Medallion Bank Reports 2026 Third Quarter Results and Declares Series G Preferred Stock Dividend

Medallion Bank Reports 2026 Third Quarter Results and Declares Series G Preferred Stock Dividend GlobeNewswire October 29, 2026

SALT LAKE CITY, Oct. 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 ended September 30, 2026. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

2026 Third Quarter Highlights

Net income of $11.8 million, compared to $19.8 million in the prior year quarter.
Net income attributable to common shareholder of $9.5 million, compared to $14.0 million in the prior year quarter.
Net interest income of $60.0 million, compared to $55.7 million in the prior year quarter. Total non-interest income of $2.6 million, compared to $2.5 million in the prior year quarter.
Net interest margin of 8.03%, compared to 8.61% in the prior year quarter.
Recreation loan originations grew 40% from the prior year quarter to $198.2 million, and the loan portfolio grew 20% to $1.9 billion, exclusive of loans held for sale.
Home Improvement loan originations grew 145% from the prior year quarter to $146.3 million, and the loan portfolio grew 18% to $947.5 million.
Strategic partnership loan originations grew 25% from the prior year quarter to $259.4 million. During the quarter, the Bank added rFinance to its growing strategic partnership program, with originations beginning in the fourth quarter.
Total provision for credit losses was $29.8 million, compared to $17.2 million in the prior year quarter. The current quarter provision for credit losses included $5.7 million related to increased allowance for credit losses tied to consumer loan growth, compared to $1.9 million in the prior year quarter.
Annualized net charge-offs in the quarter were 2.83% of average loans outstanding, compared to 2.28% in the prior year quarter.
Annualized return on average assets and return on average equity were 1.61% and 10.18%, respectively, compared to 3.08% and 17.77%, respectively, for the prior year quarter, reflecting significant loan growth.
Total assets were $3.0 billion and the Tier 1 leverage ratio was 17.4% at September 30, 2026.
Closed a public offering of 2,200,000 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 $55.0 million.

Series G Preferred Stock Dividend

On October 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 January 4, 2027, to holders of record at the close of business on December 15, 2026.

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

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, 2025, 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)	2026		2025		2026		2025
Interest income
Loan interest including fees	$	83,006	$	74,549	$	235,447	$	216,854
Investments		1,992		1,660		5,027		4,543
Total interest income		84,998		76,209		240,474		221,397
Interest expense		24,998		20,503		67,858		59,728
Net interest income		60,000		55,706		172,616		161,669
Provision for credit losses		29,835		17,202		73,465		54,937
Net interest income after provision for credit losses		30,165		38,504		99,151		106,732
Strategic partnership fees		762		990		2,722		2,461
Gain on sale of loans		1,682		—		2,963		1,304
Other non-interest income		114		1,476		967		3,234
Total non-interest income		2,558		2,466		6,652		6,999
Non-interest expense
Salaries and benefits		6,248		5,466		18,888		16,111
Loan servicing		3,931		3,249		11,803		9,696
Collection costs		1,759		1,947		5,569		5,622
Insurance including FDIC assessment		1,258		790		3,470		2,940
Professional fees		779		492		2,659		1,694
Information technology		483		507		1,376		1,153
Depreciation and amortization		609		585		1,813		1,750
Occupancy and equipment		138		137		465		423
Advertising		322		73		515		197
Other		877		493		2,170		1,666
Total non-interest expense		16,404		13,739		48,728		41,252
Income before income taxes		16,319		27,231		57,075		72,479
Provision for income taxes		4,474		7,390		16,239		19,695
Net income	$	11,845	$	19,841	$	40,836	$	52,784
Less: Preferred stock dividends		2,336		2,336		7,007		6,446
Less: Redemption of Series F preferred stock - funds paid in excess of carrying value		—		3,515		—		3,515
Net income attributable to common shareholder	$	9,509	$	13,990	$	33,829	$	42,823

MEDALLION BANK BALANCE SHEETS

	(UNAUDITED)						(UNAUDITED)
(In thousands)	September 30, 2026			December 31, 2025			September 30, 2025
Assets
Cash and federal funds sold	$	170,148		$	147,449		$	112,102
Investment securities, available-for-sale		63,853			60,183			61,081
Loans held for sale, at the lower of amortized cost or fair value		15,233			15,144			72,918
Loan receivables, inclusive of net deferred loan acquisition cost and fees		2,800,461			2,427,458			2,349,531
Allowance for credit losses		(122,635	)		(105,519	)		(99,334	)
Loans, net		2,677,826			2,321,939			2,250,197
Repossessed assets⁽¹⁾		3,422			2,589			3,353
Fixed assets and right-of-use lease assets, net		7,204			8,564			7,330
Deferred tax assets		16,036			14,353			14,368
Accrued interest receivable		21,738			19,265			16,835
Other assets		28,390			25,953			36,338
Total assets	$	3,003,850		$	2,615,439		$	2,574,522
Liabilities and Shareholders’ Equity
Liabilities
Deposits	$	2,386,276		$	2,084,265		$	2,055,802
Short-term borrowings		75,000			50,000			35,000
Accrued interest payable		2,459			3,488			3,273
Income tax payable⁽²⁾		17,919			15,229			21,734
Other liabilities		18,541			11,373			18,720
Due to affiliates		766			911			921
Total liabilities		2,500,961			2,165,266			2,135,450
Shareholders’ Equity
Series E preferred stock		26,303			26,303			26,303
Series G preferred stock		125,039			73,126			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		(5,240	)		(3,214	)		(3,249	)
Retained earnings		278,287			275,458			264,392
Total shareholders’ equity		502,889			450,173			439,072
Total liabilities and shareholders’ equity	$	3,003,850		$	2,615,439		$	2,574,522

(1) Formerly described as loan collateral in process of foreclosure.
(2) The majority of income tax payable is payable to Medallion Financial Corp., pursuant to a tax sharing agreement.