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

InvestorRelations@medallion.com

 
                               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 

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