Press Releases July 29, 2026 04:05 PM

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

Medallion Bank posts solid Q2 2026 results with increased loan originations and declares quarterly dividend for Series G Preferred Stock

By Leila Farooq
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Medallion Bank reported its Q2 2026 financial results showing net income of $16.0 million, a slight decrease from the previous year, with strong growth in loan originations across its key segments including recreation, home improvement, and fintech strategic partnerships. The bank also declared a quarterly dividend for its Series G Preferred Stock. Despite increases in net interest income and loan portfolios, provisions for credit losses rose and returns on assets and equity dipped compared to last year, reflecting cautious credit management amid growth.

Medallion Bank Reports 2026 Second Quarter Results and Declares Series G Preferred Stock Dividend
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Key Points

  • Recreation loan originations increased 60% year-over-year to $228.5 million; home improvement loan originations surged 137%.
  • Strong portfolio growth: overall loan portfolio grew 18% for recreational loans and 10% for home improvement loans.
  • The bank declared a quarterly dividend of $0.5625 per share on its Series G Preferred Stock, signaling steady shareholder returns.

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

2026 Second Quarter Highlights

  • Net income of $16.0 million, compared to $17.3 million in the prior year quarter.
  • Net income attributable to common shareholder of $13.7 million, compared to $14.7 million in the prior year quarter.
  • Net interest income of $58.1 million, compared to $53.6 million in the prior year quarter. Total non-interest income of $3.0 million in both the current and prior year quarters.
  • Net interest margin of 8.46%, compared to 8.55% in the prior year quarter.
  • Recreation loan originations grew 60% from the prior year quarter to $228.5 million, and the loan portfolio grew 18% to $1.8 billion.
  • Home Improvement loan originations grew 137% from the prior year quarter to $128.6 million, and the loan portfolio grew 10% to $885.6 million.
  • Strategic partnership loan originations grew 47% from the prior year quarter to $247.1 million. During the quarter, the Bank added Together Loans to its growing strategic partnership program.
  • Total provision for credit losses was $21.6 million, compared to $18.7 million in the prior year quarter.
  • Annualized net charge-offs were 2.56% of average loans outstanding, compared to 2.66% in the prior year quarter.
  • Annualized return on average assets and return on average equity were 2.36% and 14.39%, respectively, compared to 2.75% and 16.11%, respectively, for the prior year period.
  • Total assets were $2.8 billion and the Tier 1 leverage ratio was 16.9% at June 30, 2026.

Series G Preferred Stock Dividend

On June 25, 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 October 1, 2026, to holders of record at the close of business on September 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
[email protected] 

MEDALLION BANK
STATEMENTS OF OPERATIONS
(UNAUDITED)         Three Months Ended June 30, Six Months Ended June 30,(In thousands)2026
 2025
 2026
 2025
Interest income       Loan interest including fees$78,613 $71,688 $152,441 $142,305Investments 1,571  1,547  3,035  2,883Total interest income 80,184  73,235  155,476  145,188Interest expense 22,123  19,608  42,860  39,225Net interest income 58,061  53,627  112,616  105,963Provision for credit losses 21,567  18,697  43,630  37,735Net interest income after provision for credit losses 36,494  34,930  68,986  68,228Strategic partnership fees 1,136  787  1,959  1,472Gain on sale of recreation loans 1,281  1,304  1,281  1,304Other non-interest income 573  880  854  1,757Total non-interest income 2,990  2,971  4,094  4,533Non-interest expense       Salaries and benefits 6,438  5,297  12,640  10,645Loan servicing 4,335  3,293  7,872  6,447Collection costs 1,901  1,985  3,810  3,675Insurance including FDIC assessment 1,139  1,219  2,212  2,150Professional fees 897  592  1,880  1,202Information technology 476  324  893  646Depreciation and amortization 612  587  1,204  1,165Occupancy and equipment 163  137  327  286Advertising 128  81  193  124Other 681  614  1,293  1,173Total non-interest expense 16,770  14,129  32,324  27,513Income before income taxes 22,714  23,772  40,756  45,248Provision for income taxes 6,728  6,468  11,765  12,305Net income$15,986 $17,304 $28,991 $32,943Less: Preferred stock dividends 2,335  2,598  4,671  4,110Net income attributable to common shareholder$13,651 $14,706 $24,320 $28,833

MEDALLION BANK
BALANCE SHEETS

 (UNAUDITED)

   (UNAUDITED)

(In thousands)June 30, 2026 December 31, 2025 June 30, 2025Assets     Cash and federal funds sold$128,662  $147,449  $117,345 Investment securities, available-for-sale 69,933   60,183   61,529 Loans held for sale, at the lower of amortized cost or fair value 21,376   15,144   72,490       Loan receivables, inclusive of net deferred loan acquisition cost and fees 2,645,896   2,427,458   2,289,582 Allowance for credit losses (112,356)   (105,519)   (95,462) Loans, net 2,533,540   2,321,939   2,194,120 Repossessed assets(1) 3,031   2,589   3,414 Fixed assets and right-of-use lease assets, net 7,593   8,564   7,972 Deferred tax assets 14,288   14,353   14,647 Accrued interest receivable 20,769   19,265   15,124 Other assets 29,926   25,953   85,418 Total assets$2,829,118  $2,615,439  $2,572,059 Liabilities and Shareholders’ Equity     Liabilities     Deposits$2,293,715  $2,084,265  $2,009,176 Short-term borrowings 50,000   50,000   40,000 Accrued interest payable 2,981   3,488   3,065 Income tax payable(2) 12,325   15,229   26,734 Other liabilities 18,955   11,373   18,406 Due to affiliates 1,127   911   1,037 Total liabilities 2,379,103   2,165,266   2,098,418 Shareholders’ Equity     Series E preferred stock 26,303   26,303   26,303 Series F preferred stock    —   42,485 Series G preferred stock 73,126   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 (3,692)   (3,214)   (3,931) Retained earnings 275,778   275,458   257,158 Total shareholders’ equity 450,015   450,173   473,641 Total liabilities and shareholders’ equity$2,829,118  $2,615,439  $2,572,059 

(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.


Risks

  • Provision for credit losses increased from $18.7 million to $21.6 million, indicating possible credit risk exposure.
  • Return on average assets declined to 2.36% from 2.75%, suggesting potential pressure on profitability.
  • Economic factors impacting consumer lending sectors (recreational vehicles, home improvements) could affect loan performance and institution's financial stability.

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