Medallion Financial Corp. Reports 2010 First Quarter Results
Medallion Financial Corp. (NASDAQ:TAXI), a specialty finance company with a leading position servicing the taxicab industry and other niche markets, announced that net increase in net assets resulting from operations, was $109,000 or $0.01 per diluted common share in the 2010 first quarter, down from $1,889,000 or $0.11 per share in the 2009 first quarter. Net investment income after income taxes was $2,232,000, or $0.13 per share, the highest in five quarters, up from $1,909,000, or $0.11 per share in the 2009 first quarter. Net investment income after income taxes on a combined basis with Medallion Bank was $7,022,000 or $0.40 per share in the quarter, up from $5,761,000 or $0.33 per share in the year ago quarter.
Medallion’s on balance sheet taxicab medallion loan portfolio was $311,000,000 at the end of the 2010 first quarter, down from $400,000,000 at the end of the 2009 first quarter. The decrease reflected our ability to participate a portion of these high-quality loans to other financial institutions which desire safe and profitable loan growth, enabling Medallion to earn a greater spread on the retained business, while maintaining the customer relationship. In addition, we continue to book loans into Medallion Bank, which is not consolidated. Our on balance sheet commercial loan portfolio was $74,000,000 at quarter end, down from $91,000,000.
Medallion’s managed taxicab medallion loan portfolio, which includes Medallion Bank, our unconsolidated wholly-owned portfolio investment, and loans serviced for or by third parties, was $589,000,000, up from $585,000,000 a year ago. Our managed commercial loan portfolio was $133,000,000, down from $166,000,000 a year ago. Medallion Bank’s consumer loan portfolio decreased to $182,000,000, down from $188,000,000 a year ago. Total assets under management decreased to $1,027,000,000, down from $1,069,000,000 a year ago.
Andrew Murstein, President of Medallion stated, “We continue to be pleased with our core operating earnings and our continuing trends of increased spreads and low delinquency levels. During this quarter, New York City and Chicago medallion prices also continued to rise. It is great to have this rock solid foundation of medallion loans in our portfolio which have never experienced a single loss on any loan we have originated in the history of the company.
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