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 $6,766,000 or $0.27 per diluted common share in the 2014 first quarter, up $294,000 or 5% from $6,472,000 or $0.30 per share in the 2013 first quarter. Net investment income after income taxes was $3,450,000 or $0.14 per share in the 2014 quarter, up $987,000 or 40% from $2,463,000 or $0.11 per share in the 2013 quarter.
Medallion Bank, the Company’s unconsolidated wholly-owned portfolio company, had net income of $5,972,000 in the 2014 first quarter, compared to $4,650,000 in the 2013 first quarter, an increase of $1,322,000 or 28%. 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 which are at historically low levels, and which are the Company’s least expensive source of funds.
Andrew Murstein, President of Medallion Financial stated, “We are extremely pleased with the 2014 first quarter results, which were among the highest in the Company’s history. Additionally, we are also pleased that we were able to increase our dividend to $0.24 per share, the highest it’s been in 13 years, and up from $0.22 a year ago. Over the last 5 years we have given our shareholders an annual return including dividends of approximately 18% per year, including 29% in 2013. We are proud to have performed so well, and we feel confident in our future.
“We are also excited about the prospects of financing many of the future winning bids on the 1,600 New York City taxi medallions which will be auctioned off over the coming years. This should help drive the continued growth of our business. The taxi industry remains extremely solid in many of our markets, especially our largest market, New York, where values are as strong as they have ever been. Our average loan to value ratios in all of our markets are under 40%.”