Medallion Bank Reports 2025 First Quarter Results and Declares Series F Preferred Stock Dividend

SALT LAKE CITY, April 30, 2025 (GLOBE NEWSWIRE) -- Medallion Bank (NASDAQ:MBNKP, 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 March 31, 2025. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (NASDAQ:MFIN).

2025 First Quarter Highlights

• Net income of $15.6 million, compared to $14.5 million in the prior year quarter.
• Net interest income of $52.2 million, compared to $48.2 million in the prior year quarter.
• Net interest margin of 8.35%, compared to 8.59% in the prior year quarter.
• Total provision for credit losses was $19.0 million, compared to $17.0 million in the prior year quarter.
• Annualized net charge-offs were 3.41% of average loans outstanding, compared to 3.38% in the prior year quarter.
• Annualized return on assets and return on equity were 2.51% and 16.49%, respectively, compared to 2.59% and 16.47%, respectively, for the prior year period.
• The total loan portfolio grew 6% from March 31, 2024 to $2.2 billion as of March 31, 2025.
• Total assets were $2.5 billion and the Tier 1 leverage ratio was 16.0% at March 31, 2025.

Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, "Our performance was strong in the first quarter. Our earnings were $15.6 million, which was 8% higher than the prior year quarter and in line with the fourth quarter 2024. Economic uncertainty reduced demand in both recreation and home improvement lending, while strategic partnership volumes grew to $136 million from $124 million in the fourth quarter as those relationships continued to mature. Charge-offs and delinquencies were down from their year-end peaks, but given recent market volatility, and potential tariff and economic changes, we added qualitative factors to our reserve that increased credit loss provisions. Following the end of the quarter, we completed an initial sale of $53 million in recreation loans at a premium to par value. We were pleased with the execution of this sale and continue to monitor the market for potential loan sale opportunities. Overall, we view the quarter as a good mix of conservative origination volume and improving credit performance to start 2025."

Recreation Lending Segment

• Excluding loans held for sale, the Bank's recreation loan portfolio grew 5% to $1.432 billion as of March 31, 2025, compared to $1.365 billion at March 31, 2024. Loan originations were $86.8 million, compared to $105.8 million in the prior year quarter.
• Recreation loans were 64% of loans receivable as of March 31, 2025, essentially unchanged from 64% at March 31, 2024.
• Net interest income was $39.2 million, compared to $35.6 million in the prior year quarter.
• Delinquencies 30 days or more past due were $68.2 million, or 4.76%, of recreation loans as of March 31, 2025, compared to $55.5 million, or 4.06%, at March 31, 2024.
• Annualized net charge-offs were 4.67% of average recreation loans outstanding, compared to 4.36% in the prior year quarter.
• The provision for recreation credit losses was $16.9 million and the allowance for credit losses was 5.00% of the outstanding balance, compared to $17.0 million and 4.40% of the outstanding balance in the prior year quarter.

Home Improvement Lending Segment

• The Bank's home improvement loan portfolio grew 8% to $812.4 million as of March 31, 2025, compared to $752.3 million at March 31, 2024. Loan originations were $48.8 million, compared to $51.6 million in the prior year quarter.
• Home improvement loans were 36% of loans receivable as of March 31, 2025, compared to 35% at March 31, 2024.
• Net interest income was $13.3 million, compared to $12.4 million in the prior year quarter.
• Delinquencies 30 days or more past due were $8.3 million, or 1.02%, of home improvement loans as of March 31, 2025, compared to $6.5 million, or 0.87%, at March 31, 2024.
• Annualized net charge-offs were 1.55% of average home improvement loans outstanding, compared to 2.12% in the prior year quarter.
• The provision for home improvement credit losses was $2.8 million and the allowance for credit losses was 2.49% of the outstanding balance, compared to $0.9 million and 2.38% of the outstanding balance in the prior year quarter.

Series F Preferred Stock Dividend

On April 24, 2025, the Bank's Board of Directors declared a quarterly cash dividend of $0.67982 per share on the Bank's Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, which trades on the Nasdaq Capital Market under the ticker symbol "MBNKP." The dividend is based on the dividend rate of 10.75761%, as determined by the Bank's calculation agent, and is payable on July 1, 2025, to holders of record at the close of business on June 16, 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 Relations

212-328-2176

[email protected]

MEDALLION BANK STATEMENTS OF OPERATIONS (UNAUDITED)
	Three Months Ended March 31,
(In thousands)		2025			2024
Interest income
Loan interest including fees	$	70,617		$	61,424
Investments		1,217			1,544
Total interest income		71,834			62,968
Interest expense		19,617			14,753
Net interest income		52,217			48,215
Provision for credit losses		19,038			17,002
Net interest income after provision for credit losses		33,179			31,213
Other non-interest income		1,681			602
Non-interest expense
Salaries and benefits		5,348			4,984
Loan servicing		3,154			2,867
Collection costs		1,492			1,404
Regulatory fees		821			977
Professional fees		610			432
Information technology		322			267
Occupancy and equipment		727			207
Other		910			752
Total non-interest expense		13,384			11,890
Income before income taxes		21,476			19,925
Provision for income taxes		5,837			5,445
Net income	$	15,639		$	14,480
Less: Preferred stock dividends		1,512			1,512
Net income attributable to common shareholder	$	14,127		$	12,968

MEDALLION BANK
BALANCE SHEETS
	(UNAUDITED)								(UNAUDITED)
(In thousands)	March 31, 2025				December 31, 2024				March 31, 2024
Assets
Cash and federal funds sold	$	115,108			$	126,196			$	136,705
Investment securities, available-for-sale		60,424				54,805				53,038
Loans held for sale, at the lower of amortized cost or fair value		124,733				128,226				—
Loan receivables, inclusive of net deferred loan acquisition cost and fees		2,243,991				2,249,614				2,121,180
Allowance for credit losses		(91,807	)			(91,638	)			(78,648	)
Loans, net		2,152,184				2,157,976				2,042,532
Loan collateral in process of foreclosure		3,174				3,326				3,263
Fixed assets and right-of-use lease assets, net		8,543				9,126				8,417
Deferred tax assets		13,860				14,036				12,500
Accrued interest receivable		14,339				15,083				13,405
Other assets		38,598				40,325				36,656
Total assets	$	2,530,963			$	2,549,099			$	2,306,516
Liabilities and Shareholders' Equity
Liabilities
Deposits and other funds borrowed	$	2,087,828			$	2,125,071			$	1,899,061
Accrued interest payable		4,557				5,586				4,191
Income tax payable		23,853				17,951				26,336
Other liabilities		22,702				17,204				17,837
Due to affiliates		881				910				481
Total liabilities		2,139,821				2,166,722				1,947,906
Shareholder's Equity
Series E Preferred stock		26,303				26,303				26,303
Series F Preferred stock		42,485				42,485				42,485
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		(3,842	)			(4,480	)			(4,680	)
Retained earnings		247,696				239,569				216,002
Total shareholders' equity		391,142				382,377				358,610
Total liabilities and shareholders' equity	$	2,530,963			$	2,549,099			$	2,306,516