Medallion Bank Raises $55M in Series G Preferred Stock Offering…

Event summary

Medallion Bank closed a $55M Series G Preferred Stock offering on September 30, 2026, issuing 2.2M shares at $25 per share.
Underwriters have a 30-day option to purchase up to 330,000 additional shares to cover over-allotments.
Proceeds may be used to redeem outstanding Senior Series E Non-Cumulative Perpetual Preferred Stock, subject to FDIC approval.
Medallion Bank remains a wholly owned subsidiary of Medallion Financial Corp. post-offering.

The big picture

Medallion Bank's $55M Series G Preferred Stock offering underscores its strategic focus on strengthening its capital base and potentially restructuring its existing preferred stock. The move comes amid a broader industry trend of financial institutions optimizing their capital structures to enhance flexibility and regulatory compliance. The scale of the offering, coupled with the potential redemption of Series E Preferred Stock, highlights the bank's proactive approach to managing its financial footprint.

What we're watching

Regulatory Approval: Whether the FDIC will approve the redemption of Series E Preferred Stock and the timing of such approval.
Capital Deployment: How Medallion Bank will allocate the net proceeds from the Series G offering, particularly if it chooses to redeem Series E Preferred Stock.
Market Conditions: The impact of broader market conditions on the potential exercise of the underwriters' over-allotment option.