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 $6,397,000 or $0.29 per diluted common share in the 2013 third quarter, compared to $6,611,000 or $0.31 per share in the 2012 third quarter. Net investment income after income taxes in the 2013 third quarter was $4,415,000 or $0.20 per share, up $3,078,000 from $1,337,000 or $0.06 per share in the 2012 third quarter.
For the 2013 nine months, earnings, or net increase in net assets resulting from operations were $19,118,000 or $0.87 per share, compared with $17,993,000 or $0.91 per share in the same 2012 period, an increase of $1,125,000 or 6%. Net investment income after income taxes was $8,620,000 or $0.39 per share in 2013’s first nine months, up $3,880,000 or 82% from $4,740,000 or $0.24 per share in the 2012 nine month period.
Medallion Financial’s net interest margin was 6.33% for the 2013 third quarter, compared to 4.21% in the 2012 third quarter, primarily reflecting our reduced cost of funds from funding sources that have been favorably repriced, as well as higher interest recoveries and other bonuses and Medallion Bank dividends. For the first nine months, Medallion’s net interest margin was 5.53%, compared with 4.38% in the 2012 period.
On a combined basis with Medallion Bank, the net interest margin was 6.96% in the quarter, compared to 6.39% 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 6.55% and 6.25% on a combined basis with the Bank for the comparable nine month periods.
Andrew Murstein, President of Medallion Financial stated, “We are extremely pleased with the 2013 third quarter and year-to-date results, which were among the highest in the Company’s history. Also, we are pleased to announce that we are increasing our dividend for the quarter to $0.23 per share, the highest it has been in 13 years. Over the 10 years ended in 2012, we have given our shareholders an annual return including dividends of approximately 25% per year, and for the 2013 nine months, have provided a total return of 44%. We are proud to have performed so well, and we feel confident in our future.