Medallion Bank Announces Redemption of Its Series F Preferred Stock

Medallion Bank, an FDIC-insured institution known for providing consumer loans for recreational vehicles, boats, and home improvements, has announced the upcoming redemption of its Series F Preferred Stock. Set to take place on July 1, 2025, the bank will redeem all outstanding shares at a price of $25.00 per share. This announcement was made on May 29, 2025, and is significant as it marks the end of the Series F Preferred Stock's status as part of the bank's financial structure.

The redemption coincides with a scheduled dividend payment date for the preferred stock, meaning that the redemption price will not include any declared and unpaid dividends. However, holders of the Series F Preferred Stock will still receive their regular quarterly dividend on the same date, provided they are on record as of the established cut-off date.

Post-redemption, the Series F Preferred Stock will no longer be considered outstanding, and no further dividends will accrue. Shares are held in book-entry form through The Depository Trust Company, with Equiniti Trust Company, LLC acting as the transfer agent and redemption agent. Investors are advised to contact their bank or broker for details on how to receive their redemption payments.

Medallion Bank, a wholly owned subsidiary of Medallion Financial Corp and headquartered in Salt Lake City, Utah, specializes in consumer lending and also offers loan origination services for fintech partners. As it moves forward with the redemption of the Series F Preferred Stock, the bank continues to solidify its position in the consumer loan market across the United States.

The announcement by Medallion Bank regarding the redemption of its Series F Preferred Stock marks a significant corporate decision that investors should carefully consider. The scheduled redemption on July 1, 2025, at a price of $25.00 per share suggests that the bank aims to streamline its capital structure, potentially signaling confidence in its operating performance and financial position.

Investors holding Series F Preferred Stock will receive their redemption payment, excluding any declared but unpaid dividends, which are also scheduled to be paid on the same day. This approach to redeeming the preferred shares may be interpreted as Medallion Bank managing its cost of capital effectively, particularly in the context of prevailing interest rates and economic conditions.

For current or potential investors, this move alleviates uncertainty typically associated with holding preferred securities. Preferred stocks can be sensitive to interest rate movements, especially those that convert to floating rates. As such, the redemption could provide an opportunity for investors to reassess their strategies and potentially reinvest proceeds into higher-yielding opportunities or into more stable assets if interest rates remain attractive.

Additionally, given the bank's focus on consumer loans for recreational vehicles and home improvements—industries that might display resilience as consumer spending fluctuates—investors may find the underlying operational strategies promising. Should Medallion Bank continue to forge partnerships within the fintech sector, this could also enhance its growth prospects and profitability.

In conclusion, while the redemption of Series F Preferred Stock may present immediate cash benefits to investors, it is crucial for stakeholders to evaluate their broader investment goals in light of the bank's evolving business landscape. Those interested in Medallion Bank should also monitor upcoming financial performance indicators and market conditions to make informed investment decisions moving forward.