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
[email protected]
| 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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