Medallion Financial Corp. (Nasdaq: TAXI), a specialty finance company with a leading position servicing the taxicab industry and other niche markets, announced that earnings or net increase in net assets resulting from operations was $4,280,000 or $0.24 per diluted common share in the 2011 first quarter, up $4,171,000 from $109,000 or $0.01 per diluted common share in the 2010 first quarter. Net investment income after income taxes was $2,841,000 or $0.16 per diluted common share in the 2011 first quarter, up $609,000 or 27% from $2,232,000 or $0.13 per diluted common share in the 2010 first quarter.
On a combined basis with Medallion Bank, the Company’s unconsolidated wholly-owned portfolio company, net investment income after taxes was $7,218,000 or $0.41 per diluted common share for the 2011 first quarter, compared to $7,020,000, or $0.40 per diluted common share for the 2010 first quarter. As the Company continues to use Medallion Bank as a primary funding source, it refers more loans to Medallion Bank for origination to take advantage of current short term borrowing rates as low as 0.45%.
Medallion Financial’s net interest margin was 5.17% for the 2011 first quarter, up from 4.95% in the 2010 first quarter. On a combined basis with Medallion Bank, the net interest margin was approximately the same at 6.7% reflecting the continued low cost of funds at the bank, and the Bank’s higher-yielding consumer loan portfolio.
Andrew Murstein, President of Medallion Financial stated, “We are extremely pleased with the quarter’s operating results. We continued to see strong taxi medallion collateral values demonstrated through price appreciation in taxi medallions throughout 2010 and continuing to date through 2011. Prices for corporate medallions in New York City increased 23% since 2009, and are currently at over $930,000 per medallion through May 2011. We continue to experience zero losses on any taxi medallion loan we have originated. In addition, our loan to value ratio on our entire medallion portfolio is under 50%.”