Medallion Financial Corp.: Medallion Bank Reports 2025 Fourth Quarter and Full-Year Results and Declares Series G Preferred Stock Dividend

SALT LAKE CITY, Jan. 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 and year ended December 31, 2025. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

2025 Fourth Quarter Highlights

• Net income of $19.4 million, compared to $15.6 million in the prior year quarter.
• Net interest income of $55.9 million, compared to $53.1 million in the prior year quarter. Total non-interest income of $11.7 million, compared to less than $0.1 million in the prior year quarter, largely due to the sale of the Bank's remaining taxi medallion assets to an affiliate in the fourth quarter 2025.
• Net interest margin of 8.51%, compared to 8.28% in the prior year quarter.
• Strategic partnership loan originations grew to $258.3 million in the quarter, up from $123.7 million in the prior year quarter.
• Total provision for credit losses was $26.3 million, compared to $20.5 million in the prior year quarter. Total provision includes a non-recurring $2.6 million charge to reclassify recreation loans from held for sale to loans receivable, along with provisions associated with portfolio growth.
• Annualized net charge-offs were 3.35% of average loans outstanding, compared to 3.28% in the prior year quarter.
• Annualized return on assets and return on equity were 2.99% and 17.34%, respectively, compared to 2.44% and 16.43%, respectively, for the prior year period.
  

2025 Full-Year Highlights

• Net income of $72.2 million, compared to net income of $60.6 million in 2024, representing an increase of 19%.
• Net interest income of $217.9 million, compared to $204.7 million in 2024.
• Net interest margin of 8.51%, compared to 8.48% in 2024.
• Strategic partnership loan originations grew to $771.6 million in 2025, up from $203.6 million in 2024.
• Total provision for credit losses was $81.2 million, compared to $75.8 million in 2024.
• Total net charge-offs were 2.92% of average loans outstanding, compared to 2.82% in 2024.
• Return on assets and return on equity were 2.84% and 17.05%, respectively, compared to 2.52% and 16.62% in 2024, respectively.
• The total loan portfolio size was $2.4 billion as of December 31, 2025, compared to $2.2 billion as of December 31, 2024.
• Total assets were $2.6 billion and the Tier 1 leverage ratio was 17.8% at December 31, 2025.
• The issuance of the Series G preferred stock and redemption of the Series F preferred stock increased the Bank's capital by a net $27.1 million. Total capital increased to $450.2 million as of December 31, 2025 from $382.4 million as of December 31, 2024.
  

Donald Poulton, Chief Executive Officer of Medallion Bank, stated, "Earnings grew to $19.4 million in the fourth quarter compared to the prior year period, due in part to the sale of the Bank's remaining taxi medallion asset exposure to an affiliate for a net gain of approximately $5.5 million. Recreation loan volume grew substantially over the prior year quarter as we adjusted pricing to better meet market demand, though the growth was moderated by prudent underwriting changes made to manage credit risk. Home improvement loan originations remain down compared to 2024, but credit approvals increased substantially in the quarter which historically has been an indicator of future volume growth. Strategic partnership loan activity continued to grow with originations of $258 million in the quarter. Charge-offs were up from the prior year quarter, with increases in recreation losses largely offset by a significant reduction in home improvement losses as our loan origination quality improved. Loan delinquency rates in the quarter fell compared to the prior year for both recreation and home improvement loans."

Recreation Lending Segment

• The Bank's recreation loan portfolio size was $1.617 billion as of December 31, 2025, compared to $1.422 billion at December 31, 2024. Loan originations were $97.2 million in the fourth quarter 2025, compared to $72.2 million in the prior year quarter. For the year, loan originations were $468.5 million, compared to $526.6 million in 2024.
• Recreation loans were 67% of loans receivable as of December 31, 2025, compared to 63% at December 31, 2024.
• Net interest income was $41.8 million in the fourth quarter 2025, compared to $39.4 million in the prior year quarter. For the year, net interest income was $162.1 million, compared to $152.4 million in 2024.
• Delinquencies 30 days or more past due were $92.7 million, or 5.93%, of recreation loans as of December 31, 2025, compared to $84.6 million, or 6.15%, at December 31, 2024.
• Annualized net charge-offs were 4.53% of average recreation loans outstanding in the fourth quarter 2025, compared to 4.35% in the prior year quarter. For the year, total net charge-offs were 3.95% of average recreation loans outstanding, compared to 3.72% in 2024.
• The provision for recreation credit losses was $25.0 million in the fourth quarter 2025, compared to $17.7 million in the prior year quarter. The increase includes $2.6 million resulting from the reclassification of $56.2 million of loans from held for sale to loans receivable, following our decision to retain the pool of loans. For the year, the provision for recreation credit losses was $73.9 million, compared to $68.0 million in 2024.
• The allowance for credit losses was 5.32% of the outstanding recreation loan balance, compared to 5.00% of the outstanding recreation loan balance as of December 31, 2024.
  

Home Improvement Lending Segment

• The Bank's home improvement loan portfolio size was $810.2 million as of December 31, 2025, compared to $827.2 million at December 31, 2024. Loan originations were $61.7 million in the fourth quarter 2025, compared to $82.5 million in the prior year quarter. For the year, loan originations were $224.5 million, compared to $298.6 million in 2024.
• Home improvement loans were 33% of loans receivable as of December 31, 2025, compared to 37% at December 31, 2024.
• Net interest income was $13.6 million in the fourth quarter 2025, compared to $13.1 million in the prior year quarter. For the year, net interest income was $54.2 million, compared to $50.2 million in 2024.
• Delinquencies 30 days or more past due were $8.6 million, or 1.05%, of home improvement loans as of December 31, 2025, down from $9.2 million, or 1.11%, at December 31, 2024.
• Annualized net charge-offs were 1.07% of average home improvement loans outstanding in the fourth quarter 2025, compared to 1.75% in the prior year quarter. For the year, total net charge-offs were 1.38% of average home improvement loans outstanding, compared to 1.78% in 2024.
• The provision for home improvement credit losses was $1.3 million in the fourth quarter 2025, compared to $4.4 million in the prior year quarter. The decrease was driven by a shifted mix toward higher quality assets and a change to our pre-payment speed calculation methodology. For the year, the provision for home improvement credit losses was $10.2 million, compared to $13.5 million in 2024.
• The allowance for credit losses was 2.41% of the outstanding home improvement loan balance, compared to 2.48% of the outstanding home improvement loan balance as of December 31, 2024.
  

Series G Preferred Stock Dividend

On January 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 April 1, 2026, to holders of record at the close of business on March 16, 2026.

Other Information

During the fourth quarter, we reclassified $56.2 million of recreation loans from held for sale to loans receivable. All financial comparisons and ratios, such as delinquency and net charge off ratios, related to the loan portfolio exclude loans classified as held for sale and reflect the loan status as of the end of the applicable reporting period.

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
[e-mail]

MEDALLION BANK STATEMENTS OF OPERATIONS
	(UNAUDITED)				(UNAUDITED)				(UNAUDITED)
	Three Months Ended December 31,								Year Ended December 31,
(In thousands)	2025				2024				2025				2024
Interest income
Loan interest including fees	-	75,067			-	71,577			-	291,921			-	268,914
Investments		1,489				1,564				6,358				6,306
Total interest income		76,556				73,141				298,279				275,220
Interest expense		20,637				20,039				80,365				70,509
Net interest income		55,919				53,102				217,914				204,711
Provision for credit losses		26,272				20,500				81,209				75,845
Net interest income after provision for credit losses		29,647				32,602				136,705				128,866
Strategic partnership fees		1,160				575				3,621				1,781
Gain on sale of recreation loans		-				-				1,304				-
Gain on taxi medallion assets sold to a related party		7,581				-				7,581				-
Other non-interest income		2,932				(559	-			5,840				353
Total non-interest income		11,673				16				18,346				2,134
Non-interest expense
Salaries and benefits		5,698				5,014				21,809				19,985
Loan servicing		3,015				3,173				12,711				12,248
Credit and collection costs		1,854				1,613				7,476				6,704
Insurance including FDIC assessment		1,135				1,119				4,075				4,397
Professional fees		671				508				2,365				1,694
Information technology		373				329				1,526				1,186
Depreciation and amortization		589				404				2,339				587
Occupancy and equipment		221				137				644				580
Advertising		146				158				343				356
Other		740				534				2,406				2,057
Total non-interest expense		14,442				12,989				55,694				49,794
Income before income taxes		26,878				19,629				99,357				81,206
Provision for income taxes		7,477				4,040				27,172				20,624
Net income	-	19,401			-	15,589			-	72,185			-	60,582
Less: Preferred stock dividends		2,335				1,512				8,781				6,047
Less: Redemption of Series F preferred shares		-				-				3,515				-
Net income attributable to common shareholder	-	17,066			-	14,077			-	59,889			-	54,535

MEDALLION BANK BALANCE SHEETS
	(UNAUDITED)
(In thousands)	December 31, 2025				December 31, 2024
Assets
Cash and federal funds sold	-	147,449			-	126,196
Investment securities, available-for-sale		60,183				54,805
Loans held for sale, at the lower of amortized cost or fair value		15,144				128,226
Loan receivables, inclusive of net deferred loan acquisition cost and fees		2,427,458				2,249,614
Allowance for credit losses		(105,519	-			(91,638	-
Loans, net		2,321,939				2,157,976
Loan collateral in process of foreclosure		2,589				3,326
Fixed assets and right-of-use lease assets, net		8,564				9,126
Deferred tax assets		14,353				14,036
Accrued interest receivable		19,265				15,083
Other assets		25,953				40,325
Total assets	-	2,615,439			-	2,549,099
Liabilities and Shareholders' Equity
Liabilities
Deposits	-	2,084,265			-	2,090,071
Short-term borrowings		50,000				35,000
Accrued interest payable		3,488				5,586
Income tax payable(1)		15,229				17,951
Other liabilities		11,373				17,204
Due to affiliates		911				910
Total liabilities		2,165,266				2,166,722
Shareholders' Equity
Series E preferred stock		26,303				26,303
Series F preferred stock		-				42,485
Series G preferred stock		73,126				-
Common stock		1,000				1,000
Additional paid in capital		77,500				77,500
Accumulated other comprehensive loss, net of tax		(3,214	-			(4,480	-
Retained earnings		275,458				239,569
Total shareholders' equity		450,173				382,377
Total liabilities and shareholders' equity	-	2,615,439			-	2,549,099

(1)	The majority of income tax payable is payable to Medallion Financial Corp, pursuant to a tax sharing agreement.