Medallion Bank Reports 2025 Third Quarter Results and Declares Series G Preferred Stock Dividend
MWN-AI** Summary
Medallion Bank, a wholly owned subsidiary of Medallion Financial Corp., has reported its third-quarter results for 2025, showcasing significant growth in earnings and operational performance. The bank's net income reached $19.8 million for the quarter ending September 30, up from $15.5 million in the same period last year. Key highlights include a net interest income of $55.9 million, an increase from $53.2 million year-over-year, demonstrating robust interest performance supported by a net interest margin of 8.64%.
The bank's total provision for credit losses was reported at $17.2 million, a decrease from $20.2 million in the previous year quarter, while annualized net charge-offs slightly improved to 2.28% of average loans outstanding compared to 2.31% previously. The total loan portfolio stood at $2.3 billion, slightly down from $2.4 billion a year before, with total assets amounting to $2.6 billion.
In terms of their preferred stock, Medallion Bank announced the declaration of a quarterly cash dividend of $0.5625 per share on its Series G Preferred Stock, payable on January 2, 2026. This follows the Bank’s redemption of Series F preferred stock earlier this year, which reduced its capital by $46 million.
CEO Donald Poulton emphasized the resumption of growth in recreational loans alongside stable performance in home improvement loans, noting record loan originations of $208 million through strategic partnerships. Despite challenges, such as a seasonal increase in delinquencies, Poulton expressed confidence in the bank's capabilities, thanks to its diversified lending platform and effective risk management strategies. These results affirm Medallion Bank's strong position as a specialty lender in the consumer finance sector.
MWN-AI** Analysis
Medallion Bank's third quarter results for 2025 indicate robust growth, with a net income rise to $19.8 million from $15.5 million a year ago, driven primarily by strong performance in recreational and home improvement lending. The bank achieved a net interest income of $55.9 million, reflecting a favorable interest margin of 8.64%, yet a slight dip in total loan portfolio size to $2.3 billion highlights the challenges in sustaining growth amidst fluctuations in market conditions.
The recreation lending segment remains a cornerstone for Medallion, comprising 66% of the loan portfolio, although delinquencies have increased to 4.97% from 4.15% year-over-year. Importantly, the annualized net charge-off rate has decreased in this segment, evidencing improved credit management and lower losses, which is a positive signal for potential investors.
Conversely, the home improvement lending segment struggled with originations down to $59.7 million, significantly lower compared to $96.5 million in the previous year. Despite an increase in net interest income here, the overall portfolio size has also diminished slightly. However, reductions in delinquencies and charge-off rates provide a stark contrast and may foretell a recovery as home improvement activities pick up.
The declaration of a $0.5625 dividend on the Series G preferred stock also signals stability and confidence in future earnings, providing income stability for investors who favor dividend yields.
In conclusion, Medallion Bank exhibits a solid financial foundation, with strong earnings growth and effective credit management. Nevertheless, the mixed signals from home improvement loans warrant cautious optimism. Investors should monitor loan origination trends and delinquency rates closely while considering the potential for increased dividends as the bank adapts to market changes. Overall, maintaining a long-term focus in a potentially volatile sector may yield favorable returns.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
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 sa les), 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**
How does Medallion Bank plan to address the decline in home improvement loan originations compared to the prior year quarter, and what strategies are in place to boost performance in this segment in the future, particularly regarding Medallion Financial Corp. MFIN?
With the increase in annualized net charge-offs in the recreation lending segment, what risk management strategies is Medallion Bank employing to mitigate potential losses, and how does this align with the overall strategic direction of Medallion Financial Corp. MFIN?
Given the stable net interest margin increase to 8.64%, what specific factors contributed to this improvement, and how does Medallion Bank intend to maintain or enhance this margin moving forward as part of Medallion Financial Corp. MFIN?
Considering the recent redemption of Series F preferred stock and the issuance of Series G preferred stock, how does Medallion Bank view its capital structure moving forward, and what implications does this have for investors in Medallion Financial Corp. MFIN?
**MWN-AI FAQ is based on asking OpenAI questions about Medallion Bank Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock Series G par value $1.00 per share (NASDAQ: MBNKO).
NASDAQ: MBNKO
MBNKO Trading
0.74% G/L:
$25.85 Last:
3,544 Volume:
$25.66 Open:
