $55.7 million in the prior year quarter. Total non-interest income of $2.6 million, compared to $2.5 million in the prior year quarter.
• Net interest margin of 8.03%, compared to 8.61% in the prior year quarter.
• Recreation loan originations grew 40% from the prior year quarter to $198.2 million, and the loan portfolio grew 20% to $1.9 billion, exclusive of loans held for sale.
• Home Improvement loan originations grew 145% from the prior year quarter to $146.3 million, and the loan portfolio grew 18% to $947.5 million.
• Strategic partnership loan originations grew 25% from the prior year quarter to $259.4 million. During the quarter, the Bank added rFinance to its growing strategic partnership program, with originations beginning in the fourth quarter.
• Total provision for credit losses was $29.8 million, compared to $17.2 million in the prior year quarter. The current quarter provision for credit losses included $5.7 million related to increased allowance for credit losses tied to consumer loan growth, compared to $1.9 million in the prior year quarter.
• Annualized net charge-offs in the quarter were 2.83% of average loans outstanding, compared to 2.28% in the prior year quarter.
• Annualized return on average assets and return on average equity were 1.61% and 10.18%, respectively, compared to 3.08% and 17.77%, respectively, for the prior year quarter, reflecting significant loan growth.
• Total assets were $3.0 billion and the Tier 1 leverage ratio was 17.4% at September 30, 2026.
• Closed a public offering of 2,200,000 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 $55.0 million.
  
  

Series G Preferred Stock Dividend

On October 29, 2026, 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 4, 2027, to holders of record at the close of business on December 15, 2026.

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

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, 2025, 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)	2026			2025			2026			2025
Interest income
Loan interest including fees	$	83,006		$	74,549		$	235,447		$	216,854
Investments		1,992			1,660			5,027			4,543
Total interest income		84,998			76,209			240,474			221,397
Interest expense		24,998			20,503			67,858			59,728
Net interest income		60,000			55,706			172,616			161,669
Provision for credit losses		29,835			17,202			73,465			54,937
Net interest income after provision for credit losses		30,165			38,504			99,151			106,732
Strategic partnership fees		762			990			2,722			2,461
Gain on sale of loans		1,682			—			2,963			1,304
Other non-interest income		114			1,476			967			3,234
Total non-interest income		2,558			2,466			6,652			6,999
Non-interest expense
Salaries and benefits		6,248			5,466			18,888			16,111
Loan servicing		3,931			3,249			11,803			9,696
Collection costs		1,759			1,947			5,569			5,622
Insurance including FDIC assessment		1,258			790			3,470			2,940
Professional fees		779			492			2,659			1,694
Information technology		483			507			1,376			1,153
Depreciation and amortization		609			585			1,813			1,750
Occupancy and equipment		138			137			465			423
Advertising		322			73			515			197
Other		877			493			2,170			1,666
Total non-interest expense		16,404			13,739			48,728			41,252
Income before income taxes		16,319			27,231			57,075			72,479
Provision for income taxes		4,474			7,390			16,239			19,695
Net income	$	11,845		$	19,841		$	40,836		$	52,784
Less: Preferred stock dividends		2,336			2,336			7,007			6,446
Less: Redemption of Series F preferred stock - funds paid in excess of carrying value		—			3,515			—			3,515
Net income attributable to common shareholder	$	9,509		$	13,990		$	33,829		$	42,823

MEDALLION BANK BALANCE SHEETS
	(UNAUDITED)								(UNAUDITED)
(In thousands)	September 30, 2026				December 31, 2025				September 30, 2025
Assets
Cash and federal funds sold	$	170,148			$	147,449			$	112,102
Investment securities, available-for-sale		63,853				60,183				61,081
Loans held for sale, at the lower of amortized cost or fair value		15,233				15,144				72,918
Loan receivables, inclusive of net deferred loan acquisition cost and fees		2,800,461				2,427,458				2,349,531
Allowance for credit losses		(122,635	)			(105,519	)			(99,334	)
Loans, net		2,677,826				2,321,939				2,250,197
Repossessed assets(1)		3,422				2,589				3,353
Fixed assets and right-of-use lease assets, net		7,204				8,564				7,330
Deferred tax assets		16,036				14,353				14,368
Accrued interest receivable		21,738				19,265				16,835
Other assets		28,390				25,953				36,338
Total assets	$	3,003,850			$	2,615,439			$	2,574,522
Liabilities and Shareholders’ Equity
Liabilities
Deposits	$	2,386,276			$	2,084,265			$	2,055,802
Short-term borrowings		75,000				50,000				35,000
Accrued interest payable		2,459				3,488				3,273
Income tax payable(2)		17,919				15,229				21,734
Other liabilities		18,541				11,373				18,720
Due to affiliates		766				911				921
Total liabilities		2,500,961				2,165,266				2,135,450
Shareholders’ Equity
Series E preferred stock		26,303				26,303				26,303
Series G preferred stock		125,039				73,126				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		(5,240	)			(3,214	)			(3,249	)
Retained earnings		278,287				275,458				264,392
Total shareholders’ equity		502,889				450,173				439,072
Total liabilities and shareholders’ equity	$	3,003,850			$	2,615,439			$	2,574,522

(1)    Formerly described as loan collateral in process of foreclosure.
(2)    The majority of income tax payable is payable to Medallion Financial Corp., pursuant to a tax sharing agreement.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Medallion Bank’s third-quarter 2026 earnings?

Medallion Bank earned $11.8 million in the third quarter of 2026, compared with $19.8 million a year earlier. Net income attributable to its common shareholder was $9.5 million, compared with $14.0 million. These are the Bank’s results and are not necessarily indicative of parent Medallion Financial’s results for the same period.

When will Medallion Bank pay its Series G preferred dividend?

The $0.5625-per-share Series G preferred dividend is payable January 4, 2027, to holders of record at the close of business on December 15, 2026. The Series G shares trade on the Nasdaq Capital Market under MBNKO.

How much of Medallion Bank’s third-quarter 2026 credit-loss provision related to loan growth?

The third-quarter provision included $5.7 million related to an increased allowance for credit losses tied to consumer loan growth, compared with $1.9 million in the prior-year quarter.