Medallion Bank Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock Series G par value $1.00 per share (MBNKO)

FairStock Score: 84/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Medallion Bank through a banker's lens. It is a small industrial bank with 159 employees, making consumer loans for recreation vehicles, boats, home improvements, and fintech partners. Filed figures show net income of $43.0M in FY2025, $35.9M in FY2024, and $55.1M in FY2023; diluted EPS were $1.78, $1.52, and $2.37. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $7.4M and diluted EPS $0.31, down from fiscal Q2 2025 net income of $11.1M and EPS of $0.46. So the trajectory is uneven and currently weak. FairStock computes ROE of 14.77%, a Piotroski F-Score of 7/9, and a Lynch category of SLOW GROWER—Shrinking, with profit falling -5.6% a year over four years. The market cap is $545.3M; the computed P/B of 0.07 is striking, but for a bank I need CET1, NIM, combined ratio, credit losses, reserve coverage, and deposit costs—none are in the data. The Series G preferred, priced at $23.75 on 2026-10-13, yields 9.47%, but it is non-cumulative and perpetual. A high coupon can be a warning as much as an opportunity if earnings decline or regulators restrict dividends. The niche lending model may have some moat through dealer and fintech relationships, but it also carries credit and partner risk. I see a profitable but shrinking bank with a tempting but not yet proven preferred dividend.

In plain English: Medallion Bank makes consumer loans for recreational vehicles, boats, home improvements, and fintech partners, and it also takes deposits. The bank earns good returns on its capital, but profits have generally slipped over the past four years and the latest filed quarter was weaker than a year earlier. The preferred stock pays a high dividend and trades below its 52-week high, but the price does not look clearly cheap because bank credit risks and capital details are not in the numbers provided.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer