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 were $6,249,000 or $0.28 per diluted common share in the 2013 second quarter, compared to $5,917,000 or $0.30 per diluted common share in the 2012 second quarter, an increase of $332,000 or 6%. For the six months, earnings, or net increase in net assets resulting from operations were $12,721,000 or $0.58 per diluted common share, compared with $11,382,000 or $0.61 in the same 2012 period, an increase of $1,339,000 or 12%.
Medallion Financial’s net interest margin was 4.76% for the 2013 second quarter, compared to 4.77% in the second quarter of 2012, primarily reflecting our reduced cost of funds from funding sources that have been favorably repriced. For the first six months, Medallion’s net interest margin was 5.13%, compared with 4.47% in the 2012 period.
On a combined basis with Medallion Bank, the net interest margin was 6.29% in the quarter, compared to 6.32% a year ago, reflecting the continued low cost of funds at the Bank, and the Bank’s higher-yielding loan portfolio. Net interest margin was 6.32% and 6.18% on a combined basis with the Bank for the comparable six month periods.
Net investment income after taxes in the 2013 second quarter was $1,742,000 or $0.08 per share, down $51,000 or 3%, from the $1,793,000 or $0.09 per share posted in the 2012 second quarter. Net investment income after income taxes was $4,205,000 or $0.19 in 2013’s first six months, up $802,000 or 24% from $3,403,000 or $0.18 in the 2012 six month period.
Andrew Murstein, President of Medallion Financial stated, “We are extremely pleased with the 2013 second quarter and year-to-date results, which were among the highest in the Company’s history. Also, we are pleased to announce that we will again be paying a dividend of $0.22 per share, the highest it has been in 12 years. Over the last 10 years we have given our shareholders an annual return including dividends of approximately 25% per year. We are proud to have performed so well, and we feel confident in our future.