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Medallion Bank Reports 2025 Second Quarter Results and Declares Series G Preferred Stock Dividend

1. Net income rose to $17.3 million, up from $15 million. 2. Total non-interest income increased significantly, now at $2.7 million. 3. Charge-offs rose to 2.66%, indicating credit risk concerns. 4. Recreation loan portfolio decreased by 0.8% versus prior year. 5. Series G preferred stock offering raised $77.5 million in capital.

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Why Bullish?

Increased net income and non-interest income serve as positive financial indicators for MFIN.

How important is it?

Strong earnings growth and strategic capital raises will likely improve MFIN's investor confidence.

Why Short Term?

Immediate financial results likely to influence stock price; potential longer-term growth factors depend on sustained performance.

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July 30, 2025 16:05 ET  | Source: Medallion Financial Corp. 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 Relations212-328-2176InvestorRelations@medallion.com 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 BANKBALANCE SHEETS (UNAUDITED)   (UNAUDITED)(In thousands)June 30, 2025 December 31, 2024 June 30, 2024Assets     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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